Tara Murray
Brimbank council took more than 1000 ratepayers court over unpaid rates during a two year period, according to a new Ombudsman’s report.
Ombudsman Deborah Glass last week published her investigation into councils’ response to ratepayers in financial hardship.
Ms Glass found that there were varying practices across Victoria’s 79 councils in regards to hardship policies, with information about many councils’ policies not made public.
“Some councils offered more generous hardship relief during the pandemic and are doing more to engage with ratepayers who fall into debt,” she said.
“Good practice includes publishing information in community languages, offering easier ways to pay rates, and working with local financial counsellors.
“We heard some councils were ‘exemplary’ at dealing with ratepayers in hardship. But others were described as ‘paternalistic’ and ‘punitive’; ‘too quick to sue’ without adequately exploring alternatives.
“We heard concerns from community advocates that some councils were judgmental.”
The report found in 2018-19, Brimbank council took court action against 628 ratepayers, placing it third in the state for legal action.
In the 2019-20 financial year, the council took 416 people to court. Of the councils that provided that data, the council was again ranked in the top three.
Brimbank council financial and organisational excellence chief strategist Shane Marr said the council had recommended to the Ombudsman that a more appropriate measure would be to assess legal costs per assessment.
Star Weekly asked the council to provide the cost of legal fees associated with taking court action over the two year period, but the data wasn’t provided.
“Brimbank council understands some ratepayers experience financial difficulties and have brought in a number of measures offering rates relief and assistance for eligible ratepayers,” Mr Marr said.
“Council has an adopted financial hardship policy to consider any requests for support in payment of their rates,” he said.
“A as stated in the report and as part of our response to the Ombudsman, we have a higher number of ratepayers in Brimbank comparable to other municipalities and therefore expect to have a larger number of legal actions.
“Council only undertakes debt recovery action against a ratepayer when they have not been in contact to discuss financial hardship or to enter into an arrangement to repay the debt.”
The council suspended all debt recovery legal action until June 30 this year, after adopting a COVID-19 Financial Hardship Policy in April 2020.
The Ombudsman’s report did highlight that Brimbank council was an example of better practice for the provision of accessible information on financial hardship programs.
Mr Carr said the council encourages those having difficulties paying their rates to contact the council.
