Div 9Imposition and recovery of rates and charges

Division 9—Imposition and recovery of rates and charges 176—Preliminary rates includes a service charge imposed under this Part. 177—Rates are charges against land (1) Rates imposed on land are a charge on the land. (2) However, if rates are assessed against the common property, or part of the common property, of a community scheme under the Community Titles Act 1996, the rates are not a charge on the common property but are, instead, a charge on each of the community lots of the community scheme in proportion to the lot entitlements of the respective lots. (3) Subsection (2) does not apply in a case where section 147(6) applies. 178—Liability for rates (1) Subject to subsection (2), the owner of land is the principal ratepayer in respect of the land. (a) the name of an occupier is entered in the assessment record as the principal ratepayer in respect of land; or (b) the land is held from the council under a lease or licence, the occupier of the land (rather than the owner) will be regarded as the principal ratepayer. (3) Subject to subsection (9), rates may be recovered as a debt from— (a) the principal ratepayer; or (b) any other person (not being a principal ratepayer) who is an owner or occupier of the land; or (c) any other person who was at the time of the declaration of the rates an owner or occupier of the land. (4) The council may, by written notice to a lessee or licensee of land in respect of which rates have fallen due, require him or her to pay to the council rent or other consideration payable under the lease or licence in satisfaction of the liability for rates. (5) If the council gives a notice under subsection (4), an additional charge of 5 per cent of the amount in arrears is payable and recoverable as part of those rates. (6) A council may remit the charge payable under subsection (5) in whole or in part. (7) If— (a) the council gives a notice to a lessee or licensee under subsection (4); and (b) the council, by written notice to the owner of the land, informs the owner of the imposition of the requirement under subsection (4); and (c) the lessee or licensee, contrary to the terms of the notice under subsection (4), makes a payment to the owner instead of to the council, the owner, must within one clear business day after receipt of the payment, pay the amount received to the council in satisfaction of the liability for rates. Maximum penalty: $750. (8) If rates are paid by, or recovered from, a person who is not the principal ratepayer, that person may, subject to an agreement to the contrary— (a) recover the amount as a debt from the principal ratepayer; or (b) if the person is a lessee or licensee—set off the amount paid to the council against a liability under the lease or licence (and a lessor or tenant against whom such an amount is set off may in turn set off the amount against a prior lessor or tenant from whom his or her interest in or in relation to the land is derived). (9) If an occupier of land derives his or her right of occupancy from a residential tenancy agreement under the Residential Tenancies Act 1995, no amount by way of rates may be recovered from the occupier unless that amount has fallen due by virtue of a requirement imposed under subsection (4). 179—Liability for rates if land is not rateable for the whole of the financial year (1) If land is rateable for portion, but not for the whole, of a financial year, the land will be subject to rates imposed for the financial year but there will be a proportionate reduction in the amount of rates. (2) A council may, for the purposes of the operation of subsection (1) in respect of land that becomes rateable after the adoption of valuations by the council for the relevant year, specifically adopt a valuation of the land. (3) If during the course of a financial year land is excised from the area of one council (council A) and added to the area of another council (council B)— (a) the land remains subject to rates imposed by council A for the financial year; and (b) the land does not become subject to rates imposed by council B until the following financial year. (4) If land ceases to be rateable land by reason of transfer or surrender to the Crown during the course of a financial year, the land remains subject to rates imposed for the financial year. (5) If land ceases to be rateable land for a reason other than the reason under subsection (4) during the course of a financial year and the rates have been paid, the council must refund to the principal ratepayer an amount proportionate to the remaining part of the financial year. 180—Service of rate notice (1) A council must, as soon as practicable after— (a) the declaration of a rate; or (b) the imposition of a service charge; or (c) a change in the rates liability of land, send to the principal ratepayer or, in the case of a service charge, the owner or occupier of the relevant land, a rates notice.1 (2) A rates notice must incorporate, or be accompanied by, the information required by the regulations and comply with any other requirement prescribed by the regulations. 1 See Chapter 14 Part 2 for information concerning the service of this notice. 181—Payment of rates—general principles (1) Subject to this section, rates declared or payable in respect of a particular financial year will fall due in 4 equal or approximately equal instalments payable in the months of September, December, March and June of the financial year for which the rates are declared. (2) The day on which each instalment falls due will be determined by the council. (3) If a council declares a general rate for a particular financial year after 15 August in that financial year, the council may adjust the months in which instalments would otherwise be payable under subsection (1) (taking into account what is reasonable in the circumstances). (4) Despite a preceding subsection— (a) a person may elect to pay any instalment of rates in advance; and (b) a council and a principal ratepayer may agree that rates will be payable in such instalments falling due on such days as may be specified in the agreement (and that ratepayer's rates will then be payable accordingly). (5) A council must, in relation to each instalment of rates, send a rates notice to the principal ratepayer shown in the assessment record in respect of the land setting out— (a) the amount of the instalment; and (b) the date on which it falls due or, in a case where payment is to be postponed under another provision of this Act, the information prescribed by the regulations. (6) For the purposes of subsection (5), the notice is to be sent— (a) by post or similar form of delivery, to the address shown in the assessment record; or (b) by agreement between the council and the principal ratepayer, by electronic communication, to an electronic address nominated by the principal ratepayer. (7) A notice under subsection (5) must be sent at least 30 days but not more than 60 days before an instalment falls due. (7a) A council may, as part of an agreement under subsection (4)(b), vary the period for the provision of a notice under subsection (7). (8) If an instalment of rates is not paid on or before the date on which it falls due— (a) the instalment will be regarded as being in arrears; and (b) a fine of 2 per cent of the amount of the instalment is payable; and (c) on the expiration of each full month from that date, interest at the prescribed percentage of the amount in arrears (including the amount of any previous unpaid fine and including interest from any previous month) accrues. (8a) Subsection (8) does not apply with respect to the postponement of the payment of rates under another section of this Act (while the postponement is occurring in accordance with the relevant section). (9) A council may remit any amount payable under subsection (8) in whole or in part. (10) An amount payable under subsection (8) in respect of outstanding rates is recoverable as a part of those rates. (11) A council may grant discounts or other incentives in order to encourage— (a) the payment of instalments of rates in advance; or (b) prompt payment of rates. (12) Except as provided by subsection (8)— (a) a council may not impose a surcharge or administrative levy with respect to the payment of rates by instalments under subsection (1); but (b) a council may impose a surcharge or administrative levy not exceeding 1 per cent of the rates payable in a particular financial year with respect to the payment of rates by instalments under subsection (4)(b). (13) A council may, in relation to the payment of separate rates or service rates, by written notice incorporated in a notice for the payment of those rates sent to the principal ratepayer shown in the assessment record in respect of the land at the address shown in the assessment record at least 30 days before an amount is payable in respect of the rates for a particular financial year, impose a requirement that differs from the requirements of this section. (15) Despite a preceding subsection, a council may decide that rates of a particular kind will be payable in more than four instalments in a particular financial year and, in such a case— (a) the instalments must be payable on a regular basis (or essentially a regular basis) over the whole of the financial year, or the remainder of the financial year (depending on when the rates are declared); and (b) the council must give at least 30 days notice before an instalment falls due. (17) In this section— the prescribed percentage is to be calculated as follows: P is the prescribed percentage CADR is the cash advance debenture rate for that financial year. 182—Remission and postponement of payment (1) If a council is satisfied on the application of a ratepayer that payment of rates in accordance with this Act would cause hardship, the council may— (a) postpone payment in whole or in part for such period as the council thinks fit; or (b) remit the rates in whole or in part. (2) A postponement under subsection (1)— (a) may, if the council thinks fit, be granted on condition that the ratepayer pay interest on the amount affected by the postponement at a rate fixed by the council (but not exceeding the cash advance debenture rate); and (b) may be granted on other conditions determined by the council; and (c) ceases to operate if— (i) the council in its discretion revokes the postponement (in which case the council must give the ratepayer at least 30 days written notice of the revocation before taking action to recover rates affected by the postponement); or (ii) the ratepayer ceases to own or occupy the land in respect of which the rates are imposed (in which case the rates are immediately payable). (3) A council may grant other or additional postponements of rates— (a) to assist or support a business in its area; or (b) to alleviate the effects of anomalies that have occurred in valuations under this Act. (4) A council may grant other or additional remissions of rates on the same basis as applies under the Rates and Land Tax Remission Act 1986 (and such remissions will be in addition to the remissions that are available under that Act). (5) A council may require a ratepayer who claims to be entitled to a remission of rates by virtue of a determination under subsection (4) to provide evidence verifying his or her entitlement. (6) A council may revoke a determination under subsection (4) at any time (but the revocation will not affect an entitlement to remission in relation to rates declared before the revocation takes effect). (7) A council cannot grant to a ratepayer a remission of general rates under this section without also granting to the ratepayer a comparable remission of any other rates that may also apply under this Part. (8) Nothing in this section applies with respect to the postponement of rates under section 182A. 182A—Postponement of rates—Seniors (1) A person may apply to a council for a postponement of the payment of the prescribed proportion of rates for the current or a future financial year if— (a) the person is a prescribed ratepayer, or is the spouse or domestic partner of a prescribed ratepayer; and (b) the rates are payable on land that is the principal place of residence of the prescribed ratepayer; and (c) the land is owned by— (i) the prescribed ratepayer; or (ii) the prescribed ratepayer and his or her spouse or domestic partner, (and no other person has an interest (as owner) in the land). (2) An application must be made in the prescribed manner and form and be accompanied by such information as the council may reasonably require. (3) A council may— (a) reject an application for the postponement of rates; or (b) impose conditions on the postponement of rates, but only in accordance with the regulations. (4) Any rates that are within the ambit of a postponement under this section with respect to a particular financial year will become due and payable— (a) when title to the relevant land is transferred to another person; or (b) in the event of a failure to comply with a condition that applies under subsection (3), (and will not be payable before this time even if rates declared with respect to a subsequent financial year are not to be postponed due to a change in circumstances). (5) If a postponement of the payment of rates occurs under this section, interest will accrue on the amount affected by the postponement at the prescribed rate per month (applied with respect to the amount postponed and compounded on a monthly basis) until the amount is paid. (6) Nothing in subsection (4) prevents the payment of the relevant rates in whole or in part (together with any interest that has accrued under subsection (5)) at an earlier time. (7) If rates that are within the ambit of a postponement under this section become due and payable under subsection (4), the following provisions will apply in connection with the liability to pay the rates (and any interest that has accrued under subsection (5)): (a) in a case where subsection (4)(a) applies—the rates (and interest) will be taken to be a charge over the land that ranks— (i) after— (A) any liability to the Crown for rates, charges or taxes; and (B) any prescribed liability to the Crown in respect of the land; and (C) any mortgage, encumbrance or charge registered before the commencement of this section; and (ii) before— (A) any mortgage, encumbrance or charge registered after the commencement of this section (even if the registration occurs before the charge arises); and (B) any mortgage, encumbrance or charge that is not registered in respect of the land (even if in existence before the commencement of this section or before the charge arises); and (C) any other interest or liability of a prescribed kind, (and the charge will attach to the land until it is discharged); (b) in a case where subsection (4)(b) applies—the rates (and interest) will be taken to be rates in arrears from the date of the failure to comply with the relevant condition (and to be recoverable as such under this Act). (8) If a person has applied for the benefit of this section and an entitlement to a postponement ceases to exist, the owner of the land must, within the period prescribed by the regulations, inform the council in writing of that fact (unless the liability to the relevant rates has been discharged). (9) A person must not make a false or misleading statement or representation in an application made (or purporting to be made) under this section. (10) The Governor may, by regulation, make any other provision relating to the operation or administration of this section. (11) A regulation cannot be made for the purposes of this section except after consultation with the LGA. (12) In this section— prescribed rate is an amount calculated as follows: P is the prescribed rate CADR is the cash advance debenture rate for any relevant financial year; prescribed ratepayer means a person who holds a current State Seniors Card issued by the State Government, or who has the qualifications to hold such a card and has applied for the card but has yet to be issued with the card. 183—Application of money in respect of rates If a council receives or recovers an amount in respect of rates, the amount will be applied as follows: (a) firstly—in payment of any costs awarded to, or recoverable by, the council in any court proceedings undertaken by the council for the recovery of the rates; (b) secondly—in satisfaction of any liability for interest; (c) thirdly—in payment of any fine; (d) fourthly—in satisfaction of liabilities for rates in the order in which those liabilities arose. 184—Sale of land for non-payment of rates (1) If an amount payable by way of rates in respect of land has been in arrears for three years or more, the council may sell the land. (2) Before a council sells land in pursuance of this section, it must send a notice to the principal ratepayer at the address appearing in the assessment record— (a) stating the period for which the rates have been in arrears; and (b) stating the amount of the total liability for rates presently outstanding in relation to the land; and (c) stating that if that amount is not paid in full within one month of service of the notice (or such longer time as the council may allow), the council intends to sell the land for non-payment of rates. (3) A copy of a notice sent to a principal ratepayer under subsection (2) must be sent— (a) to any owner of the land who is not the principal ratepayer; and (b) to any registered mortgagee of the land; and (ba) to the holder of any caveat over the land; and (c) if the land is held from the Crown under a lease, licence or agreement to purchase—to the Minister who is responsible for the administration of the Crown Lands Act 1929. (a) a council cannot, after making reasonable inquiries, ascertain the name and address of a person to whom a notice is to be sent under subsection (2) or (3); or (b) a council considers that it is unlikely that a notice sent under subsection (2) or (3) would come to the attention of the person to whom it is to be sent, the council may effect service of the notice by— (c) giving public notice of the notice; and (d) leaving a copy of the notice in a conspicuous place on the land. (5) If the outstanding amount is not paid in full within the time allowed under subsection (2), the council may proceed to have the land sold. (6) The sale will, except in the case of land held from the Crown under a lease, licence or agreement to purchase, be by public auction (and the council may set a reserve price for the purposes of the auction). (7) The exception under subsection (6) relating to land held from the Crown will not apply if the Minister responsible for the administration of the Crown Lands Act 1929 grants his or her consent to the sale of land by public auction. (8) An auction under this section must be advertised on at least two separate occasions in a newspaper circulating throughout the State. (9) If, before the date of such an auction, the outstanding amount and the costs incurred by the council in proceeding under this section are paid to the council, the council must call off the auction. (10) If— (a) an auction fails; or (b) an auction is not to be held because the land is held from the Crown under a lease, licence or agreement to purchase, the council may sell the land by private contract for the best price that it can reasonably obtain. (11) Any money received by the council in respect of the sale of land under this section will be applied as follows: (a) firstly—in paying the costs of the sale and any other costs incurred in proceeding under this section; (b) secondly—in discharging any liabilities to the council in respect of the land; (c) thirdly—in discharging any liability to the Crown for rates, charges or taxes, or any prescribed liability to the Crown in respect of the land; (d) fourthly—in discharging any liabilities secured by registered mortgages, encumbrances or charges; (e) fifthly—in discharging any other mortgages, encumbrances and charges of which the council has notice; (f) sixthly—in payment to the owner of the land. (12) If the owner cannot be found after making reasonable inquiries as to his or her whereabouts, an amount payable to the owner must be dealt with in accordance with section 6 of the Unclaimed Money Act 2021 as money the owner of which cannot be found. (13) If land is sold in pursuance of this section, an instrument of transfer or conveyance (as appropriate) under the council's common seal will, on registration, operate to vest title to the land in the purchaser. (14) The title vested in a purchaser under subsection (13) will be free of— (a) subject to subsection (14a), all mortgages, charges and caveats; and (b) except in the case of land held from the Crown under lease, licence or agreement to purchase—all leases and licences. (14a) The title vested in a purchaser under subsection (13) will not be free of a caveat held by an agency or instrumentality of the Crown, unless that agency or instrumentality consents to its discharge. (15) An instrument of transfer or conveyance in pursuance of a sale under this section must, when lodged with the Registrar-General for registration, be accompanied by a statutory declaration made by the chief executive officer of the council stating that the requirements of this section in relation to the sale of the land have been observed. (17) A reference in this section to land or title to land is, in relation to land held from the Crown under lease, licence or agreement for purchase, a reference to the interest of the lessee, licensee or purchaser in the land. (18) This section does not authorise the sale of non-rateable land on account of the non‑payment of a service charge. (19) This section does not apply where the payment of rates has been postponed under, or in accordance with, another provision of this Act (until the postponement ceases to have effect or unless the rates become rates in arrears under the terms of the relevant provision). 185—Procedure where council cannot sell land (1) If after a council has made reasonable attempts to sell land on account of arrears of rates it appears that the council has no reasonable prospect of selling the land within a reasonable time, or if the current valuation of land under this Part is less than the amount of outstanding rates, the council may apply to the Minister who is responsible for the administration of the Crown Lands Act 1929 for an order under this section. (2) On the receipt of an application by a council under subsection (1), the Minister may, after consultation with the council and being satisfied that it is appropriate to do so, order— (a) in the case of land held from the Crown under a lease, licence or agreement for purchase—that the land be forfeited to the Crown (and the lease, licence or agreement is cancelled); (b) in any other case—that the land be transferred to the Crown or to the council. (3) An order under subsection (2)— (a) must be in writing and signed by the Minister; and (i) in the case of land held from the Crown under a lease, licence or agreement for purchase—operates to cancel the lease, licence or agreement; (ii) in any other case—operates as an instrument of transfer passing title to the land to which it relates. (4) No stamp duty is payable on an order under subsection (2). (6) If an order is made under this section— (a) the land to which the order relates is freed of any charge against the land that exists in favour of the council; and (b) any outstanding liability to the council in respect of the land is discharged.