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City moves to fix rate notices after residents overcharged by 40 per cent in bills

An internal review recommends a simpler rating system to prevent overcharging of ratepayers after some residents complained about paying up to 40 per cent more on their bills.

Gold Coast City Council Budget 2022-23

An internal review recommends a simpler rating system to prevent overcharging of ratepayers after some residents complained about paying up to 40 per cent more on their bills.

Some residents living in their own home were shocked to discover they were being charged rental rates instead of owner-occupier rates, a Bulletin report in September said.

A homeowner estimated being overcharged $1580 in 12 months.

The City’s response was a review recommending longer periods to make objections, more education and warning residents it was their responsibility to make checks.

“A more simplistic rating model could provide more transparency for the ratepayer in respect of how they are being charged for their properties,” the report says.

Mayor Tom Tate had asked council CEO Tim Baker to conduct an urgent investigation.

Mayor Tom Tate with the new budget — he called for a review on rates. Picture: Glenn Hampson.
Mayor Tom Tate with the new budget — he called for a review on rates. Picture: Glenn Hampson.

An officer’s report to be considered by councillors at a governance committee meeting on Wednesday shows council had:

* increased the time frame for customers to lodge an objection from 30 days to 60 days.

* ensured each objection would be reviewed and consider valid rate adjustments.

* sought advice from Legal Services which found objections are considered valid only for the current owners of a property.

* backed introducing a new owner checklist on data collection forms and a social media campaign ahead of the January rates issue.

New CEO Tim Baker helped launch review. Picture Glenn Hampson.
New CEO Tim Baker helped launch review. Picture Glenn Hampson.

“The internal review identified a number of opportunities for improvement in the process to reduce the risk of miscategorisation of rate. Work commenced immediately to action several of these improvement opportunities,” the report says.

The City had appointed an external consultant to undertake a review at a cost of $34,000. Their findings backed those of officers.

About $300,000 was provided for the review of the rating structure with the aim to complete it in the 2023/24 financial year for the 2024/25 rating period.

At least $150,000 to implement an IT solution for rate modelling will need to be ticked off from councillors from this budget.

Governance chair William Owen-Jones said: “The City generates approximately $1.4 billion in revenue from over 276,000 rateable properties.

Governance chair Councillor William Owen-Jones. Picture: Jerad Williams.
Governance chair Councillor William Owen-Jones. Picture: Jerad Williams.

“Where ratepayers disagree with the rating category they have 60 days to lodge a notice of objection for review.

“This year we had around 100 cases where objections to categories have been lodged.”

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Original URL: https://www.goldcoastbulletin.com.au/news/council/city-moves-to-fix-rate-notices-after-residents-overcharged-by-40-per-cent-in-bills/news-story/c4de921501d40895020f384b6a8eb497