[Cherie Muir]

Hello RP’s
I’m hoping for some clarity …

If a council under S570 accepted transfer of land in lieu of rates and charges owing, what is the correct accounting to settle the arrears? Does the council get to write-off the rates and charges or do they have to pay the rates an charges because they are now the owner? There is no impact on council’s bottom line either way, but I want to know which way is the correct way.

The wording in S570: “A council may accept a transfer of the land in respect of which rates or charges are or accrued interest is due and payable in full satisfaction of the rates, charges or accrued interest.”

I’m thinking ‘full satisfaction’ means write-off but can’t find any clarity in the Act or Regs to prove this. Reg 131 doesn’t mention s470 specifically. Of course if written-off the amount would need to be reported in the Annual Report.

Your thoughts would be appreciated. Thanks in advance.

Cherie

[Robert Hay]

Hi Cherie

In my opinion once the land is transferred to Council I think Section 571 (3) is applicable
“A person who becomes liable for rates and charges levied on land is liable to the council for a rate or charge owing in respect of the land even though the person was not so liable when the rate or charge was levied.”
I believe Council is now liable and should pay the rates not write them off.

Robert

[Cherie Muir]

Oh good one Robert. That’s one for paying and it certainly makes good sense.

Thanks heaps
Cherie

[David Grima]

I agree with Robert.

[Darryl Telfer]

If anyone has been through this process in recent years, would you mind contacting me directly please? Interested in understanding the approximate costs Council would incur in the transfer process, conveyancing costs (assume it is a little different to a normal sale/purchase transaction, stamp duty etc – aside from the write off of any residual rate debt of course.
And other information that might assist.
Thanks in advance.
Ph 08 8083 8914 or email telferd@centraldarling.nsw.gov

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