At Lake Macquarie City Council, we apply the following process when a Section 603 Certificate is issued with a credit balance (generally over $200):
Process:
An internal note is placed on the rate assessment advising that a 603 Certificate has been issued with a credit balance.
The note includes the credit amount and the date the certificate was issued.
Internal Control:
We include a standard instruction that if the vendor requests a refund, written authorisation must first be obtained from the purchaser’s solicitor. This ensures the credit has not already been adjusted in the settlement figures.
603 Certificate Notation:
We also include the following note on the certificate:
The ratepayer has been advised of the credit balance. The credit will remain on the account until a formal refund application has been received and processed.
Reasoning:
This approach helps prevent duplicate payments or incorrect refunds where settlement adjustments may already account for the credit.
Happy to hear how other councils manage credits on 603s — particularly around thresholds of vendor making periodic BPAY payments which we also note on the 603 and send a letter to the vendor to help our refund controls.
