Metropolitan Adelaide councils are selling homes to recoup unpaid rates as “absolute last resort”

A Hills ratepayer owes $60k, a city business hasn’t paid a $620k bill and a suburban resident is resorting to paying with super. See where houses are being sold.

Metropolitan councils are owed more than $43m in unpaid rates, with 11 homes sold in the past three years as a last resort to try and recover outstanding debts.

The councils told The Advertiser they had noticed a slight rise in either failure to pay bills on time, or in hardship applications, due to the cost-of-living crisis.

Onkaparinga Council – Adelaide’s largest metropolitan council – had the largest debt of $11.9m and had referred 6582 ratepayers to debt collectors last financial year.

It was followed by Adelaide, Playford and Salisbury councils, which were owed $6m, $5m and $4.1m, respectively.

Playford Mayor Glenn Docherty said there had been a “minor increase” in residents not being able to pay their rates and the council was committed helping those in financial difficulty.

“We have a range of options available to assist ratepayers with managing their rates, including direct debit, Centrepay bill smoothing, payment arrangements, and referral to free accredited financial counsellors,” Mr Docherty said.

Playford Mayor Glenn Docherty. Picture: Russell Millard

He said the council sold one property in 2023-24, which was owned by a deregistered company and had become abandoned and derelict after the company directors died.

“The council worked with ASIC to sell the property and after the recovery of unpaid rates, all other proceeds were held by the courts,” Mr Docherty said.

Tea Tree Gully, which is owed $3.98m in outstanding rates, has sold four homes in recent years to recover unpaid rates and referred 2646 ratepayers to debt collectors.

“We are currently working with some people who have rates in arrears for more than three years to assist them in paying their rates without council forcing a sale,” a spokeswoman said.

“This includes the mortgagee paying the debt to the council and the ratepayer accessing funds from their superannuation.”

A Walkerville Council spokeswoman said selling a property was “an absolute last resort” and it was working with individuals who have been in arrears for over three years or more.

“If a ratepayer is experiencing hardship, the council will always provide financial hardship support to address this, and we highly encourage our ratepayers to reach out so we can work collaboratively on a solution together,” the spokeswoman said.

The largest outstanding individual debt was $59,875 owed by an Adelaide Hills Council resident, while the largest commercial debt was $620,731 in the Adelaide City Council area.

An Adelaide Hills Council spokeswoman said they had experienced a 12.3 per cent rise in ratepayers unable to pay their quarterly bills on time, over the past 12 months.

LGA President Mayor Dean Johnson Picture: Supplied

Local Government Association of SA president Dean Johnson said councils understood financial pressures households faced and offered flexible payment plans.

“Property sales are always a last step, and councils do not profit from them – they are only used to recover what’s owed, with any leftover funds going back to the property owner after all other debts and charges are settled,” Mr Johnson said.

Originally published as Metropolitan Adelaide councils are selling homes to recoup unpaid rates as “absolute last resort”