Council rate debt on the rise

(Tom Rumble/Unsplash)

Liam McNally

The amount of households owing property rate fees to Melton council more than tripled within nine months between September 2022 and June.

At September last year, 4675 households owed council a combined $11.33 million dollars in rates and by June 30 this figure jumped to $22.8 million from 14,416 properties.

The latest figures from September 30, show rates debt has dropped since June, however the number of households owing is still almost double what it was 12 months prior.

More than $16 million was owed in rate debt from among 8168 properties on September 30 this year.

Melton council organisation performance director Peter Leerson said residents have told council that increasing interest rates and cost of living increases to items such as utility bills, food and petrol are the main causes of any financial pressure they are feeling.

Mr Leerson said the council is committed to supporting its rate-paying residents who are experiencing financial difficulties, through payment arrangements or short-term extensions and understanding their circumstances to support them in the most appropriate way.

“Anyone experiencing financial difficulties can speak with us on the financial assistance options that are available.”

Similar patterns have emerged in nearby Wyndham and Hume councils.

A Wyndham council spokesperson said the number of households owing rate money has actually decreased since 2020, however the amount owed has risen from $18.8 million to $34.9 million in June this year.

Hume council has recorded a 60 per cent increase in rates owed since 2020, as of September 30, the value of rates outstanding was $54.50 million and at the same time last year it was $42.75 million.

Hume councillor Joseph Haweil blamed the increase in council rate debt on bank interest rate rises.

“[This is] through the Reserve Bank and its apparent desire to crush working people in order to achieve the economic outcomes it wishes to achieve.”