Media response - unpaid rates

Published on 22 September 2023

Response to The Advertiser.

• I am working on a story about unpaid rates in South Australian councils. The article will also explore the consequences of years of outstanding rates, such as referrals to debt collectors, the selling or auctioning of properties by the council, and debt recovery efforts. Could you please provide me with the following information for your council.

Total amount of unpaid rates for the financial year 2022/23
$10.1m (note – this is total outstanding arrears as at 30 June 2023 and includes periods prior to the 2022–23 financial year)

Percentage of unpaid rates
6.98 per cent (outstanding rates as a percentage of rates generated)

Total amount of paid rates
Unable to pull out rates paid relating to the 2022–23 financial year in the time provided

Number of ratepayers referred to debt collectors for the year 2022/23
7542 (9.1 per cent of ratepayers)

Actions taken against people in accordance with the Local Government Act 1999 (SA) for non-payment of rates (Number of people)
Currently zero but under review

Numbers of properties sold or auctioned by your council
Currently zero but under review

Number of any planned property sales due to unpaid rates
Currently zero but under review

Addresses of auctioned properties in the financial year 2022/23
Currently zero but under review

Despite the substantial amount in unpaid rates, why isn't the council recovering money by selling or auctioning properties as per the Local Government Act 1999 (SA)?
Selling properties is always a last resort for council, and throughout COVID-19 we paused actively pursuing outstanding rates to support the community through the pandemic.

We have, however, recommenced active debt collection in the past 12 months. This process involves contact with the ratepayer in a number of ways to allow them to pay their rates or negotiate a payment arrangement. How we pursue long-term outstanding accounts is being reviewed as part of this process.

With an outstanding amount of $10 million, do you think the council could utilize these funds for community development projects?
The City of Onkaparinga is the state’s largest council and this year our total budget for rates revenue is $165 million, so while the outstanding rates dollar amount is significant, its relativity needs to be considered. Outstanding rates don’t impact our ability to deliver the essential projects and services our communities rely on. They do, however, have an effect on how a small number of these projects and services are funded.

How do these unpaid rates affect the Onkaparinga community?
Unpaid rates result in council having less cash available, potentially resulting in increased borrowings. Outstanding rates do not impact our ability to deliver the essential projects and services our communities rely on.

Do you believe that more prompt rate payments would be advantageous for the community?
Yes. It’s certainly preferable to have the money available for council to use, rather than borrowing — acknowledging there are those experiencing financial hardship and relief measures are available to them.

What would it take to auction off some of the properties?
As noted above, how we pursue long-term outstanding accounts is being reviewed as part of this process.

Would you like to add any further comments?
No further comments.

ENDS