[Ron Peters]

Hi Dani,

We have conducted and assisted several Councils with their s713 sales recently ie , Tenterfield Shire Council, Blayney Shire Council, Cabonne Shire Council, Carrathool Shire Council and Central Darling Shire Council – we have an auction on this Friday 19 March 2021 for Coolamon Shire Council and one in June for Junee Shire Council.

There are 2 ways that I see to do this, both using s713. Although you can approach the owners before you commence a s713 sale, under s713 there is a time line.

1. s713 Sale of Land for Unpaid rates – Once advertised a contact letter would be sent to the adjoining owner/s to see if they were interested in attending the auction to bid on the relevant block. Although there is $6500 owing that doesn’t stop Council from selling the block and then being able to write the residual off; or
2. Possessory title – Council can talk to the adjoining owner about making an application for possessory title – If there is interest and the neighour meets the criteria, which my understanding is they have had access and use of the land for a least 12 years. Of course they would be guided by their solicitor. The other proviso is the arrears are to be paid, by which Council will withdraw the property from the auction list thus giving the neighbour time to make the application.
Possessory title is not cheap but it is one way for the neighbour being able to secure the property and not have to chance the auction.

Regards
Murray Crane
Outstanding Collections
M/N 0409-999-127

[Ron Peters]

The Minister’s reported response.

Minister responds to IPART local govt reports

Regards,

Richard
Richard McLean

[Ron Peters]

Hi Skye,

We advise clients that notifying the Ratepayer/Customer in writing of Council’s intent to transfer the balance is sufficient action to allow Council to transfer the balance.

To date we haven’t encountered a response from a Ratepayer/Customer in the negative, i.e. requesting that the balance is not transferred.

Kind regards

Richard
Richard McLean
0434 222 032

[Ron Peters]

Hi Robert,

We agree with you – Section 327 of the Biosecurity Act lets Council register a charge. In practice that can take time, which may be a problem if a 603 certificate is ordered immediately prior to settlement, so Council may wish to place a caveat on title while waiting for the charge to be registered.

And prior to a caveat, we have had Councils interpret Section 603(1) and (3)(c) to allow them to err on the side of caution and include on the 603 Certificate the amount due or payable to council, stating the work carried out on the land by the council and the cost that may be recovered. In a notable case last week the Cost Recovery Order (noxious weeds removal debt) was paid in full on settlement of the property sale.

Cindy’s question might refer to the earlier time period between the making of a Biosecurity Direction (S128) and the making of a Cost Recovery Order (S321), which our opinion covers also.

BEst wishes,

Richard
0434 222032

[Ron Peters]

Hi Cindy,

We have provided advice to some Councils on this change – now that the debt is against the person not the land – and they have successfully recovered the Noxious Weed eradication debts when the property sold.

Our advice describes the law changes and the process to follow, including what you include on a 603 certificate when recovering the cost to eradicate Noxious Weeds on the land following a person’s failure to comply with a Biosecurity Direction.

Will it be too late for your requirement if I send you the paper this afternoon?

Kind regards

Richard
Richard McLean
0434 222 032

[Ron Peters]

Hi Adele,

Yes the bottom half of Page 28 relates to Local Land Services, but the top half of the page carries on from P27 which changes a number of other sections of the LGA not specifically related to Sale of Land for unpaid rates.

The change in question at the top half of P28 replaces S715 (1) on advertising the Sale of Land for Unpaid rates.

We hope you enjoyed another of your remarkable Rates Outstanding % results in Kiama again in the 17/18 year!

Kind regards

Richard
0434 222032

[Ron Peters]

Hi Maria,

By ‘notification’ do you mean a 603 Certificate was issued but the 603 certificate did not show the K&G costs? If so, then we suggest the answer to your question may depend on the timing of the work the cost being recoverable, see s603 (3) (c) of the Act.

As Simone suggests above, which one of the following 2 cases applies:

Either – if at the time of the S603 certificate the K&G work had NOT been carried out on the land by the council and the cost was NOT recoverable from the owner or occupier for the work – then the new owner will be liable to pay the costs.

Or – if at the time of the S603 certificate the K&G work had indeed been carried out on the land by the council and the cost was already recoverable from the owner – then the new owner would have a case to argue for no liability.

If the later case applies, then to be pragmatic the size of the K&D debt might guide the action you take; if the debt is small you may wish to write it off, or if it is substantial we would normally give more formal legal advice.

If the former case is true, then we would agree with Ian that the new owners are liable. We manage a similar matter where an owner was charged for K&G. The owner then sold the property to his parents (without a 603 certificate) apparently hoping to avoid payment of the debt. The new owners/parents have been invoiced for the debt and are now paying under a payment arrangement offered by Council.

Best wishes

Richard McLean
0434 222 032

[Ron Peters]

Hi Kerry,

A couple of people who might know, and are within a couple of hundred Kms of you…
Central Tablelands Water – Peter McFarlane – 02 6391 7202. Peter is Director Finance and Corporate Services but he might direct you to the best person.
Goldenfields Water – Tony Goodyer runs operations – 02 6977 3200

Best wishes.

Richard
Richard McLean
02 9545 3115

[Ron Peters]

Thanks Matthew,

We might present some of the results of the research and modelling (on the likely impact of the FESL on Rates Recovery) done during the lead up to FESL.

If anyone else is making a submission, would you be so kind as to let us know so we can give you our data if it supports your case?

Many thanks,

Richard
Richard McLean
02-9545 3115

[Ron Peters]

Hi Dallas,

We researched the process in detail last year, including process details plus useful nuances and insights from the Sheriff’s Office.

Very happy to share with you if it saves time for you and speeds up your research.

I can drop in a briefing doc at a convenient time to you.

Best wishes,

Richard
0434 222032

[Ron Peters]

Hi everyone,

Dallas’ post raises a couple of interesting questions. If Bankruptcy is de-stigmatised, as the Government intends it to be, and becomes more ‘popular’ then:

1 – How can Councils use Bankruptcy and still preserve their effective security over the land granted by S550?

2 – How will Councils choose between using Bankruptcy, S713, Sheriff’s Sale, or Winding Up to gain leverage from the security over the land?

We have been discussing this with clients for a little while and have prepared a briefing guide answering both questions.

We’d love to share the guide with any council interested, please msg us here or at richardmc@oscollections.com.au and we’ll give you a copy.

Best wishes
Richard
0434 222032

[Ron Peters]

Congratulations, and very best wishes to new Executive!

Richard McLean
0434 222032

[Ron Peters]

Hi Emma,

Following Trevor’s lead… we just checked with Upper Lachlan which has about 10 wind farms. They advise there was initially some discussion about the Wind Farms’ categorisation, and it was agreed they are business. They are currently being rated business.

Hope this helps? Please let me know if you’d like an introduction to someone there.

Kind regards

Richard
Richard McLean

[Ron Peters]

Hi Brigitte

We think the answer depends on whether the remaining money is intended to be paid to the daughter or the owner.

If it is intended to be paid to the owner, then we believe the usual ID that Council requires to share confidential information with the authorised representative of a ratepayer would apply.

If the remaining money is intended to be paid to the daughter, we recommend the following two actions, plus seeking an opinion from Council’s legal advisors, before releasing the funds:
1 – The authorisation by the owner needs to be formal declaration, perhaps a Statutory Declaration under the Oaths Act, which explicitly authorises payment to the daughter.
2 – At least 100 points of ID from the daughter.

FYI: DHS have a form to nominate a payee for centrelink payments here if it helps https://www.humanservices.gov.au/individuals/forms/ss313

We hope this helps a little?

Richard McLean
0434 222032

[Ron Peters]

If anyone else would like a good example of an annual rates notice separating due dates for arrears and first instalment, please post here or email me and I’ll send. richardmc@oscollections.com.au

best wishes

Richard
0434 222032

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