2020-2021 Interest rate and boarding houses

The penalty interest rate for unpaid rates and charges has been split over two six month periods;

from 1 July 2020 to 31 December 2020 = 0%
from 1 January 2021 to 30 June 2021 = 7%

The tariff rates for boarding houses has also been released in the same Government Gazette notice which is attached.

Gazette 104 22 May 2020

Waiting on the OLG to advise the maximum fee for a Section 603 certificate, will post when received.

Regards,
Andrew

I have been discussing the new interest rate supplied by OLG and it seems there are two ways of interpreting the interest charges.
Having a 0% from 1/7/20 – 31/12/2020 is the easy part and gives ratepayers 6 months to catch up but when we set up the interest rate from 1/1/21 for the 7% are we able to backdate interest on any arrears still outstanding OR do we commence the interest rate from the 1st January and not let it back date any interest.
I’m more inclined to think that the OLG mean that interest should only apply from the 1st January and not be backdated but would appreciate how other Council’s view this.
Mary

How would you show this on the rate notice?

I have always included the interest % on the rate notice but looking at the regulations perhaps only a statement is required that – if payment is not made on or before the due date or dates, interest accrues on the overdue amount.

However, I would think there is an expectation that the 0% for the first 6 months is conveyed to the rate payer.

Cheers

Glenn