Struggling local residents continue to feel the sting in the Yarra Ranges, but Council have made a slight amendment to help support ratepayers in need.
At the Tuesday 23 May Council Meeting, amendments were made to Council’s Financial Hardship and Rate Recovery Policy, following changes to the State Government’s Local Government Act (1989).
Director of Corporate Services at Yarra Ranges Council Andrew Hilson said the State Government amendments will provide more flexibility for people who are struggling to pay their rates, and standardise Victorian Councils’ approach to helping people experiencing financial hardship.
“These changes will provide more options for relief for people experiencing financial hardship, sets the amount of interest that can be charged for late repayment, and clarifies when council can commence formal collection proceedings through the court system for long-overdue rates.”
“In addition, we’ve made small changes that will clarify how we manage hardship agreements and payment plans, including giving longer deferment periods for paying rates (from 12 to 24 months) for people on Hardship Agreements and setting timing for payment plans (weekly, fortnightly or monthly). We think these changes will help people to find options that work for them, if they’re experiencing financial hardship.”
The State Government’s Local Government Legislative Amendment (Rating and Other Matters) Act 2022 was given Royal Assent in August last year, following recommendations made following the Local Government Rating System Review and the Victorian Ombudsman’s Investigation.
Mr Hilson said rates income helps to fund almost everything Council does.
“We always try to strike a good balance in our annual budget between providing value for money to our ratepayers, while ensuring we can provide more than 120 services to people in 55 towns each year,” he said.
“We know that paying rates on time can be difficult for some in the community, especially navigating the current cost of living crisis.”
As part of Council’s amendments, the minimum requirements for a Payment Plan or a Hardship Agreement have also been altered. Payment Plans no longer have a penalty interest rate, so more ratepayers may opt for a plan than a Hardship Agreement, which always had no penalty interest rate. Payment Plans have a slightly higher minimum payment requirement.
Deputy Mayor and Melba Ward Councillor Sophie Todorov spoke to the motion and said the amended policy gives Council flexibility to still consider hardship provisions, deferral or waiver of rate payments, and to provide referrals for further support.
“No ratepayers, including ourselves, enjoy receiving their rates in the first place, let alone under hardship. However, we know that they’re essential for Council’s financial viability and meeting long-term community needs,” she said.
“The policy may pose potential costs to Council of approximately $450,000, but it still provides more avenues of support for the community and reducing financial pressure on those who need that the most.”
As of 31 March 2023, 1493 Payment Plans and 860 Hardship Agreements are in place.
Council encourages anyone who is concerned or struggling to pay their rates to get in touch on 1300 368 333 to talk about what options are available for them.
