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CP- 36 Financial Hardship Policy

Organisational Excellence – Financial Services

07/03/2023 | Rev

Page 1 of 7

The purpose of the Rates and Charges Financial Hardship Policy is to establish Council policy in

relation to

•

Management of the payment of rates and charges by special arrangement;

•

Applications to defer payment of rates and charges;

•

Applications to have rates and charges waived; and

•

Levying of penalty interest on outstanding Rates and Charges.

This policy provides policy directions for Council decision-makers in accordance with the

(“the Act”) and demonstrates Council’s vision and core values as described

in the

.

Council recognises there are cases of genuine financial hardship requiring respect and compassion

in special circumstances.

Council considers:

• Financial difficulty to mean a difficulty to pay debts in the short term due to a change in

living circumstances; and

• Financial hardship to mean a prolonged difficulty in paying living expenses, including debts,

due to financial circumstances.

Council recognises that not all circumstances are alike, and that financial difficulty and financial

hardship may arise from a range of individual circumstances including, but not limited to, the

following situations:

•

Unemployment;

•

Sickness or injury;

•

Family break down; and

•

Low income or loss of income

This policy aims to establish clear guidelines for assessment of hardship applications for Council

Rates and Charges based on the principles of fairness, transparency, integrity, equity,

confidentiality and compliance with statutory requirements while ensuring that revenue that funds

Council services is not compromised.

It is recognised that this policy is being considered prior to the commencement of the rating

provisions of the

,

which will introduce new provisions relating to unpaid rates and charges. At this time the policy will

be reassessed to align with new legislation.

Several terms are not specifically defined in the Act or require clarity on how they apply to this

policy. These terms are defined below:

CP- 36 Financial Hardship Policy

Organisational Excellence – Financial Services

07/03/2023 | Rev

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– where this term is referred to in this policy it refers specifically to section 172 of the Act,

the application of interest to unpaid rates and charges.

– as referred to in sections 171 and 171A of the Act, this includes waivers provided to

applicable concession card holders under the (section 171, commonly referred to as “Pension

Rebates”) and others as determined by Council from time to time.

– this term is used to clarify “arrangement” as referred to in section 181 of

the Act. This policy defines it as: “

”

The following policy principles guide the application of financial hardship assistance and are driven

by both the Brimbank Social Justice Charter and the Brimbank Council Plan 2021-2025:

all applicants requesting financial hardship assistance will be treated fairly and in

accordance with this policy regardless of gender, sexual orientation, race, ethnicity, religion, age,

socioeconomic status and physical or mental ability.

– Council recognises the importance of engaging the community during Annual Draft

Budget processes and when designing Rating Strategies. Through community consultation

residents and ratepayers can have their say regarding how rates and charges are raised, as well as

how waivers and discounts are applied.

– Council recognises that providing an equitable approach to rates and charges requires a

multi-tiered approach that includes consideration within the annual council budget, council’s rating

strategy, as well as debt recovery and financial hardship policies. This Financial Hardship Policy

plays an important role of providing targeted relief to ratepayers experiencing payment difficulty

with rates and charges.

– As a third-tier of government, Council recognises Rates and Charges as a

property tax for which all ratepayers are liable. The Victorian does not restrict Council from

collecting lawfully raised rates and charges under sections 180 and 181 of the Act, however

Council recognises the value of engaging residents and offering support prior to assessing any

unpaid amount for legal action.

All applications for waivers on grounds of hardship are considered based on the quality of the

information provided. Council may ask for general evidence of a ratepayer’s situation to assess the

application, but will not request (or require) specific documentation that the applicant is not

comfortable providing.

While considering applications, Council officers may request further supporting evidence. Requests

will not demand specific information, and applicants may choose to provide evidence that they

believe is relevant to the application. Ratepayers not providing further information will have their

application finalised based on the information previously provided.

Council recognises that applying waivers directly affects the total rates and charges and is not

recoverable by adjusting the ad valorem effects of differential rates and directly affects the funding

of services provided to the municipality.

where a ratepayer does not apply for waivers and proposes to

make payment in full by 30 June of the current financial year.

all other proposed payment arrangements. Evidence provided

for an Ongoing Payment Arrangement application may be assessed differently to Annual Payment

Arrangements, due to their long-term nature and the effect on Council revenue.

– where non-payment of rates and charges results in the calculation of interest, ratepayers

may apply to have this interest due and payable for the previous 12 months waived, upon 3

successful payment cycles as per the agreed payment arrangement.

Under section 170 of the Act, councils may allow rate payments to be deferred where they consider

that making payment would cause hardship to the ratepayer. This policy further separates deferrals

into three separate scenarios and the minimum requirements for consideration of applications.

where the period of deferral is less than four weeks, ratepayers may request

a Short Term Deferral to cover minor disruptions to their income. To qualify for consideration of a

Short Term Deferral, the following qualifiers must be met:

•

Applications should be made in writing.

•

Applications must include evidence to support all claims;

•

The maximum period of deferral is four (4) weeks;

•

Deferral cannot be extended or renewed past the maximum four (4) week allowance; and

•

No request to halt or waive interest will be accepted.

All applications will be considered based on:

CP- 36 Financial Hardship Policy

Organisational Excellence – Financial Services

07/03/2023 | Rev

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•

Payment history (including previous deferrals, missed payments and legal action); and/or

•

Evidence provided by ratepayer supporting application (verbal or written).

when a ratepayer requires further time to pay due to more serious financial

concerns, they may request a longer period of deferral. To qualify for consideration of a Long Term

Deferral, the following qualifiers must be met:

•

Applications must be made in writing;

•

Applications must include evidence to support all claims;

•

The maximum period of deferral is six (6) months; and

•

Deferral may be extended or renewed to a maximum total of twelve (12) months.

All applications will be considered based on:

•

Payment history (such as: previous deferrals, missed payments and legal action);

•

Property use (such as: factory, commercial, principle place of residence); and/or

•

Evidence provided by ratepayer supporting application (written).

where a ratepayer holds a valid concession card, they may apply for an

ongoing deferral. Council recognises that some ratepayers have been means tested during the

application process for a DHHS Concession Card, and that assessing financial evidence may not

be required. The intent of a non-application deferral is to protect potentially vulnerable residents

from legal action to collect outstanding rates and charges. To qualify for consideration of a Long

Term Deferral, the following qualifiers must be met:

•

Applications must be made in writing;

•

The ratepayer must hold a valid concession card and be receiving a concession waiver on

their rates and charges as per section 171 of the Act;

•

Only applies to the applicant’s Principle Place of Residence; and

•

No request to halt or waive interest will be accepted.

The period of deferral for a Concession Deferral is determined by the ratepayer’s concession card.

If the validity of the concession card ends, all unpaid rates and charges become due and payable

immediately.

All applications will be considered based on:

•

Validity of the applicant’s concession card; and

•

Presence of a concession waiver (section 171 of the Act) on rates and charges due to the

State Concessions Act 2004.

Ratepayer Category

Short-Term Deferral

(up to 4 weeks)

Long-Term Deferral

(up to 6-12 months) Application Required

Concession

Card Holders

Y

Y

Y

All Other

Ratepayers

Y

Y

Y

CP- 36 Financial Hardship Policy

Organisational Excellence – Financial Services

07/03/2023 | Rev

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Waiver of rates and charges is detailed in sections 171 and 171A of the Act and covers waivers

under the

as well as on the grounds of financial hardship. Council

recognises that rebates supplied by the

may not be suitable for asset

rich, cash-poor individuals that wish to remain in their family home or principal place of residence,

but are unable to afford to make payment in full.

Council generally does not allow the waiver of rates or charges except in exceptional

circumstances. This is to ensure that financial hardship assistance offered to one group does not

adversely impact other ratepayers. A waiver on grounds of financial hardship will usually only be

appropriate if a person’s particular circumstances make the payment of interest and/or rates and

charges in full unfair or unjust in some way. Their circumstances would need to distinguish their

situation from that of the many other people who have to repay their debts.

Council will consider individual applications for waiver of interest and rates and charges based on

the personal circumstances of applicants in the following way.

– where non-payment of rates and charges results in the calculation of interest, ratepayers

may apply to have this interest waived. Council recognises that financial hardship can prevent

ratepayers from meeting instalment due dates, or that administrative errors can occur resulting in

delayed payments. To qualify for consideration of an interest waiver, the following qualifiers must

be met:

•

Application may be verbal (where Council has made an administrative error) or must be in

writing (for all other situations);

•

Applications must include evidence to support all claims; and

•

The interest to be waived has accrued (or been charged) within the last twelve (12) months.

All applications will be considered based on:

•

Payment history (such as: previous deferrals, missed payments and legal action);

•

The amount of interest requested to be waived;

•

Interest waiver application history; and/or

•

Evidence provided by ratepayer supporting application (written).

– Council recognises that approving waivers for rates and charges is the most

direct method of providing relief to ratepayers experiencing financial hardship, however it also

reduces revenue collected to fund Council services.

Applications to waive rates and charges will generally be considered for the current financial year

only.

Any application for a waiver or partial waiver of rates or charges must be assessed and approved

by the Rate Waiver Review Committee.

To qualify for consideration of a waiver, the following qualifiers must be met:

•

Applications must be made in writing; and

CP- 36 Financial Hardship Policy

Organisational Excellence – Financial Services

07/03/2023 | Rev

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•

Applications must include evidence to support all claims.

All applications will be considered based on:

•

Payment history (such as: previous deferrals, missed payments and legal action);

•

The amount of rates and charges to be waived;

•

The type of rates and charges to be waived; and

•

Evidence provided by ratepayer supporting application (written).

Additionally, Council may declare in its Annual Budget any fixed amount

to be waived across ratepayers where:

•

Ratepayers hold a valid concession card and are receiving a concession waiver on their

rates and charges; and

•

The property is their Principle Place of Residence.

No application is required to receive this waiver as it is applied automatically, however residents

and ratepayers may engage with Council during the Draft Annual Budget process via public

submission.

During times of widespread emergency or disaster, Council may introduce additional policies

pertaining to financial hardship measures. Emergency policies take precedence and override

relevant sections of this policy.

All applications will be in considered in accordance with the authority specified in Council’s

Instruments of Delegation and Sub-Delegation.

A ratepayer may appeal decisions made under this policy by submitting a request in writing

providing all evidence for consideration. This appeal will be assessed by the reporting manager of

the original decision maker.

This policy was approved by the Director Organisation Excellence on 22 December

2022.

14 February 2023

Revenue and Rating Plan

Organisational Excellence – Financial Services

Manager Finance

Director Organisational Excellence

CP- 36 Financial Hardship Policy

Organisational Excellence – Financial Services

07/03/2023 | Rev

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