Hume City Council has moved to address a growing problem of rate arrears, with more than 18,600 properties owing almost $46m as of September.
Councillor Kate Hamley (Emu Creek Ward) highlighted the pressures facing many residents during Monday’s (24 November) council meeting, pointing to the combined impact of the housing crisis and rising cost of living.
“Many Hume households survive on low to very low incomes,” she said. “And while our hardship policy offers some relief, we need to better understand why people fall behind and explore innovative ways to help them.”
Cllr Hamley proposed consulting directly with residents who fall behind on their payments.
Her motion was seconded by councillor Sam Misho, who noted that most arrears occur in residential properties rather than commercial or industrial ones.
Cllr Misho said he knows of one person who hasn’t paid their rates for 13 years “because they haven’t been sent a bill”.
He emphasised the importance of communication and support, explaining that late payment penalty interest of 10% can be waived for those entering payment arrangements and that council encourages residents to ask for help (see here).
As a result of Cllr Hamley, council will now:
- Write to the Minister for Local Government for clarification on the State Government’s Rates Hardship Guidelines
- Review Hume’s Rates Financial Hardship Policy once the Guidelines are released
- Explore incentives for residents to enter payment plans, including a pilot project to see if financial incentives reduce arrears
- Direct engagement with residents in arrears to understand the reasons behind unpaid rates and provide Council with recommendations
Council officers will also review incentive models used by other councils and utility providers, aiming for practical and equitable approaches that support residents and reduce overdue accounts.