[Layla Zein]

Good Morning Everyone,

I am wondering if anyone has any experience with back dating rates.

I currently have a situation where a property within our Council area was previously not rateable but sold in April 2014.

Unfortunately this was overlooked and the property continued to be non-rateable till 2018 with only waste charges being issued when the error was picked up.

Upon realising the error a rates notice was issued to the purchaser for the Rates from 2014-2018.

The owner is now in dispute with Council and wants the rates written off for prior financial years due to Council error. As his real-estate agent received the notice and made payment already, he is also wanting the payment refunded.

I am currently in the process of drafting a letter to the customer and at this stage I am inclined to leave the Rates payable however if you could please offer some advice as to whether the property owner has any claim toward Council and if Council is obliged to write off any portion of Rates considering the 603 Certificate that was issued or whether rates remain recoverable.

Thanks!

[Suzi Flynn]

Hi Layla,

You are entitled to levy rates in the year for which the rates are levied or in a subsequent year.

You mentioned a 603 certificate, so it’s impact will depend on when that was issued and whether your certificate appropriately indicated that the exemption status could change upon sale. That could only be a factor for the rating year in which the certificate was issued but would not impact levies for subsequent years.

Council has the ability to make a repayment arrangement to assist the customer and can consider waiving or reducing any interest accrued, including during the repayment period, after the rates have been paid (s564). I would strongly suggest trying to reach an agreement of this type and encourage you to be considerate of the customer’s position.

Suzi

[Layla Zein]

Sorry I did not include that the 603 did not state that the property was non-rateable at the time.

Thanks Suzi!

[Suzi Flynn]

I don’t think you’d have any legal issue levying the rates from date of purchase. The 603 certificate was accurate and disclosed amounts due and payable at the time of issuing. Rateability only changed after the purchase and you’re not making any changes to the amounts payable for periods prior to the certificate issue. You may wish to obtain legal advice.

[Ken Bakon]

Hi Layla,
While I generally agree with everything Suzi has said, I would also recommend your Council develops a policy (and as we have at Canterbury Bankstown), and associated Administration Guidelines. That way everyone, (ratepayers, councilors and staff) have a clear understanding of the process in these cases. It also may assist should any matter end up in Court.
Our Council’s policy and guidelines can be found on this website under the Policies and Procedures tab

Regards

Ken

[Darryl Telfer]

All good advice above. Just to add to this,

s546of the LGA states

How is a rate or charge levied?
(1) A rate or charge is levied on the land specified in a rates and charges notice by the service of the notice.
(2) The notice may be served at any time after 1 July in the year for which the rate or charge is made or in a subsequent year.
(3) A notice that is required to effect an adjustment of rates or charges may be served in the year for which the rate or charge is made or a subsequent year.
(4) The notice may include more than one rate, more than one charge and more than one parcel of land.
(5) It is not necessary to specify the name of the rateable person or the person liable to pay the charge in the notice if the council does not know the person’s name.

In my view s546(2) is the authority to back date the rates to 2014 as you have done – unless (as discussed earlier) Council has previously represented another position of course.

[Author]

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