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: