Gold Coast rates scandal: How council can refund overpayments

State government sources say nothing is stopping council issuing refunds to overcharged ratepayers – as long as they’re happy to wait. FULL DETAILS

STATE government sources say there is no impediment to council refunding ratepayers overcharged in a rates bill fiasco if it chooses to do so when handing down its next budget.

The Bulletin last week revealed hundreds of ratepayers had been paying 40 per cent above the odds for years because they were being charged rental rates for homes they actually lived in.

The ratepayers said they failed to pick up the mistake because the general rates category for rentals appears simply as ‘Residential 2’ on bills.

Affected ratepayers said they had been told by council officials they could not be refunded for past overpayments because objections must be lodged within 30 days of bills being issued.

Commenting on the matter on Friday, Mayor Tom Tate - who immediately ordered a CEO investigation when the Bulletin broke the story last week - decried “rigid state government

legislation”, saying “to give us more leeway would be better”.

Mayor Tom Tate. Picture: Richard Gosling.

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Division 2 councillor William Owen Jones also said council was bound by state rules.

“The council’s policy is effectively dictated by state legislation,” Cr Owen-Jones said. “If they (ratepayers) are unable to notify a change in that time frame the city has to follow the law.”

However sources in the Department of State Development, Infrastructure, Local Government and Planning told the Bulletin council could choose to issue refunds if overcharging had occurred.

The only caveat was that provision would have to be made in council’s next budget, meaning ratepayers would likely have to wait until the next financial year.

“The issuing of rates notices to ratepayers is a matter for each individual council,” a spokesperson for the department said.

“The Queensland Government has not been contacted by council in relation to this issue but is available to work with council should assistance be required.

“If ratepayers have been overcharged by Council, this may be rectified at the handing down of council’s next budget.”

Gold Coast Council rate bills showing the 'Residential 1' and 'Residential 2' categories.

The City’s budget for 2022-23 was handed down in June. The 2023-2024 budget will be handed down at the same time next year.

On Friday Cr Tate, who has championed his record of keeping rate rises at or around the Consumer Price Index, said he was “concerned” to read the Bulletin’s revelations.

The Mayor directed CEO Tim Baker to investigate the claims immediately and report back to councillors.

“If there’s any room to help the ratepayers, we will,” Cr Tate said.

Upper Coomera man Brian Reichelt, who has overpaid his rates for 19 years - an estimated $10,000-plus - told the Bulletin he would be willing to wait until next year to receive a full refund.

“A couple of months is nothing. As long as we get our money. People have been overpaying for years,” Mr Reichelt said.

“Be fair and reasonable, that’s all we want.”

‘LOST THOUSANDS’: MAN OVERPAYS FOR 19 YEARS

A man fears he has lost around $10,000 after overpaying council rates on his Upper Coomera unit for an extraordinary 19 years.

Brian Reichelt is one of more than a hundred frustrated ratepayers to come forward after Bulletin revelations many people have been unwittingly paying rental rather than owner-occupier rates.

Mr Reichelt, who owns Foliage Farm Wholesale Nursery in Wongawallan, said he was aware the two-bed unit he bought 19 years ago had previously been a rental and rang council to inform them of the change of use.

But when he checked his notice after the Bulletin’s story he was shocked to discover he was still paying the higher rental rate.

“I did phone the council at the time and say this has gone from a rental to a home, so please make sure this is correct in the rate amount because the old owners did inform me it’s a different rating amount,” Mr Reichelt said.

“I put my trust and faith in council 19 years ago that they would do the right thing. And they let me down.

“I’m not sure how much it’s cost me, but on a rough calculation, I’m $10,000 down.”

Brian Reichelt, who has been overpaying his council rates for 19 years. Picture: Richard Gosling.

Mr Reichelt said he did check his rates notices when he received them, but didn’t spot the error because the property was listed as ‘residential’.

Council lists owner occupier properties as ‘Residential 1’, rentals as ‘Residential 2’, and properties such as Airbnbs which are let to tourists as ‘Residential 3’.

General rates for rentals are forty per cent higher than for owner-occupied homes.

“I saw the story come up on the Bulletin so I got my rates notice out, it was pretty fresh, and it was Residential 2 and I though, ‘nah, it can’t be right’, because I remember the conversation 19 years ago,” Mr Reichelt said.

“So I contacted the council and said, what is ‘Residential 2’, and he said ‘that’s a rental’.

“When you get your rates notice it doesn’t say rental. That’s the problem. It’s cryptic, it’s vague. It’s caught me out.”

Mr Reichelt said he was speaking out on behalf of a large number of people he has spoken to who have also found they were overpaying. Picture: Richard Gosling.

Council told the Bulletin it will only offer refunds if objections are lodged within 30 days of bills being issued.

It means Mr Reichelt will have a battle on his hands to recover any of the money he has lost.

“People are saying, let’s put a class action forward, so let’s see where this goes,” he said.

“If they (council) don’t come to the party I’ll be in it for sure, I’ll be head of the pack.”

On Friday Mayor Tom Tate said he was concerned by the Bulletin’s report and directed council CEO Tim Baker to conduct an urgent investigation into the matter.

“I’ve sent a directive to the CEO to investigate that. If there’s any room to help the ratepayers we will,” Cr Tate said.

Division 2 councillor William Owen-Jones said when it came to retrospective refunds, council’s hands were effectively tied by state government legislation.

“It’s something that happens very rarely,” Cr Owen-Jones said. “When somebody purchases a property their conveyancer usually notifies the category and that’s what the city uses in charging rates.

“The council’s policy is effectively dictated by state legislation. If they are unable to notify a change in that time frame the city has to follow the law.”

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