- In short: Many councils in Victoria are refusing to waive rates, despite many residents experiencing financial hardship, an investigation has shown
- What's next? The Municipal Association of Victoria says councils need to "balance" supporting residents through financial hardship with ensuring the rest of the community receives vital services
Victoria's peak ratepayers advocacy group says its investigation of all local councils suggests only a handful are waiving any rates for residents doing it tough, despite increasing demand for hardship assistance.
A Freedom of Information request sent to all 79 Victorian councils by Council Watch Victoria received responses from 44 councils – with just seven councils confirming they had waived any rates in the current financial year to March 31.
The investigation follows an ABC report last month which found Victorians were increasingly struggling to pay their council rates bills, prompting criticism councils were not doing enough to help residents on the furthest margins of hardship.
While councils do not record the number of people applying for waivers, just $360,000 in rates was waived from the combined $3.1 billion in rates income charged by the 44 councils who responded to Council Watch Victoria.
Councils must 'help people who are struggling', advocate says
Council Watch Victoria spokesman Dean Hurlston said he was concerned that the small number of councils which had waived fees did not reflect the level of financial hardship his group was aware of in the community.
"What that evidence is telling us is that councils still don't understand hardship, they don't understand how to assess it, and they don't understand how to actually apply rebates and refunds to those who desperately need it in the short term or as a one-off," Mr Hurlston said.
"This is a cultural problem and to be really honest it's a moral problem.
"Councils need to do better, they need to be more transparent, and they actually need to dig deep and help people who are struggling."
Mr Hurlston said while not all ratepayers needed hardship assistance, "thousands upon thousands" were in positions that required assistance, including those suffering from terminal illnesses, fleeing domestic violence and those dealing with long-term unemployment.
"Let's be clear, hardship is a situation where you can barely afford your bills and to eat, and you're asking for some level of rebate of your rates as a one-off or a temporary assistance," said Mr Hurlston, who contested the 2022 state election for the Angry Victorians Party.
"What we know is councils have the attitude of, 'If we've billed it, we're not refunding it.'"
The Council Watch investigation also found seven councils had recorded zero hardship requests, while six only recorded a single request.
Mr Hurlston said the lack of recorded hardship requests suggested some councils were redirecting ratepayers away from meaningful hardship assistance, rather than there being no residents reaching out for help.
Some councils implementing financial hardship policies since Ombudsman report
In 2021, the Victorian Ombudsman released a largely damning report after investigating how councils responded to ratepayers experiencing financial hardship.
The report noted some councils managed the issues "very well", but others employed practices that "were simply unfair and wrong", including "common practices that could not be justified".
Those practices included councils failing to inform ratepayers of options for deferrals or waivers, refusing to even consider deferrals or waivers, and charging penalty interest on debts.
Ombudsman Deborah Glass would not speak directly to the Council Watch investigation, but provided broad comments into what had occurred since the release of her report.
This included the state government's 2022 introduction of the Local Government Amendment (Rating Reform and Other Matters) Bill 2022, which it said would "explicitly define financial hardship and require early engagement from councils with ratepayers".
Ms Glass said Local Government Victoria was yet to advise whether the ministerial guidelines it was developing had been completed.
"While we have not carried out a full survey of councils, we are aware that at least some councils have implemented or updated financial hardship policies since our report," Ms Glass said.
"Complaints numbers have remained steady since the report was tabled in 2021. We have conducted a number of conciliations between councils and ratepayers in relation to financial hardship, and these have proved very successful.
"Individual councils have been generally responsive to Ombudsman enquiries, and these cases have included councils agreeing to waivers of rates and interest charges."
Ms Glass urged anyone experiencing financial hardship and having difficulty engaging with their council about paying their rates to contact her office.
Councils must consider impacts of waiving rates, peak body says
When asked about the Council Watch investigation, the Municipal Association of Victoria (MAV), which is the peak body for local government, said there was a "balance" for councils in dealing with hardship.
"When hardships are faced by individuals in paying their rates, this can have flow-on impacts for the rest of the community who are also reliant on critical council services," MAV president David Clark said.
"Councils exist solely to serve their communities. There was a great example of the value of localised, bespoke decision-making as councils helped guide their communities through the COVID-19 pandemic.
"After the 2021 Ombudsman's report, the sector continues to work with Local Government Victoria on legislated reforms and financial counsellors across the state to ensure those most in need have access to appropriate support."
Only a handful of Victorian local councils waiving rates for residents doing it tough, investigation finds - ABC News
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