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Purpose

To assist it is the decision making functions relative to the operation of the rate concession provisions contained in the Act.

To provide guidance to the community as to the grounds upon which a person or body is, or may be entitled, to defer rates, and the matters that the council will take into account in deciding an application for a deferral.

Scope

This Policy applies to those Ratepayers who are suffering financial hardship or would suffer financial hardship if they paid the full amount of rates and charges for which they are liable.

Definition and Terms

Deferment - means that the rate relief granted is deferred for recovery at a later time either when the ratepayer’s circumstances change, or when the property is sold or ownership transferred. Deferred rates remain a debt against the property. Interest penalties do not apply to deferred rates.

Financial Hardship - means difficulty in meeting basic costs of living and the payment of rates levied.

Income Test - means the annual net income or deficit determined from the applicant’s statement of income and expenses related to basic living needs.

Legislation and Reference

NT Local Government Act 2019

Policy Statement

Types of Rate Concession

Pursuant to section 248 of the Act a ratepayer may be granted a deferment in whole or part for the payment of rates on the grounds of financial hardship if the person has established to the Council’s satisfaction that they will suffer financial hardship if the deferment is not granted. An application should be made in writing.

Financial Hardship of Ratepayer Related to a Residential Property

1. A ratepayer (as a natural person) demonstrating financial hardship can apply for a concession to defer the payment of part/all of the rates levied providing that the application is for the ratepayer’s principal place of residence.
2. A concession granted shall not include relief from charges levied against the property for services provided by the Council, e.g. garbage collection charges.
3. An application for a concession applies for one financial year only, and a new application is required for subsequent years.
4. An occupier of a residential property may make an application under this section providing the owner’s consent has been obtained.
5. An application under this section should be made in writing and include a completed application form for “Relief from Payment of Property Rates on Grounds of Financial Hardship”, detailing the ratepayer’s income and expenditure.

Assessing Financial Hardship

When a deferral is approved by council the:

1. deferral amount is to be paid over 12 months at a minimum rate of 1/12 of the amount owing each month or
2. a whole or part of the deferral amount is recovered on sale of the property, with the remainder to be paid over 24 months.

Timing of Application

A deferral does not apply retrospectively to payments outstanding from an instalment date that has passed.

A person liable to pay rates receives a rate notice 28 days before the date to make payment.

An application for a deferral must be received before the due date, to apply for a concession for rates levied for that financial year. Applications received after expiry of the date will not be considered for a concession for that financial year.

Review History