Changes for late rates

Legislation was introduced into state parliament last Wednesday aimed at ensuring people struggling to pay council rates are not driven further into debt or out of their homes.

Introducing the amendment to existing legislation Local Government minister Shaun Leane said it followed a rating system review and an ombudsman's investigation into how councils respond to ratepayers having financial hardship.

In Baw Baw Shire there has been only a very small number - 41 of almost 28,500 rateable properties in the current year - where payments are made under financial hardship policies.

Mr Leane said "many Victorians were doing it tough" and the legislation presented last week would implement fairer policies.

New measures include preventing councils from using debt collectors and taking legal action unless ratepayers refuse to engage with their councils and all other options have been exhausted.

Mr Leane said the ombudsman's report found that in addition to being met by debt collectors and costly litigation many were also charged high penalty interest on outstanding overdue amounts.

He said the legislation would allow the minister in consultation with the Essential Services Commission to set a maximum amount of interest that could be levied on unpaid rates and charges and to develop guidelines for councils to follow.

Councils will also be limited in using Magistrate's Court orders to recover unpaid rates and charges to situations where they had been outstanding for two years or more, the minister stated.