Hume council has developed a new draft rates policy to lend a hand to residents struggling financially, which will be open for community feedback until October 13.
The draft Rates Financial Hardship Policy is aimed to help residents through payment arrangements and/or a short or long-term deferral of rates.
At a meeting on September 12, councillor Jim Overend praised the draft policy because there were many residents who were “still doing it very tough”.
“Firstly through COVID-19, and now with interest rate rises, they are finding it very hard out there,” he said.
His only request was that council take the first steps in initiating payment arrangements, rather than having residents “bury their heads in the sand” before asking for help.
A report to council said the draft policy lessens the burden of proof in applying for assistance, aims to engage ratepayers in an “open and continuous” dialogue and to help residential property owners where it is their principal place of residence.
The application of the draft policy, should it be adopted after the feedback period, may reduce the level of penalty interest earned by council, which is budgeted to be $845,000 for the 2022-23 financial year.
In June this year, the total value of rates owed to council was $22.56 million, up $2.3 million compared to the same time in 2021.
Cr Jarrod Bell said as a local government, Hume required an income through rates to deliver its services, which was “the reality of life“.
“However, that doesn’t mean that we have to be punitive,” Cr Bell said.
“That doesn’t mean that we need to keep wringing the sponge to try and get more and more out.
“That is exactly what this Rates Financial Hardship Policy envisages… a compassionate way of understanding… that people have good times and bad times, we’ve seen plenty of them over the last couple of years.”
