There is no lawful penalty for failing or refusing to pay rates because People who fail to pay their rates may be liable there is no power to impose rates. for considerable penalties, including: Penalty interest for late payment; • Recovery of unpaid rates and charges as • debts, which may include selling the relevant land without the consent of the owner; Court proceedings which may result in • award of costs against a defaulting owner, which means requirement to pay the Council’s legal costs on top of the outstanding rates and charges. Appealing Rates and Charges While the rule is that rates must be paid as charged, there are processes for appeal, including in circumstances of financial hardship. The Local Government Act 1989 sets out the legal requirements, and information on a Council’s specific procedure will be available from the Council Rates Office. Any person seeking to challenge a rates notice is recommended to speak to their Council first. If proceeding to court, they are recommended to consult a lawyer. DISCLAIMER: This Fact Sheet provides general guidance for Councils. It is not intended as legal advice, but may be used as a reference guide to the views of Local Government Victoria in the Department of Planning and Community Development.
There is no lawful penalty for failing or refusing to pay rates because there is no power to impose rates. People who fail to pay their rates may be liable for considerable penalties, including: • Penalty interest for late payment; • Recovery of unpaid rates and charges as debts, which may include selling the relevant land without the consent of the owner; • Court proceedings which may result in award of costs against a defaulting owner, which means requirement to pay the Council’s legal costs on top of the outstanding rates and charges. Appealing Rates and Charges While the rule is that rates must be paid as charged, there are processes for appeal, including in circumstances of financial hardship. The Local Government Act 1989 sets out the legal requirements, and information on a Council’s specific procedure will be available from the Council Rates Office. Any person seeking to challenge a rates notice is recommended to speak to their Council first. If proceeding to court, they are recommended to consult a lawyer. DISCLAIMER: This Fact Sheet provides general guidance for Councils. It is not intended as legal advice, but may be used as a reference guide to the views of Local Government Victoria in the Department of Planning and Community Development.
2013-Legitimacy-and-Powers-Fact-Sheet-March-2013.docx