[Peter ODonnell]

Interested in what Councils are doing with issuing 603 certs that have credit balances, sometimes large amounts.

Junee Shire recently issued a certificate which was in credit by 2 years rates. The property was being sold by a bank for non payment of the mortgage.

• This topic was modified 4 months ago by Peter ODonnell.

[Srisa Heffernan]

We issue them as normal – sometimes the parties conveyancer contact us to request that we refund the vendor as the purchaser doesn’t have the funds to pay out the vendor for the credit – in which case we make them get a new s603 after the refund.

[Deborah Blinman]

Hi Peter

For credit balance over $100 we ask the vendor to complete a refund application and refund before certificate issue, unless the purchaser’s advises they are happy to proceed to certificate issue with the credit (as essentially the purchaser will have to cover the value of the credit on settlement).

[Elizabeth Fenning]

At Lake Macquarie City Council, we apply the following process when a Section 603 Certificate is issued with a credit balance (generally over $200):

Process:

An internal note is placed on the rate assessment advising that a 603 Certificate has been issued with a credit balance.
The note includes the credit amount and the date the certificate was issued.

Internal Control:
We include a standard instruction that if the vendor requests a refund, written authorisation must first be obtained from the purchaser’s solicitor. This ensures the credit has not already been adjusted in the settlement figures.

603 Certificate Notation:
We also include the following note on the certificate:

The ratepayer has been advised of the credit balance. The credit will remain on the account until a formal refund application has been received and processed.

Reasoning:
This approach helps prevent duplicate payments or incorrect refunds where settlement adjustments may already account for the credit.

Happy to hear how other councils manage credits on 603s — particularly around thresholds of vendor making periodic BPAY payments which we also note on the 603 and send a letter to the vendor to help our refund controls.

[Author]

Posts