[Michael Cherry]

Hi Susan,
Briefly, the advice we have is along the lines of the effects section 14B (1) and (2) of the VL Act means that even where parcel of land comes into existence after 1 July in any particular year, the valuation of that parcel is made at the 1 July of that year. Additionally, s27B (6) means the valuations of the new lots are inserted in the Council’s current valuation list as at 1 July of the rate year current at the time of the registration of the plan of subdivision.

This satisfies the requirements of s62. I have sent you some additional information also.

Hope this helps.

Mick

[Michael Cherry]

Hi Andrea,
Our Revenue Policy contains the following simple statement.
“Use of land values on newly created property”

“Upon registration of a plan of subdivision or consolidation with the Registrar General, City of Newcastle will rate the property(s) within the plan from the registration date of the Deposited or Strata Plan.”

The basis for rating from the date of registration was predicated on a legal opinion we obtained many years ago. The opinion said something along the lines of that the original unsubdivided parcel of land ceases to exist as an entity when a new plan of subdivision is registered over that land. This means that rates can’t be levied on land which no longer exists – hence waiting until the following quarter isn’t appropriate based on the opinion.

Using the legal opinion as the basis – rating from the date of registration importantly also maximized the revenue we could generate as opposed to quarterly rating.

I trust this helps.

Mick

[Michael Cherry]

Hi Neil,

We cancel the rates on the parent from the date of registration as soon as we receive notification of the registration.

Cheers

Mick

[Michael Cherry]

Hi Tracey,

Newcastle collects date of birth information only over the phone at the time of verbal inquiry. The NAR is updated at this point.

Mick

[Michael Cherry]

Hi Emma,

The latest OLG Circular states:
“ The collection of the first quarter rates instalment (whether a single or quarterly instalment) is due by 30 September 2020.”

The new regulation states:
Cl 413I Payment of rates and annual charges
(1) Despite section 562(3) of the Act, an instalment (whether a single instalment or a quarterly instalment) of annual rates and charges that would have been payable by 31 August 2020 is instead payable by 30 September 2020.

Both say 30 September 2020 is the due date – I can’t see how you can deceive the ratepayer by putting anything other than 30 September 2020 on the notice.

City of Newcastle are proceeding with 30 September 2020.

Hope this helps.
Mick

[Michael Cherry]

Thanks everyone for your opinions. Interesting topic – appears it is a bit of a grey area which is supported by the fact City of Newcastle also have differing legal opinions which support each view.

Thanks again.

[Michael Cherry]

Hi Jason,

Yes mate best wishes for the festive season also.
Newcastle has received many of these objections where a successful objection was lodged against a land valuation where the base date of the amended valuation allows its use for both rating and taxing purposes. The rates levied using the former land value are adjusted by us back to the first year the land value was used. It is immaterial whether the objection was motivated by land tax or rating issues – both outgoings are adjusted accordingly.

Hope this helps.

Mick

[Michael Cherry]

Hi Dave,

We received our G/Val file and yes the file included the PID numbers for each strata child (as was proposed to accommodate FESL). I will contact Michael Smith.

Mick

[Michael Cherry]

Hi Phil, there’s a monthly publication “The NSW Local Government Industry Accounting Newsletter & Financial Management Best Practice Guide” from LG Solutions which explains the change. Within the March edition (page 14 – 22) it references: The amendments to AASB 9 are applicable for YE 18/19. There are 3 issues that Councils need to address in relation to the AASB 9 – Financial Instrument amendments. One of these is a revision as to when prepaid rates (and other statutory charges) are to be brought to account as income.
The change means that Prepaid rates up until now have been brought to account by Councils as income in the year that they were received (as Councils controlled the money). Now however the change to AASB 9 means that prepaid rates & all other prepaid statutory levies and charges will not be recognized until the levy is able to be actually “made”.This means a prepayment received in 2018/19 can’t be recognized in 2018/19. The income can’t be brought to account until the 2019/20 rates are formally made.
Hope this helps.
Mick

[Michael Cherry]

Hi Dallas,

We’ve had Centrepay for around 5 years now – for rate payments only. We only average approx. 400 payments per annum. Like Andrew we introduced it following a circular from the OLG recommending Centrepay as an option to help manage debt and it has hung around since. As you mention most payments are for smaller amounts. It’s cetainly not cost effective but the elected Council thought it was a great idea!!!

[Michael Cherry]

Hi all, I note within the Guidelines the following:
“Council policies should include Informal Dispute Resolution options. Timely mediation to resolve debt informally, prior to filing in court, benefits both councils and the ratepayers. It is effective and efficient best practice.”
It also refers to options for mediation and informal dispute resolution including Community Justice Centres, Professional Mediators and solicitors and Internal Ombudsmen.
Is anyone seriously considering including Informal Dispute Resolution options within their policies? I cannot see in practical terms how in the hell this can work without chewing up a huge amount of Council resources and simply delaying the inevitable legal action which will be required to recover the debt.
Appreciate your thoughts

Cheers

Mick

[Michael Cherry]

Hey Tracey – Newcastle is like Campbelltown – we finish issuing supp notices as at end of April. But process the odd exemption request/category change until the week prior to the Making of the Rate Report to Council is compliled in mid-June.

Cheers
Mick

[Michael Cherry]

Hi Rod,
Newcastle has a $37.00 fee payable for refunds of overpayments. Like Penrith we don’t always charge the fee, but use it to deter serial refund and trivial requests.

The fee is simply recorded in our Fees and Charges annually.

[Michael Cherry]

Hey Trev,
We include this
“Pensioner rebates are subject to the owner being an eligible pensioner for the whole rating year. Should eligibility cease for whatever reason or the property is sold, the entitlement to the reduction ceases on the last day of the quarterly instalment period during which these circumstances occur. In addition the amount of the reduction for the remaining quarters becomes due and payable.”

Mick

[Michael Cherry]

Hey Adele,

Not sure of all the facts but I have to agree with James on this one for two reasons really:

1. There was never any liability by Mr A to pay the rates in terms of S560,

2. I am no lawyer but I think that decision within David Securities Pty Ltd v Commonwealth Bank of
Australia about unjust enrichment is relevant – the judgement goes along the lines of
“… the payer will be entitled prima facie to recover moneys paid under a
mistake if it appears that the moneys were paid by the payer in the mistaken
belief that he or she was under a legal obligation to pay the moneys or that the
payee was legally entitled to payment of the moneys. Such a mistake would
be causative of the payment.”
Based on these two factors I think Mr A is entitled to restitution for the amounts paid by mistake and that Council has been “unjustly enriched”.
I can’t find any basis for the repayment of interest however.

Cheers

[Author]

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