Big overdue rates bill could force a Tasmanian council’s hand

A Tasmanian motel is set to go under the hammer in 90 days if the owners do not pay more than $40,000 in unpaid rates.

A TASMANIAN motel is set to be auctioned if the owners do not pay more than $40,000 in unpaid rates.

The Devonport City Council has announced it will sell the Mersey Bluff Lodge Accommodation property, in North St, Devonport, in 90 days if the money is not paid.

It is the first time the council has moved to auction a property in its municipality in more than 10 years.

Devonport City Council General Manager Matthew Atkins said the council intended to sell the land in accordance with the S137 Local Government Act 1993.

Mr Atkins said the legislation stated the council may sell the land, or part of that land, as if it were the owner by public auction.

He said the ratepayer, Namuka Pty Ltd, had 90 days to pay the amount outstanding to cancel the auction.

Mersey Bluff Lodge Accommodation in North St, Devonport.

“Council can sell a property for unpaid rates if the rates have been outstanding for three years or more,” Mr Atkins said.

“In this instance the property has an outstanding amount of $41,507.79 in unpaid rates

“It’s important to mention that there is a very small minority of ratepayers with outstanding rates and council has not initiated a process to sell properties for unpaid rates since 2019.”

Devonport is not the only council which has had to move in to recover unpaid rates.

The West Coast Council has been forced to hold regular auctions to recoup what it is owed.. In April this year 30 properties were slated for auction unless the owners paid the council overdue rates.

And earlier this year, the Latrobe council auctioned off the offending properties, either vacant residential or farm or bushland, to recover more than $20,000.