[Suzi Flynn]

Hi everyone,

The lastest FESL Operating Procedures Manual – Release 4 – issued this month talks in section 9 and 10 about Councils paying OSR by setting up a direct debit.

Does anyone know if this is stipulated in the Act or will be in the Regs? I’m wondering whether they have the power to compel Councils to pay this way or whether it’s just their preference. The City of Sydney does not currently make any payments by Direct Debit and are not keen to do so.

Thanks,
Suzi

[Andrew Butcher]

Hi Suzi
You are correct there is no formal requirement in legislation or regulations. We wont be allowing direct debit in the form announced in the manual.
The advice I have been provided by our finance cash book staff is that this is outside of our policy and the nab wont allow the transaction to occur.
We have another workgroup meeting scheduled for early May and this matter will be discussed then.
I hope this is helpful.
Regards,
Andrew

[Robert Hay]

Hi Everyone

This is being sent out by LGNSW this morning

Attn: Mayors, Administrators, Councillors, General Managers, Interim General Managers

LGNSW went in to bat with NSW Treasury and the Office of State Revenue (OSR) this week about letters received by councils from the OSR on the Emergency Services Levy (ESL) and the NSW Government’s Fire and Emergency Services Levy (FESL).
A big thank you to Central Darling Shire Council for being the first to alert us to this issue.

The letters were about the payment of these two levies by councils to OSR and the use of an automatic “direct debit sweep”. However, the ESL and FESL were mixed up, and the direct debit scheme raised alarm bells with LGNSW and councils.

We are very pleased to report that OSR and NSW Treasury have now agreed to issue a clarification next week. OSR will collect both the 11.7 per cent ESL and the FESL in future. As a direct result of our advocacy, OSR and NSW Treasury have also committed to offering councils an alternative payment method for both levies, rather than automatic direct debit, for those councils that require it.

All of this just serves to underscore the logic of our sector’s position that the ESL must be rolled into the FESL so these levies are collected just the once, and transparently. The situation we have now is confusing and inefficient. We will talk again with Treasury on these matters next week and will keep members updated. Read more. http://www.lgnsw.org.au/files/imce-uploads/386/UPDATE%20ON%20ESL_FESL%20Link%20%283%29.pdf

[Carla Mete]

HI,
I have a question with the FESL and transferring funds to the OSR.
The FESL will have 4 instalments. On collecting the funds, we may have some people pay in full for the year, some in instalments and some not at all.
Will we be transferring only the funds collected at the end of each instalment period? And if so, what if a ratepayer pays in full for the year? do we transfer their whole FESL payment or just that instalment amount?
Thank you

[Robert Hay]

Hi Carla

Councils will remit to the OSR what they have collected at that point in time. So if someone has paid in full within that instalment period you remit the whole amount of FESL paid by them.

Robert

[Carla Mete]

Ok that’s what I thought you would say.
So what if they pay in full at the start of the rating year, and then part way through the year they are granted a pension concession. How will they claim their percentage of the rebate back for that rating year?

[Robert Hay]

My understanding is:

The $50 rebate is a reduction of the FESL owed by the pensioner. So if they have paid in full and apply for a pensioner concession with an effective date of say 01/08/2017 they would be eligible for a Statutory rates rebate of $187.50 and a FESL pensioner discount of $37.50. You would apply this to the rate account it goes into credit and you refund to the ratepayer $225.00. At the same time your reconciliation file that you send to OSR would let them know that you have applied a discount to that ratepayers account meaning they (OSR) would receive an amount less $37.50 for that period due to you granting a rebate against the FESL.

[Carla Mete]

Thanks Robert. I appreciate your responses

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