Mornington Peninsula rates: interest free extension for overdue bills
Mornington Peninsula Shire is still owed about $1 million in unpaid rates. But only a handful of people have qualified for the council’s hardship policy.
South East
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Just five ratepayers have asked for help under Mornington Peninsula council’s hardship policy since the coronavirus pandemic began.
And councillors fear the application process is “too difficult” and not well promoted.
The surprising number was revealed in a report that included a recommendation to extend the interest-free period to pay outstanding rates for a second time to December 31.
Between April 7 and August 20 the council’s revenue department received 268 COVID-19 related queries about rates.
Of that total 23 people asked specifically about financial hardship support and were sent application forms.
Only five people applied – two residents and three property owners who did not live in the house nominated for rate relief.
Cr David Gill couldn’t understand why so few ratepayers had qualified for help.
“That doesn’t make any sense to me … how onerous is this application?” he said.
Mayor Sam Hearn was worried ratepayers receiving Jobseeker or JobKeeper payments assumed that they would not qualify for help from the council as well.
Cr Antonella Celi asked how the hardship policy was publicised, including the initial extension to August 31.
The shire’s chief financial officer Bulent Oz said the hardship policy was well promoted though council media releases and newsletters and via social media posts.
Mr Oz said reminders sent to ratepayers with outstanding bills encouraged people struggling to pay to apply for help under the hardship policy.
Applicants were asked to provide details of monthly income and expenses, assets and number of dependants, he said
“It could be that they are asset rich and cash poor … or have a business and their income reduced considerably, that will all be considered as part of the application,” Mr Oz said.
“There is not just one rule, it will be considered case-by-case and we will assess the applicant’s ability to pay their rates.”
Prior to COVID-19 98.4 per cent of rates were paid on time.
This year by June 30 the amount of unpaid rates increased by $4 million.
By August 31 that figure had shrunk to $1 million after the council agreed to extend the amount of time to pay without incurring interest.
The council voted in favour of a second interest free extension on unpaid rates until December 31.
All rateayers are eligible to apply for a payment plan for outstanding balances for 2019/20 and rates charged for this financial year.
Approved applicants will not be charged interest.
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