Council Rates & Charges Q & A

Rates are now due by four equal instalments. This change is intended to provide greater flexibility to ratepayers and alleviate financial burden of needing to pay upfront.   

Instalment due dates are: 

31 August 2024   30 November 2024   28 February 2025   31 May 2025 

 

Yes!  Council will continue to offer a discount for those who elect to pay early. 

The discount for 2024-25 is 3.75% which is reduced from that offered previously (5%). 

The discount for early payment is a significant cost to the Council and represented the highest discount rate offered by a Tasmanian council prior to the reduction. 

The reduced discount rate will still represent the second-highest discount rate for a council in Tasmania. 

It is important to note that the Council determines the level of the early payment discount it will offer when setting its rates each year. 

The Budget Estimates provide for a 5.86% increase in the General Rate.  For a medium residential property, this equates to around $86 per year ($1.65 per week). 

The higher than CPI price increase is essential to ensure that the Council returns its operating position to a sustainable one. 

The Council has increased the minimum amount payable from $335 to $355 (or 5.97%). 

Rate increases in line with the Consumer Price Index (CPI) are important for the Council’s financial sustainability.   

Over the past five years, Council rates have increased by 17.3% for the average residential property.  During the same period, the comparative CPI rate for Tasmania (Hobart index) increased by 20.0%.  This has contributed to the Council’s underlying operating deficit position over the past five years. 

The cost of providing waste services is closely related to the volume of waste that goes to landfill.   

The Waste Service Charge will increase from $280 to $300 for 2024-25.  This represents an increase of 7.1%. 

The increase is required to cover the additional costs of providing the kerbside collection services, and the flow through impact of the second increase in the Tasmanian Landfill Levy which increases from $21.36 per tonne to $44.88 per tonne in 2024-25.  The Landfill Levy is set by the state government and landfill operators must pay the state government. 

The Council manages approximately 3,500 tonnes per annum of waste product from kerbside waste that attracts the Levy.  

The levy does not apply to recoverable materials such as Green Waste, Metal recycling, clean soil, bricks, concrete and timber. 

Council must balance its service levels with the needs and expectations of the community and set appropriate levels of tax to adequately fulfil its roles and responsibilities.   

Rates and Charges are an important source of revenue for Council, representing some 54% of the total revenue estimated to be received by Council in 2024-25. 

The rates and charges are set each year by Council in close consultation with management.  

Rates are used to fund and maintain a wide range of Council services and facilities.   

Council’s annual expenditure on services to the community including maintaining and replacing our existing assets is $40m.

We have created the following brochure to explain 'Where do my rates go'?

Central Coast continues to have lower rates overall compared to others in our region, and our choice of revenue sources is not as comprehensive as our neighbours, for example, who expect several million dollars in revenue in car park fees. Car parking in Central Coast remains free. This is a simple example of how each council is unique. While we share many similar aspects in terms of operations and service delivery, our inputs, and therefore outputs, will vary. 

This Council has for the past five years had operating deficits.   This is where our income is not enough to cover the cost of delivering current services. 

The Council's operating budget for 2024-25 is expected to remain at a small operating deficit of $240,000.  Whilst this is not ideal, we are comfortable with the fact that it is the right decision for our community currently and reflects a concerted and systematic effort to reduce operational costs while addressing the underlying deficit. 

The Budget Estimates allow for heavy investment in capacity building and growth.  The Council has worked hard to contain costs and keep rate increases to the community as low as possible without compromising on investing in our future. 

As with all investments, we understand that the return on initial investment (ROI) in the form of efficiency dividends will take time. 

The Council will continually seek out opportunities for efficiencies and keep costs as low as possible. 

Council has invested resources in our current budget that will enable us to deliver on the things that matter to the community and enable us to deliver on our promises.  The Council has invested in increased capacity to deliver value and improve the health of the organisation to make it a better.    

Some key areas that Council will focus on include: 

Service Level Reviews: The Council will be undertaking a review of the services we perform to ensure we are balancing community expectations against the levels of service we currently provide.   Efficiency Measures: We are continually seeking ways to improve efficiency and reduce costs without compromising the quality and level of services provided.  Community Input: Engaging with the community through consultations and feedback sessions through our regular community conversations to prioritise spending in areas the community value and address key concerns.  Improved IT Processes: Council are investing in IT software and systems to ensure they remain current to cope with modern cyber security threats and protect information held.  Council has included provision to undertake a review of its current systems and processes to identify opportunities for automation and efficiencies.  Supporting the Local Economy: Investing resources focused on Economic Development activity.  The Council will foster economic growth through identifying investments in local projects and services will stimulate the local economy by creating jobs, and encouraging spending within our community. 

The council is making significant investments in capacity building to take advantage of growth opportunities and build the capacity of our organisation to better deliver on our promises. 

This includes a realignment of departmental branches, an increase in training and development, and the addition of new team members with specific expertise.  

For instance, we have appointed an experienced Economic Development Coordinator to ensure we take advantage of growth opportunities, and a Communication Coordinator to better engage and communicate with the community.   

We have also made additional investments in our safety and infrastructure teams. These investments are aimed at improving the council's capacity to deliver services and better deliver on our promises.   

We recognise that a rate increase can pose financial challenges for some residents. If you are experiencing financial hardship, please contact our Rates Office on 03 64282900 to discuss an agreed payment plan, or for information on what assistance programs are available. 

Yes – a payment plan can be arranged to assist ratepayers making payments. 

Payment plans can be made on a frequency and amount that suits ratepayers budget, but the plan must cover your current rates balance by 31 May to be eligible.   

Payment Plans may still incur interest charges on any overdue portion of rates. 

To avoid interest charges, the payment plan must be sufficient to cover the quarterly instalment due date obligation. 

If a ratepayer has an agreed payment plan, Debt recovery action is put on hold by the Council. 

From 1 July 2024 Council will be charging interest on overdue balances. 

Ratepayers who cannot pay their balance by the due dates are strongly encouraged to set up payment plans by contacting our rates office.   

Interest will be charged if any of the due dates are not met.  The overdue Interest rate is as prescribed under section 128 of The Local Government Act 1993 and is calculated daily and charged at the end of each month. 

Ratepayers will continue paying interest on overdue rates and charges until we receive full payment of the outstanding amount. 

The introduction of interest charges was a difficult decision.  There is a cost to the Council in debt collection activities including staff time and effort applied to debt collection and production of reminder notices etc.      

In the past, there has been no penalty for late payment which means that all ratepayers have paid for the cost of carrying and chasing overdue accounts.  

The decision aligns with the goal of encouraging timely payments and ensuring equitable treatment of all ratepayers.  

The charging of interest charges brings Central Coast in line with the majority of other Tasmanian Councils, including our neighbouring Councils at Devonport and Burnie. 

Any payments made on outstanding rates and charges are allocated in this order: 

Legal costs incurred on any debt recovery action  Interest  Arrears  Current Rates and charges 

The Council recognises cases of genuine hardship requiring compassion in special circumstances.  Ratepayers that are experiencing difficulty in paying are encouraged to contact the Council’s Rates Officer.   

Interest charges may be considered for relief or waived under limited circumstances.   

Requests for relief must be in writing, addressed to the Chief Executive Officer and will be considered on a case-by-case basis. 

Consideration will be given to: 

Genuine Financial Hardship: Ratepayers experiencing significant financial difficulties may be eligible for an interest waiver upon proving supporting evidence in line with the Council policy. 

First Time Offence: Consideration will be given to those ratepayers who have incurred charges for the first time and have a history of good payment behaviour including timely communication with Council.   

Financial hardship is considered to exist when a ratepayer is unable to meet basic requirements, including food, clothing, medicine, accommodation and children’s education. 

This hardship may occur as a result of illness, long-term unemployment or the death of a partner or immediate family member.  

Ratepayers who are in a position of hardship (financial or other) and unable to meet the terms of a payment plan may be eligible for Financial Hardship assistance in line with the principles and requirements of the Council policy.   

A copy of the policy can be found on the Council website: 

https://www.centralcoast.tas.gov.au/wp-content/uploads/2020/06/Financial-Hardship-Assistance-Policy.pdf 

Financial hardship applications for rates deferrals are only available to owner-occupiers of residential or primary production properties. 

Council will consider the following methods of rate relief:  

Postponing rate payments  Remission of late payment penalties or interest  Remission of rates 

Hardship applications must be submitted in writing to the Chief Executive Officer who will consider on a case-by-case basis. 

There are a number of not-for-profit and government funded organisations that can assist with financial assistance and budget planning services.  Ratepayers are encouraged to reach out if they are experiencing financial difficulty. 

Resources: 

National Debt Helpline Phone: 1800 007 007 Website: https://ndh.org.au/ 

The Salvation Army Phone: 03 62081488 Website: https://www.salvationarmy.org.au/need-help/financial-assistance/ 

Anglicare Tasmania 

Phone: 1800 243 232 

Website: https://www.anglicare-tas.org.au/financial-counselling/ 

Rural Financial Counselling Service Tasmania 

Phone: 03 62 725 992 

Website: www.rfcstasmania.com.au