Rates in red

By Melissa Meehan
GREATER Dandenong residents owe more than $3.5 million dollars in outstanding rates.
More than 2500 ratepayers have failed to pay their rates amounting to $3,542,671 of the $70 million collected annually.
This figure does not include ratepayers making part payment on a staggered basis.
Corporate Services director Mick Jaensch said the amount of outstanding rates was in line with what was recorded in previous financial years.
“Council is currently in correspondence with those ratepayers who have not paid,” Mr Jaensch said.
This year, the City of Greater Dandenong has not yet taken legal action against residents.
But Mr Jaensch said it was taken as a last resort.
“Council does take legal action for the recovery of unpaid rates, but only if no payment arrangement is entered into,” he said. “We try to give residents as many possible other options as we can.”
He said council considered applications for the waiver of interest where there had been demonstrated and significant financial hardship.
Mr Jaensch said council would shortly consider a rates and charges hardship policy at their 11 May meeting.
“It is still being finalised before being formally considered by council,” he said.
“It will provide options for ratepayers experiencing financial hardship to defer their rates, either in part or full.
“Or in extreme or unique circumstances seek a waiver of part of their council rates.”
A deferral would mean that outstanding rates would remain as a charge against the property but would attract a minimal interest rate compared to the current penalty interest rate of 10 per cent per annum.
He urged any residents experiencing financial hardship to discuss those issues with the council.
A State Government spokesman said while the State Government set the penalty rates, councils enforce payment of land tax.
Any revenue from late fees is spent by council at their discretion and the government doesn’t receive any revenue from late payment fees.
“The State Government sets the maximum penalty rate, which is currently 10 per cent, and councils can charge less than this if they so wish,” he said.
”Rate payers experiencing hardship can apply to have penalty interest waived as they can with their rates.”
WAYSS general manager for Housing Programs, Jen Kelly said some people in Dandenong were facing a constant “Struggle Street”.
“We have noticed there is more hardship in Dandenong in the last 18 months,” she said.
“Dandenong used to be affordable, but now we are finding that people are taking the risk and not paying things like their rates and house insurance.
“It’s grim out there.”
Turn to Page 5 to read about Dandenong’s invisible homelessness.