Coffs ratepayers to pay just 6 per cent on late rates in 2021/22

It’s the interest rate absolutely nobody is talking about, but it’s about to change by an entire percentage point

Always wanted to burn your rates notice but were too concerned about those pesky interest repayments? Now could your time to shine.

Interest charges on late rates will go down an entire percentage point, leaving excitable ratepayers with less less to worry about if they burn their rates notices.

The NSW Office of Local Government has announced maximum interest charges on late rates will hit the bargain basement level of just 6 per cent in the 2021/22 financial year, down from 7 per cent.

Maximum interest rates charged on overdue rates and charges are pegged to the Reserve Bank cash rate with 6 per cent on top, meaning it is likely these will be the lowest overdue fees many councils will charge, aside from the doughnut rate (0 per cent) offered last year.

In line with OLG directives, Coffs Harbour City Council’s overdue interest rate was zero per cent in the first half of the 202/21 financial year, taking into account the economic impact of coronavirus.

Now the economy is bouncing back, interest is being charged at the maximum rate of 7 per cent until the end of the financial year.

It’s not the only good rate news this financial year with Council’s decade-long Special Rate Variation to raise money for flood mitigation coming to an end. 

The SRV was introduced after the devastating floods of 2009 and the 4.4 per cent rate increase directly funded four flood detention basins in west Coffs Harbour to lessen the impact of flooding in the Coffs Creek basin.

At its peak the SRV was generating $1.7 million annually, over and above expectations.