A LAW preventing councils from using debt collectors or legal action as a way of collecting rates could be implemented soon.
The state government’s local government minister, Shaun Leane, has introduced a bill to parliament which limits the methods councils can use to chase debts. In addition to banning the use of debt collectors, a maximum amount of interest levied on unpaid rates and charges will be set by the minister. Council will also be restricted in its use of the Magistrates Court to collect unpaid rates when they have not been paid for more than two years.
Leane said that the bill would make sure councils implement fairer financial hardship policies. “We know that many Victorians are doing it tough and that’s why we are working to reform the rating system,” he said. “Good hardship relief schemes strike a balance where the rate burden is shared while ensuring people in hardship are not driven further into debt or out of their homes.”
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We know that many Victorians are doing it tough and that’s why we are working to reform the rating system