If you’re experiencing financial difficulty and cannot pay your local council rates because you have lost your job, you should inform your council of your circumstances. You can ask them to offer you flexible payment options, and to waive the interest on your overdue rates while you are without a job.
If you advise them you expect your circumstances to be short-term and pay something off the debt, the council will usually agree to an arrangement where you can pay later and still keep your home and assets.
Payment options available from your council include:
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Negotiate a payment arrangement
You may be able to negotiate to pay any outstanding rates by instalments over an agreed period. This option is suitable if you expect your change of circumstances to be short-term.
Make sure you only commit to a payment arrangement that is realistic in your current circumstances, and advise your council directly and promptly if your circumstances change again.
Keep in mind that you will be required to pay ongoing annual rates as well as the instalments for rate arrears if you commit to a plan that recovers your overdue rates until your rates debt is paid off.
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Apply for deferred payment
You may be able to negotiate with your council to defer your rate payments for a specified period if you can demonstrate their demand for payment will cause you severe financial difficulty.
Work out your income and expenses and obtain help to work out when you will be in a position to pay. Then contact the council by phone or visit the council offices to request a deferral of your rates for the period it will take to get your finances into a better position.
Remember that you will have to pay the deferred rates and should do so as soon as you can because high interest charges may apply to your arrears.
Your council will require you to pay rates they have deferred if:
- they believe your circumstances have changed, so payment will no longer cause you hardship; or
- you sell or are no longer living in the property.
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Claim your concession entitlement
If you are receiving a Centrelink benefit check your concession entitlement has been applied to your council rates. Concessions of up to 50% of normal rates may be available to Concession Card and Department of Veterans’ Affairs Gold Card holders.
Contact the council, provide them with your details about your concession entitlement and ask them to adjust your account if your entitlement has not been taken into account in the bill.
Find out more about concession entitlements in Victoria.
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Apply for waiver
You can apply for a waiver of council rates (and any interest charged on rate arrears) if you can demonstrate to council that you are unable to pay and don’t expect to be in a position where you can pay in the foreseeable future.
The council has discretion on whether or not to grant a waiver. Councils are usually quite reluctant to grant waivers because those residents who do pay will then effectively be required to pay more to meet the council’s budget requirements.