‘Brutal, self-serving’ councils knock back thousands of pleas to waive unpaid rates

A bombshell report has revealed how “greedy” councils respond to residents struggling to pay their rates. See how your council fares.

The most please for help paying rates have come from Stonnington. Picture: David Crosling

“Brutal, self-serving” Victorian councils are “failing the state’s most disadvantaged”, waiving a tiny amount of rates for those claiming hardship.

A Council Watch investigation has revealed that many councils are not offering any rebates or waivers despite thousands of applications for help.

Others claimed waived interest on overdue rates as a form of relief.

Council Watch said it was too hard for ratepayers to find out how to apply for relief and wanted councils to make the process easier.

The group called on councils to set aside a percentage of rates each year to cover hardship claims and publish how applications were assessed.

Vice president Dean Hurlstone said the data Council Watch collected from councils via Freedom of Information revealed just 0.01 per cent of 2851 hardship applications across the state led to rates being waived.

The figures revealed 40 Victorian councils waived $359,147 in unpaid rates and were still chasing $346m across 45,000 payment plans.

Mr Hurlstone said the amount of rates being waived was significantly less than debts wiped by any bank or utility.

“Councils continue to be cold, brutal, greedy, self-serving, and failing the most disadvantaged,” he said.

“What kind of world do we live in where banks and utilities look after those in hardship, and councils continue to simply demand more money?”

The investigation revealed some of Melbourne’s wealthiest areas have been hit the hardest including Stonnington, where the council has received 856 hardship applications and waived none of the debt.

The inner city council has 7,888 ratepayers in arrears, owing close to $14m.

All those who applied for hardship have been placed on payment plans.

Neighbouring Boroondara has a whopping 17 per cent of rates in arrears to the tune of $29m, however, only two hardship applications have been received and neither had their rates waived.

The council has 392 payment plans established with ratepayers owing money.

A Boroondara Council spokesperson said residents experiencing financial hardship were eligible to apply for deferrals, payment plans or rates waivers, including waiving of interest.

“Ratepayers experiencing financial difficulty can contact Council to discuss their concerns so a tailored program can be arranged,” they said.

During the COVID-19 pandemic, the council also waived all new interest charges on unpaid rates until January 1, 2021.

“It is our understanding the State Revenue Office doesn’t offer waivers on land tax to help struggling property owners,” they said.

“Neither do banks offer waivers for loan repayments.”

Ratepayers in Melbourne’s outer east were also struggling lodging 447 hardship applications with Yarra Ranges Shire Council.

Just $1556 of the $21m owing was waived.

Yarra Ranges director of corporate services Andrew Hilson said the council acknowledged that current cost of living challenges were difficult for everyone.

Mr Hilson said the council had adjusted its hardship policy to make it more accessible, including modifying the minimum criteria for customers to be considered for payment plans and extending rate deferments to 24 months.

Ratepayers could also get help navigating the application process.

Council Watch said it was too hard for ratepayers to find out how to apply for relief and wanted councils to make the process easier.

Mr Hurlstone said councils should include details on how to apply for hardship on rates notices.

The group also wanted councils to be forced to set aside a percentage of rates each year to cover hardship claims and publish how applications were assessed.

A Stonnington Council spokesperson said its financial hardship policy, detailing assistance available for ratepayers, was on its website.

“Eligible ratepayers in genuine financial hardship will be provided with assistance, including an explanation of their potential entitlements to rate concessions, payment arrangement options and interest waivers,” a council spokesperson said.

All applications would be treated with “fairness, integrity and confidentiality”.