The proportion of overdue council rates has been hovering at just under ten percent of the total billed for the past two years, up from 7.57% in 2021 and almost double the 5.18% of 2018.
At their February 2024 meeting, questions were asked by Coonamble Shire councillors about the trend and its impact on council revenue.
“The amount of unpaid rates is creeping up,” Cr Bill Fisher said. “I’m just wondering how far that will be allowed to go.”
The rates and charges in arrears as at the 31 January was $4,029,768 compared with $3,663,875 at the end of January last year – a difference of almost $366,000.
Director of Corporate Services Bruce Quarmby says that the level of unpaid rates is “still within an acceptable ratio” but that staff are taking the steps needed to bring the figure down.
“Obviously we are conscious of the cost of living at the moment,” he said.
“It’s not an easy fix but we work within our Credit Management & Debt Recovery Policy and work with the community.”
“It’s challenging but that is why council has staged some of the rate increases for things like water and sewer.”
Mr Quarmby reminded councillors that ratepayers could request to be put on a range of payment arrangements or apply to be considered under Council’s Financial Hardship Policy.
He believes the problem was “exacerbated by measures put in place during COVID”.
In 2020/21 a 0% interest rate was in place for six month and was accompanied by “a bit of a hiatus in debt recovery and that has had a lag effect that has impacted negatively on our recovery.”
“For six or eight months we didn’t send anyone to debt recovery.”
But those days have passed and the COVID concessions are no longer available.
Council’s policy is clear that where there are no arrangements in place for repaying overdue rates or the arrangements re not being followed, the customers will be referred to their Debt Recovery Agents.
These agents have a variety of options to recover the outstanding amounts including garnishing bank accounts, wages or other income.
As a last resort, where rates remain unpaid for more than five years, or one year in the case of vacant land, Council may commence a Sale of Land for Unpaid Rates.
Mr Quarmby says the last compulsory sale of land was ten years ago in 2014 but that it may become necessary if ratepayers are not being seen to make an effort to repay their debts.
“Once people get a few years in arrears it gets harder for them to get out of it,” he said.
“If you are struggling, come in and make an arrangement.”