Rates hardship policy questioned

Mayor Michael Clarke responded to a resident's questions at last week's council meeting.

Michaela Meade

A Maribyrnong ratepayer has questioned why the council does not waive rate payments in times of hardship.

Arthur Bregiannis questioned the council about its hardship policy at last week’s council meeting, amid concerns rates in the city of Maribyrnong are too high.

He also asked the council how many residents would need to sign a petition before it considered lowering rates.

“The community has suffered a lot [during the COVID-19 pandemic]… many people were unable to pay their rates,” he said.

Mr Bregiannis’ questions coincided with the release of an Ombudsman’s report into the rates and hardship practices of local councils.

The report revealed Maribyrnong council does not have a policy to allow rates to be waived. The council allows rates to be deferred.

Hobsons Bay council’s hardship policy includes deferrals, as well as waivers “in exceptional circumstances”.

Last month, it was revealed Maribyrnong ratepayers paid the fourth highest average residential rates and charges in metropolitan Melbourne, according to Victorian councils’ budget documents for 2020-21.

Boroondara was the highest ($2520.50), followed by Bayside ($2210.42), Moreland ($2160.05) and then Maribyrnong ($2068.22).

Responding to Mr Bregiannis’ questions at last week’s council meeting, mayor Michael Clarke said council did not need to waive rates as it offered ratepayers “opportunities to defer” their payments.

“There are some cases where we know that the deferring of those rates will be for quite some time,” he said.

“Because we understand the circumstances of the individual’s concerned are such that they are unlikely to be able to attend to those rates.

“We are not immune to understanding the hardship requirements and needs [of] our community.

“They will not be waived… they will and can be deferred.”

Cr Clarke said council was “happy to hear submissions” from the community about possible actions to reduce rates.

“What’s interesting is that no one… has come to us with suggestions as to how we would lower rates,” he said.

“If… you are saying that you have a cohort of contemporaries who would like to see our libraries close, and you have a petition… in a bid to reduce the rate burden, we would accept such a petition.

“I would suggest the majority of the community would not be supportive of such a move, but we would receive such a petition.

“We can stop tomorrow, providing services, which will reduce your rates, yes, no question about it, but… do you think the community would like to see [that]?”