[Emma Murphy]

Hi,

Currently trying to do the leg work for the powers above….

They are thinking of applying a discount to ALL ratepayers….

Just wondering based on the below if you think there is scope in 2020/21, and does this comply with section 563 or would it better be prosed under section 356?

(but then maybe 356 doesn’t work because it would have to be applied to all ratepayers regardless of whether or not they paid)

*Council will increase rates by the max rate peg
*Apply a discount to all ratepayers who paid in full by 30/6/21
*The discount amount would be ie 2.6%

Hope all that makes some sort of sense.

[Tracey Walker]

Morning Emma,

At Wollongong, Council on 6 April resolved that we would offer an interest free period deferring the 4th instalment for 2019/2020 rates on all rate accounts (both residential, business, farmland and mining) until 31 August 2020.

We are considering the below options available post 31 August:
1. the deferred 4th instalment amount be split across the 4 quarters of the 2020/2021 rates
2. proposed discount (under s563) for upfront paid in full by 31 August (dependant on point 4)
3. possibly not taking up the full 2.6% rate peg (not sure what the % will be if any)
4. since the OLG circular last Friday (17/04) a delay of 2020/2021 notices by one month

At this stage these are only possibilities and Council has not made any formal decision either way as yet.

[Robert Hay]

Hi Emma

What your proposing with applying the discount and payment in full by 30/06/2021 is best covered by Section 563. The only suggestion I’d make is payment by 31/05/2021 to give you time to apply the discount.

Tracey with your point 1 what section of the act allows a payment due 31 May (Section 562 (3)) to be re apportioned over the following year’s rates and charges especially when you take Section 562 (2) into account which tells you how to calculate rates and charges instalments?

[Tracey Walker]

Robert,

Yes you are correct, there is no section within the Act that will allow us to split the 4th instalment over the 2020/21 rates.

Wollongong has taken the view that it is in the best interest of the community for those that are already experiencing hardship, not to place them into further hardship and therefore split the amount equally across the 2020/21 rates.

[Robert Hay]

Hi Everyone

Just to clarify my response regarding Section 563, I believe that ratepayers would still be required to pay their rates and charges as outlined in Section 562. I’m also dis-regarding the word prompt in the Section title and reading the words below:

563 Discount for prompt payment in full

A council may discount the amount of a rate or charge to such extent as it determines if the whole of the discounted amount of the rate or charge is paid by a date nominated by the council.

[Andrew Butcher]

Hi Emma

In regards to the granting of a discount I would be cautious, as Robert has pointed out the Act stipulates prompt payment in full.

The concept is really good (in my view) because it creates a pseudo amnesty on all unpaid debts, but alas with the GVAL ratepayers rates may still increase by more than the 2.6% which I don’t think will provide the outcomes you are looking for.

This one of many examples of people thinking outside the box and challenging the legislation.

Regards,
Andrew

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