The Launceston City Council is offering financially struggling ratepayers the chance to defer or cancel their rates during Tasmania's state of emergency.
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A cancellation will only occur after an initial deferment of rates, except for in the "most exceptional circumstances".
The policy applies to general rates revenue, excluding waste and fire service charges but applications will not be considered on residential investment properties.
Under the Interim Rates and Charges Hardship Policy a ratepayer may:
- Apply to the council for a postponement of rate payment
- Apply to the council for cancellation of all or part of any rates, penalty or interest
- Apply for remission of interest or penalty invoiced in respect of a rate bill but in a state of emergency the council does not charge interest or penalties for six months.
Financial hardship must be determined by council officers, through an independent accredited financial counsellor or by evidence of a valid Centrelink or DVA entitlement to benefit. However, additional supporting documentation may be sought to prove hardship.
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Council's chief executive officer Michael Stretton said hardship may include loss of employment, family breakdown, illness or a death in the family.
"Financial hardship involves an inability of the property owner to meet their commitments, rather than an unwillingness to do so," he said.
"Except for the most exceptional circumstances, council will not remit any rates but rather will encourage the person to enter into a payment arrangement, or where the person meets the criteria for deferment of rates, to defer the rates.
"Council delegates to the [CEO] the power to authorise a remission of rates of up to $500 per property in one financial year.
"If the [CEO] is of the view that exceptional circumstances warrant an extension to this policy framework, a decision of council will be sought."
If a one-off cancellation is sort the council, by absolute majority, may cancel all or part of any rates, penalty or interest paid or payable by a ratepayer.
If deferment is granted payments may be postponed for a specified period (maximum of three years) or under conditions the ratepayer pays interest on the amount postponed.
Applications to apply for financial hardship open on Wednesday via the council's website.
Rates were due to increase by 3.9 per cent to cover the 2020/21 budget but instead will not be increased, resulting in a $2.23m saving for all ratepayers.
The policy is in addition the council's Community Care And Recovery Package.
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