Top End councils losing millions in overdue rates

RATEPAYERS’ debt is ballooning in the Top End. Top End councils are now chasing millions of missing ratepayer dollars

Darwin mayor Kon Vatskalis is concerned ratepayers are struggling to pay their debts

RATEPAYERS’ debt is ballooning in the Top End.

Top End councils are now chasing millions of missing ratepayer dollars, with the number of indebted ratepayers growing over the past four years, according to an ABC Darwin report..

It was revealed that Darwin council’s overdue rates had nearly doubled — from 4 per cent to 8 per cent — since 2015.

The NT News reported last month that Darwin council rates would rise 3 per cent in the 2019/2020 financial year — an increase of about $1 a week.

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Under the updated municipal plan, average households will see an increase of $53 dollars a year.

In Palmerston, those overdue rates had nearly doubled from $655,712 in 2015 to almost $1.2 million.

Overdue rates for Litchfield council, which has long battled with residents to recoup rate dollars, are also growing.

“Prior year rates outstanding in April 2019 are greater than the same time the year before.

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This illustrates the current economic climate in Darwin,” read an item from the Litchfield Council’s 2019 financial report.

In the ABC Darwin report exposing the growing financial black hole for local governments, Darwin’s economic downturn and post-Inpex reality was blamed for the rise in ratepayers in arrears.

The report identified “a rise in the number of vacant shopfronts and residential dwellings in Darwin” following the winding down of Inpex construction, “meaning property owners were missing out on rental revenue but were still required to pay council rates”.

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It was revealed Palmerston Council would soon “halve its penalty interest rate on overdue rates from 18 per cent to 9 per cent, in line with the rate charged by the Australian Tax Office”.