[Andrew Butcher]

Just in case you have not noticed the following changes have been made to the Local Government Act as a consequence of the State Debt Recovery Act:

Section 566 Accrual of interest on overdue rates and charges

Insert after section 566 (5):
(6) If an unpaid rate or charge is referred to the Chief Commissioner of State Revenue for debt recovery action in accordance with the State Debt Recovery Act 2018, interest ceases to accrue on the unpaid amount under this section on and from the referral date. However, interest may be charged under that Act.
(7) If the council revokes the referral of the amount under the State Debt Recovery Act 2018:
(a) interest starts to accrue again under this section on and from the date the referral is revoked, unless the council otherwise directs, and
(b) any interest or debt recovery costs charged by the Chief Commissioner under that Act are not recoverable by the council.
(8) In this section:
referral date means the date on which the unpaid amount is referred by the council to the Chief Commissioner of State Revenue for the making of a debt recovery order under the State Debt Recovery Act 2018.

Section 603 Certificate as to rates and charges

Insert after section 603 (5):
(6) If an unpaid rate, charge or other amount is referred to the Chief Commissioner of State Revenue for debt recovery action under the State Debt Recovery Act 2018:
(a) a reference in this section to the rates, charges or other amounts due or payable to the council includes a reference to an amount payable to the Chief Commissioner under that Act as a consequence of the making of a debt recovery order in respect of the rates, charges or other amounts, and
(b) the Chief Commissioner must, on request by a council, provide the council with any information about the amount payable to the Chief Commissioner that the council requires to issue a certificate under this section.

Section 695A

Insert after section 695:
695A Referral of unpaid amounts for debt recovery action
(1) Despite anything to the contrary in this Act, a council cannot exercise the following functions in respect of an unpaid rate, charge, fee or other amount (an unpaid amount), if the unpaid amount is referred to the Chief Commissioner of State Revenue for debt recovery action in accordance with the State Debt Recovery Act 2018:
(a) take proceedings to recover the unpaid amount,
(b) accept an amount or a transfer of land in or towards payment of the unpaid amount,
(c) enter into any agreement with a ratepayer regarding payment of the unpaid amount,
(d) write off, waive payment of or reduce the unpaid amount or any accrued interest,
(e) serve on an occupier of land a notice under section 569 in respect of the unpaid amount.
(2) Subsection (1) applies on and from the referral date (within the meaning of the State Debt Recovery Act 2018).
(3) Subsection (1) does not affect the validity of anything done by the council before the referral date.
(4) Subsection (1) ceases to apply if the council revokes the referral of the unpaid amount to the Chief Commissioner of State Revenue under the State Debt Recovery Act 2018.
(5) This section is subject to the provisions of any debt recovery agreement (within the meaning of the State Debt Recovery Act 2018) between the council and the Chief Commissioner of State Revenue.

Note. Under the State Debt Recovery Act 2018 the Chief Commissioner of State Revenue assumes responsibility for the recovery of the debt and can take debt recovery action as authorised under that Act. Applications for time to pay, and hardship applications, can be made under that Act.

Regards,
Andrew

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