Reply To: Changes to Local Government Act – COVID19
Just my view FWIW. Its new to all of us and I am sure there are a lot of different opinions.
The legislation clearly places additional (legislative) onus on Council to ensure legal action is the last available option. As usual, more legislation means more work – but we are in an unusual situation at present.
As Anne has suggested, there doesn’t appear to be a definition of “proceedings”.
Looking at the legislation (a dangerous but sometimes necessary pastime);
1. S 747AB refers to commencement of proceedings for the recovery of a rate or charge under s 712
2. S 712 (3) states “In any proceedings for the recovery of a rate or charge, a court may decide any matter that is called into question and that is relevant to the determination of the proceedings, even though the matter would otherwise be beyond the court’s jurisdiction.”
To me this (s 712 (3)) indicates that “proceedings” in s 747AB means court/legal action so I would not be doing anything that mentions court action, unless Council has considered the 4 points at s 747AB (a) to (d) i.e. arrangements, financial counselling, mediation, deferral or waiver etc.
What Andrea suggests re a demand letter being a Notice of Intent is valid – if the demand states legal action will follow then the demand is effectively the “commencement of proceedings” (and if you aren’t going to take legal action then don’t threaten it).
On the other hand, I don’t believe Council’s should be prevented from sending reminders and asking for payment – it would be irresponsible to not do these things. However s747AB effectively enforces the concepts of engagement that are promoted through the OLG Debt Management and Hardship Guidelines. Unless that engagement occurs (or all reasonable attempts to engage have failed), there is no way Council staff could report to Council that the 4 points under s747AB have been properly considered and recommend to Council that “proceedings” commence (via demand / Notice of Intent).
So what do we do until 26/9/2020 (or later date as regulations may determine)??.
I’d suggest still sending reminder notices then start engaging with any ratepayers that still haven’t paid or made an arrangement within the allowed time – and effectively check off the 4 points at s747AB (arrangements, financial counselling, mediation, deferral or waiver etc) before getting Council endorsement to go a demand/notice of intent and beyond (if that’s appropriate for you/your Council). If you have a relief package an/or hardship policy/procedure, then you are in a better position to consider the 4 points under s747AB.