Mornington Shire Council could sell houses to recoup unpaid rates
A SOUTHEAST Melbourne council is wielding the axe on homeowners who haven’t paid their rates, announcing plans to sell up to 153 properties to recoup $1.4 million in debt.
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A SOUTHEAST Melbourne council is wielding the axe on homeowners who haven’t paid their rates, announcing plans to sell up to 153 properties to recoup $1.4 million in debt.
Mornington Peninsula Shire councillors endorsed a draft policy at their August 28 meeting which outlines the steps of selling a property or issuing a bankruptcy notice to people who haven’t paid their rates for three years or longer and have no financial arrangement in place.
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The council report found 153 property owners owe the council $1,408,040.
Of those, 52 properties are nonresident owners or companies, 70 properties are owner/occupier with no payment arrangement in place and 31 properties span both categories, but have defaulted on the payment arrangement.
The council has followed a legal process to recover the rates, but has not previously pursued owners, and as a result some of the properties have more than 10 years of rates owing.
The council will now proceed with issuing a notice of intention to sell or notice of intention to bankrupt the 153 properties. It will only move to sell if no response is received.
The policy notes the sale of a property should be sought where it is vacant or is not the owner’s principal place of residence, and bankruptcy should be considered when the property is occupied.
Pensioners, the aged and infirmed will be exempt from the policy.
A move from Cr Antonella Celi to amend the motion to exclude owner/occupier ratepayers who were on unemployment Centrelink, Department of Veterans Affairs, Disability pension or benefit payments, was rejected.
Cr Celi said she had a lot of concerns about the policy.
“We must protect our most vulnerable and marginalised and those facing poverty in our community,” she said.
But Red Hill Ward councillor David Gill said rate defaulters who allowed the debt to reach the stage of court action were not typically people who had fallen on hard times.
“When push comes to shove these people will pay,” he said.
Ratepayers Victoria vice-president Frank Sullivan said selling homes to recoup rates was “not the right answer”.
“It’s very sad to sell homes like that, it concerns me, I don’t like that at all, there has to be a better answer.”
Council sold four properties in 2009 for unpaid rates.
The total rates outstanding at June 30 was $4.274 million.
Council rate notices are sent out each August, with ratepayers given the option to pay in full or in four instalments.
An overdue notice is sent out on February 22, and in the first week of March interest is applied to any outstanding balance.
A final notice is issued in March followed by a letter of demand from the Shire’s collection agency when no payment has been received.
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