Australia's National Local Government Newspaper Online

How to collect outstanding rates without additional hardship

By David Cains *

All councils have the social responsibility to collect all outstanding rates as quickly as possible, with the least additional costs burden to ratepayers. What council may forget is that the ratepayer who cannot pay due to circumstances beyond their control can be severely penalised by the system.

It would appear that most Local Government Acts deny councils the ability to charge for the actual costs of recovering unpaid rates by a professional accounts manager (usually as low as $18 per account). This forces the involvement of the legal process adding more that $200 to an unpaid debt.

It is time that councils review their own practices where, usually through the tender process, they force the additional burden of escalating legal costs on to already distraught debtors, who may need an arrangement to pay off the original rate notice, let alone this extra burden.

If the problem is restrictions under the Local Government Act in your area, it is time that action is taken to pressure your State Government to take the responsible step to review recovery actions of unpaid rates.

At The ARMS Global Group Pty Ltd we see our social community service is to assist councils to pressure State Governments to change current requirements or where possible ensure the costs to ratepayers is not in excess of $18 per account.

For further information contact David Cains on (02) 9472 7400 or visit www.lintonpitt.com.au.

* David Cains is CEO of The ARMS Global Group Pty Ltd.

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