Melton council is still chasing about $5.5 million of unpaid rates from the past financial year, a forum heard last week.
A panel, made up of community experts and an Australian National University lecturer, discussed the far-reaching effects of mortgage stress at the launch of the Mortgage Wellbeing Service. The service has been initiated by the Brimbank Melton Community Legal Centre.
Christine Levy, representing Melton council, told the forum about 5 per cent of rates from the past financial year were in arrears, adding to mortgage stress.
Council finance manager Shan Thurairajah confirmed to
Star Weekly that the arrears for rates, not including the fire services levy, was just under $5.5 million.
“People who discuss their situation with council and are able to make arrangements will suffer no ongoing consequences provided they meet the arrangements put in place,” Mr Thurairajah said.
“Unpaid rates will incur interest charged at the prescribed rate and should it continue further, [it] can be brought before the magistrates court.” The chief executive of centre parent body Community West, Rachna Muddagouni, said the centre and Melton council had established a “very positive relationship” to support people through council’s hardship programs.
“Rates arrears are almost always going to be a symptom of mortgage stress,” Ms Muddagouni said. “In addition to working with clients on any other causes and impacts of mortgage stress, we can help them to make hardship applications to council and let them know about other hardship options with their energy, water or mortgage.”
Ms Muddagouni said the “logical conclusion” the centre drew was that homeowners experiencing difficulty paying rates were also experiencing mortgage stress, which the Mortgage Wellbeing Service views as a health, legal and social issue.
Asked if rate-capping would have an impact on unpaid rates, Mr Thurairajah said he didn’t believe it would.
Ms Muddagouni said she did not have an answer to that question.
