Local Government Bill 2018

Division 3—Payment of municipal rates, service charges and special purpose charges

Clause 119 provides that a Council may levy municipal rates and service charges by giving a notice to the relevant ratepayer at least 28 days before payment is due. The notice must contain the containing matters prescribed in regulations.

Clause 120 provides for the payment of municipal rates and service charges.

Subclause (1) entitles ratepayers to pay their rates notice in either 4 instalments or in a lump sum.

The dates for these payments are fixed by the Minister and published in the Government Gazette. A Council may also offer other repayment options.

Subclauses (4) to (7) provide for the payment of a special purpose charge as a lump sum or in an instalment plan. If the charge is mainly for capital works, the Council must offer an instalment plan over at least 4 years. This is intended to ensure ratepayers are not compelled to pay a very large charge as a single payment. Any interest costs included in instalments must not exceed the Council's estimated borrowing costs by more than 1 per cent and must not include any interest included in the total cost calculated under clause 111.

Clause 121 provides that a Council may require a person to pay penalty interest, in accordance with section 2 of the Penalty Interest Rates Act 1983, if the person has not paid municipal rates, service charges or special purpose charges by the due date or dates.

For municipal rates and service charges, the relevant dates from when penalty interest is calculated are the dates fixed by the Minister under clause 120 or a date agreed with the Council through an alternative payment option provided.

Clause 122 provides for a Council to offer incentives for early payment of municipal rates, service charges and special purpose charges.

Clause 123 empowers a Council to grant a rebate or concession in relation to any municipal rate, service charge and special purpose charge.

A rebate or concession under this clause must specify the benefit to the community as a whole and may be subject to terms with which the ratepayer must comply. If the ratepayer fails to comply with the terms, the Council can issue a notice requiring them to pay the full amount and any interest for late payment.

Clause 124 provides for a Council to defer the payment of a rate or charge if payment will cause hardship for a person. If the Council subsequently considers that the previous hardship circumstances have changed or that the person no longer owns the rateable land, it may by notice require payment of all or part of the deferred amount.

Clause 125 subclause (1) provides for a Council to waive all or part of a person's rates, charges or interest because the person is an eligible recipient under the State Concessions Act 2004 or otherwise on the grounds of financial hardship.

Subclause (2) restricts a waiver to rates and charges payable on the persons principal place of residence.

Subclause (3) states that a person cannot apply for a waiver if they do not own the land unless they are liable to pay the rates or charges for some reason or if they hold residence rights in a retirement village in accordance with the Retirement Villages Act 1986.

Subclause (4) limits a person to a single application per rating period.

Subclauses (5) and (6) specify the forms and times applicable to applications for waivers.

Subclause (7) makes it an offence and imposes a penalty if a person gives false or misleading information or fails to notify the Council of a relevant change in their circumstances.

Clause 126 entitles a person whose rights are affected by the imposition of a municipal rate or service charge to apply to VCAT for a review. An application must be made within 60 days of receiving the first notice. The purpose of this clause is to ensure a person has reasonable means of redress if a Council has wrongly levied a rate or charge.

The grounds on which an application to VCAT may be made are specified in subclause (1).

Division 4—Recovery of municipal rates, service charges and special purpose charges

Clause 127 entitles a Council to recover unpaid municipal rates, service charges and special purpose charges by suing for the debt.

Subclause (2) entitles an owner to recover municipal rates, service charges and special purpose charges from an occupier who has agreed to pay the municipal rates, service charges and special purpose charges and failed to do so if this has resulted in the owner paying them.

Clause 128 entitles a Council to require an occupier of a rateable property to pay the rent, otherwise due to the owner, to the Council in lieu of a failure by the owner to pay the relevant municipal rates, service charges and special purpose charges. Failure to do so entitles the Council to seek to recover the unpaid amount from the occupier.

Subclause (3) caps the amount an occupier may be required to pay to the Council at the amount owed in rent.

Subclause (4) entitles the occupier to subtract the amount paid to the Council from the rent to be paid to the owner.

Subclause (5) provides that a payment of rent by the occupier to the Council discharges their debt to the owner for that rent.

Subclauses (3), (4) and (5) do not apply if the occupier has agreed to pay the municipal rates, service charges and special purpose charges.

Subclause (8) places the burden of proof on the occupier that they had not agreed to pay the municipal rates, service charges and special purpose charges and that the amount owed to the Council as municipal rates, service charges and special purpose charges exceeds the rent owed.

Clause 129 provides for a Council to sell land to recover unpaid municipal rates, service charges and special purpose charges.

Subclause (1) empowers a Council to sell or acquire land to recover unpaid municipal rates, service charges, special purpose charges and specified associated costs that remain unpaid after 3 years. This is subject to—

• 
  there being no current payment arrangements in place that are being complied with; and
  

• 
  the Council having a court order requiring payment of the municipal rates, service charges, special purpose charges and costs;
  

• 
  the sale price or transfer value being no less than the written valuation by a valuer in the preceding 6 months.
  

Subclause (2) defines valuer.

Subclause (3) specifies notices that the Council must give before selling or transferring the land.

Subclause (4) provides for the Council to retain from the sale or transfer amounts that cover all unpaid municipal rates, service charges and special purpose charges, enforcement costs, interest and expenses incurred in the sale or transfer.

Subclause (5) describes how the Council must disburse any amounts remaining from the sale or transfer after retaining the amounts in subclause (4). This includes discharging any mortgages and paying any other known charges outstanding.

Subclause (6) provides that if any person entitled to payment under subclause (5) cannot be found after reasonable attempts, the Council may retain the amount for general purposes.

Subclauses (7) and (8) specify steps to be taken by the Registrar of Titles and vest the estate and interest in the land in the transferee.

Clause 130 subclause (1) provides that a person who becomes the owner of rateable land becomes liable to pay any municipal rates, service charges and special purpose charges plus any interest or court awarded legal costs arising from arrears or non-payment.

Subclause (2) prevents the Council from recovering penalty costs accrued by the previous owner by specifying that penalty interest and legal costs may only be recovered from the current owner if the amounts were disclosed in the land information certificate issued under clause 159. This is to ensure that a purchaser of land only becomes liable for these debts of the previous owner disclosed the debts at the time of the sale.

Clause 131 provides for municipal rates, service charges and special purpose charges liabilities in the event that the rateability status of the land changes.

Subclause (1) provides that, when land becomes rateable during a financial year, municipal rates, service charges and special purpose charges are only payable for the proportion of the year when the land was rateable.

Subclause (2) provides that, when land ceases to be rateable during a financial year, municipal rates, service charges and special purpose charges should be paid only for the proportion of the year when the land was rateable.

Subclause (3) entitles a Council to seek the difference between the amount of the municipal rates, service charges and special purpose charges paid under subclause (2) when the amount owed is higher.

Subclause (4) requires the Council to refund the person when the obverse of (3) is true.

Subclause (5) provides that a Council does not have to repay municipal rates, service charges and special purpose charges under this clause in respect of a property when the municipal rates, service charges and special purpose charges were due and paid before the current owner acquired the property.

Clause 132 provides that a person cannot claim that a rate or charge was invalid in proceedings for recovery of unpaid municipal rates, service charges or special purpose charges. This is because there are separate provisions for a person to apply to VCAT for a review of a municipal rates, service charges and special purpose charges levied under clause 119 and clause 127.

A municipal rate or service charge is not invalid only because it was declared after the date specified in the Council Budget.