Rates debt sale threat

Council warns landowners

MORE than 190 lots could go under the hammer as Townsville City Council prepares to recoup unpaid rates and charges.

Landowners will have three months to start paying rates before it is too late.

Under the Local Government Regulation, council is able to sell property to recover unpaid rates and charges – but it’s considered a last resort.

Council has plans to sell off 194 lots, but it would not reveal how much was needed to be recouped from the unpaid rates.

Declaring the item confidential at the November council meeting, the Townsville Bulletin was unable to find out which properties were to be sold.

In 2019, about 200 properties were scheduled for sale due to unpaid rates.

A Townsville City Council spokesman said the overwhelming majority of ratepayers paid rates on time or took advantage of options under the hardship policy.

“Seeking to sell the property to recover unpaid council rates and charges is an option available to council; however, it is a very last resort,” he said.

Council will issue notices to residential landowners to start the process of selling their property to recover rates and charges that have not been paid over a three-year period.

“Notices can also be issued to recover unpaid rates and charges on vacant land or land used only for commercial purposes that have been unpaid for more than one year,” the spokesman said. “The landowners have three months from the date of issue of the notice to pay the overdue rates in full or the land can be sold.”

Before any sale, council hopes to work with landowners to find an alternative way to resolve the outstanding debt and avoid the need to sell.

“Issuing the notice may also allow some ratepayers to access their superannuation to enable them to pay the outstanding rates and charges,” the spokesman said.

Proceeds of sales will be used to pay the rates, and any other fees accrued through the sale, before the remaining funds are transferred to the person who owned the land before the sale. If money remaining is unclaimed for two years, the funds must be transferred to the public trustee as unclaimed money.