Property auction a last resort for unpaid rates

Council will put almost 60 properties up for auction on Friday 14 September 2018 to recover unpaid rates.

A total of 59 properties have been listed to go under the auctioneer’s hammer at 10am at Armidale Town Hall, 127 Rusden Street, Armidale.

Council's Interim Chief Executive Officer, Chris Rose, said the owners of all the properties received numerous requests to pay the outstanding rates and charges or come to a satisfactory arrangement to settle their debt to Council.

"It is unfortunate Council has to take this path. However, if Council did not act to recoup the outstanding amounts, it would be unfair on ratepayers who pay their rates in full and on time," Mr Rose said.

The combined value of the 59 properties is $748,300; roughly a quarter of the total outstanding rates and charges owed to Council, which stood at $2.455 million at the end of June 2017.

Among the properties listed for Saturday’s sale, the highest amount outstanding is $75,811 for a property in Armidale. The lowest amount is $2,391 for a property in Brushy Creek. Some of the properties are small parcels of land without dwelling entitlements.

Notices advertising Council's intention to auction the properties will appear in the local press, including details of the properties.

“Property owners are advised to contact Council if they are falling behind in paying rates,” Mr Rose said.

"We can work out an agreeable payment plan or, in some cases, they can apply for hardship rate relief.

"Plus, rates can also be paid on a weekly, fortnightly or monthly basis via direct debit, rather than waiting until the quarterly bill."

All NSW councils have a similar policy addressing debt recovery for unpaid rates.

They are bound by the NSW Local Government Act 1993 (Section 713) which gives councils the power to sell land where rates have not been paid for more than five years or, for vacant land, when the amount overdue exceeds the current land valuation provided by the Valuer General.

Armidale Regional Council’s debt recovery and hardship policy allows it to offer a range of assistance measures. Landowners can submit a form explaining their circumstances and each request is considered by Council on a case-by-case basis.

Mr Rose said the decision to sell properties for unpaid rates at a public auction is a last resort to recover debts to Council.

“It really does not have to end this way. We understand the cost-of-living pressures facing many community members,” he said.

“As well as options for periodic payments to ease the financial burden of a quarterly bill, interest on outstanding amounts can be waived if the landowner’s situation meets necessary criteria in Council’s hardship policy.

“I cannot emphasise enough the importance of contacting Council if you are having difficulty meeting your rate payment obligations.”

Published on 17 May 2018