Ratepayers facing hardship are expected not to be charged interest on deferred rates under new State rules.
Casey has confirmed that it already waives interest for residents approved for financial hardship deferrals in practice, but its publicly available hardship policy still predates the State rules, which include a wider range of hardship circumstances. This means an update is required.
Council stated that an updated policy would be presented to the Council by mid-2026.
The change comes under Ministerial Guidelines released by the State Government in December 2025, which require that ratepayers experiencing hardship and financial hardship must be treated “fairly, compassionately and proportionately”.
One of the new requirements is that councils must stop charging interest when rate payments are formally deferred due to hardship.
The guidelines use a much broader definition of hardship than simply being unable to pay.
Hardship can include sudden job loss, illness, mental health issues, family violence or economic abuse, caring responsibilities, scams or fraud, incarceration, or natural disasters, even if a person is not yet in severe financial distress.
In these situations, councils can defer payments temporarily to give residents breathing space.
Financial hardship is treated as a more serious category, where paying rates would leave someone unable to afford basic necessities such as food, housing, utilities or medical care.
While quarterly instalments remain the standard billing system, councils are encouraged to allow smaller, more frequent payments, such as weekly, fortnightly or monthly options.
If a payment plan follows a hardship deferral, then interest must not be charged.
Councils are legally required to review and update their existing rates hardship policies under the direction of the new Guidelines.
At the moment, Casey Council has a number of measures in place to support the community, such as offering flexible payment options and support for people experiencing hardship.
The flexible payment plan is available for all ratepayers.
According to Mayor Cr Stefan Koomen, in September 2025, Council launched a new payment gateway through Payble, which allows residents to pay their rates with weekly, fortnightly or monthly payments.
“This puts residents in control of their payment schedules and lets people manage payment in the way that works for them,” he said.
Council also confirmed it does not charge interest on the overdue amounts under payment plans, where residents continue making regular repayments, noting this has been standard practice for several years, despite the existing 2021 Rates Hardship Policy saying otherwise.
As for the support for people experiencing hardship, the 2021 policy stipulates that ratepayers can apply for deferral of rates and charges, waiver of interest and legal charges invoiced to date, and waiver of rates and charges.
Council confirmed that if someone has been approved by Council for a financial hardship deferral for a period, then no interest is charged.
This is usually revisited regularly to confirm no change of circumstances.
“Council is also in the process of updating related policies in accordance with the new Ministerial Guidelines; however, residents who are having difficulty paying their rates are encouraged to contact Council as soon as possible to discuss the options that are available to them,” Mayor Cr Koomen said.
Council shared that the updated policy would be presented to Council for approval in mid-2026.
Casey has experienced an increase in the rate of arrears in the last five years.
This has been linked to the Covid period as well as the cost of living.
Casey Residents and Ratepayers Association (CRRA) president Anthony Tassone said the reforms come at a critical time for local households.
“People in our community are hurting financially. Rising living costs, insecure work, illness and unexpected life events are pushing many households to the brink,” he said.
Mr Tassone said stopping interest on deferred payments and pausing enforcement while hardship applications are assessed would help prevent residents from falling into cycles of debt.
“These changes help people stay engaged with the council instead of falling into a spiral of arrears and debt recovery,” he said.
However, Mr Tassone said the success of the reforms now depends on how quickly councils act.
“At this stage, Casey’s publicly available hardship policy predates the new requirements,” he said.
“We’re urging Council to update its policy as a priority and clearly communicate the new protections to ratepayers.”
To apply for a rates payment plan, visit: casey.vic.gov.au/apply-rates-payment-plan
To apply for assistance due to financial hardship, visit: casey.vic.gov.au/rates-financial-hardship
