Hume residents owe more than $45 million in overdue council rates, with councillors urging households to reach out early for support rather than letting debts spiral.
The annual rate arrears report, presented at Hume’s council meeting on Monday, September 22, revealed 18,623 ratepayers across the municipality were in arrears as of June 30, 2025.
Council is owed $45.75 million in unpaid rates. The figure has climbed by $6.17 million from last year.
Of these, 6357 households and businesses have repayment arrangements in place valued at $19.9 million, supported by council’s rates financial hardship policy which allows struggling ratepayers to make interest-free repayments, with the aim of easing financial pressure and avoiding further penalties.
“This approach is about supporting our community through challenging times while ensuring council can continue delivering essential services,” the report noted.
Cr Sam Misho said overdue rates had become a “chronic issue” since COVID-19 and called on residents to engage with council early on in the process to avoid falling into debt.
“All they have to do is call and make a payment arrangement. I understand they may have financial hardship, but please reach out. Talk to our officers. They’ll help you,” he said.
“Interest is remitted, and it stops people paying unnecessary charges.”
Despite the support measures, more than 5300 accounts with a combined debt of $27.16 million were referred to council’s debt management agency in June after repeated attempts at contact were unsuccessful. Of these, 780 accounts were paid in full, while a further 1025 entered payment plans worth $5.47 million.
Council said the referral process applies only to non-responsive accounts, with pensioners and those already on payment plans excluded.
The report highlighted arrears are concentrated in Hume’s central and northern growth areas, with Craigieburn, Sunbury, Roxburgh Park, Greenvale and Mickleham accounting for the bulk of repayment arrangements. Craigieburn alone recorded 1634 active agreements covering a total of $4.7 million.
Cr Ally Watson said rates were the “foundation” of council services.
“Nobody likes to get a bill, but rates fund local roads, waste collection, community facilities and parks. Often arrears are not unwillingness to pay, but financial hardship,” she said.
Cr Naim Kurt described the arrears as “a canary in the coal mine” of community stress.
“Working families in growth areas are struggling. We need to explore more flexible options to support them,” he said.
Cr Kate Hamley encouraged council to explore alternative payment platforms, investigate incentives for early payments, and review its hardship policy once new guidelines are announced.
“We should take this opportunity to review our hardship policy and make sure that it’s achieving its purpose. And we’re doing all we can to ensure that rates are collected in a way that is equitable and fair,” she said.
“Most people want to do the right thing. A lot of people just can’t.”
While the arrears remain high, Hume’s council believes the trend of more ratepayers entering payment plans is a positive outcome.
“Encouraging early engagement and offering interest-free arrangements reduces the burden of additional penalties and helps residents get back on track,” the report stated.
Council has also reaffirmed its commitment to working with residents to manage debts fairly and compassionately. Flexible repayment options, hardship provisions, and ongoing community engagement through budget consultations and rate notices remain central to the approach.
Councillors stressed that residents facing difficulties should avoid payday lenders and instead contact council to set up a plan.
“These are not just numbers on a page,” Cr Misho said.
“This is people’s livelihoods and challenges. Please reach out.”
