POLICY NAME: FINANCIAL HARDSHIP ASSISTANCE POLICY No: 1.3

1.1 PURPOSE:

The purpose of this policy is to provide guidance to the community as to what council support is available should they be experiencing genuine financial hardship. The policy also provides a framework for the assessment of hardship applications.

1.2 SCOPE:

This policy applies to ratepayers experiencing genuine and serious financial hardship and needing assistance to meet both their basic needs and their rate payment obligations to Council. It is not intended to be used to maintain financial positions for those who do not need it and are not genuinely impacted by serious financial hardship.

1.3 KEY PRINCIPLES:

In applying this policy, council will be guided by the following principles:

• Compliance with relevant statutory requirements;
• Flexibility in providing payment options and processes that meet local needs and the special circumstances of those facing hardship;
• Fair, equitable and respectful treatment of all applicants facing financial hardship;
• The suspension of debt recovery and/or legal action while a ratepayers hardship application is awaiting determination, and subsequently if that application is approved; and
• Respecting confidentiality, such that information provided by applicants is treated as private and confidential and can only be used for the purposes of assessing the hardship application and not be made available to third parties (with the exception of referral to council’s debt collection agency).

1.4 DEFINITIONS:

The following definitions apply to this policy:

Genuine financial hardship – Occurs when a ratepayer is genuinely unable to pay the rates and charges owed and unable to meet other financial oblications.

Policy – means this policy

Ratepayer – Means a person who is liable to pay rates on a property in Brighton Council.

Rates & charges – Means council rates, charges and levies that appear on a rates notice.

 

2. POLICY:

2.1 Genuine Financial Hardship

Genuine financial hardship does not arise where it is inconvenient to pay the amount of rates owed or it is subject to the timing of income: for example, holiday pay, dividends, lump sum payment. Genuine financial hardship may occur in the following:

• Loss or significant reduction in family income due to job loss or business closure (or both)
• Serious illness resulting in incapacity to work
• Death in the family, or
• Any other factor that results in an unforeseen and substantial change in the capacity of the ratepayer or debtor to meet their financial obligations.

2.2 Statutory Requirements

Sections 125, 126, 127 & 129 of the Local Government Act 1993 (the Act) set out the circumstances in which a council can consider an application for postponement of payment of rates on the ground of hardship.

Council’s Rates and Charges Policy (Policy 1.6) and Debtor Management Policy (Policy 1.12) also apply and must be read in conjunction with the Act and does not take precedence over the Act requirements.

2.3 Eligibility

A ratepayer may be eligible for consideration for hardship assistance in the payment of overdue rates and charges where:

• They are unable to pay amounts when due and payable for reasons beyond their control, and
• Payment when due would cause the person genuine financial hardship

Any ratepayer, who cannot pay their rates or charges due to genuine financial hardship may apply to council for assistance at any time. Ratepayers, are encouraged to contact council to seek assistance as soon as practicable.

2.4 Assistance under this Policy

This policy provides the framework for the assessment of an application from a ratepayer of a property who cannot pay their rates and charges and payments as a result of experiencing genuine financial hardship.

A ratepayer who believes they are suffering genuine financial hardship can apply to council for either:

• Waiver of interest in respect of the Rates, charges and levies in-part or in-full (i.e. not being required to pay any extra fees that council may have charged for the rates, charges and levies not being paid on time); or
• Deferral of the payment of rates, charges and levies (i.e. paying the rates, charges and levies after they would normally be due).

A ratepayer may apply for one or more of the above types of relief when making an application.

2.5 Evidence of genuine financial hardship

If a person makes an application for relief in accordance with this policy, council may ask the person to provide evidence that they are suffering genuine financial hardship.

Evidence that council may ask for to assist with the assessment may include and is not limited to:

• Written reasons detailing the circumstances in which the person is unable to pay the rates and charges when they fall due and payable
• Documents that show the ratepayer has sought help from a financial counsellor (such as a receipt from a booking with a financial counsellor)
• A statutory declaration from someone who is familiar with the ratepayer’s circumstances (family doctor, bank officer, welfare officer, Government agency)
• Bank statements, medical certificates, or other documentary evidence that demonstrates the circumstances that have caused or are symptomatic of the ratepayers genuine financial hardship
• Evidence of loss of main sources of income, and
• Evidence of any qualifications for Federal Government assistance in response to their financial hardship.

If council staff require additional evidence to support an application by a ratepayer, they will explain exactly what they require and why they need it to determine the application.

2.6 Application Process

Councils rates relieve application form and evidence of financial hardship are to be submitted by the ratepayer in writing to the Chief Executive Officer for assessment.

The provision of supporting evidence with the application will assist the prompt assessment of the application. The application form will be available on Councils website, alternatively the form may be posted or emailed.

Council staff will contact the ratepayer once the application is received and provide advice regarding the assessment process, including if there is any other information required. Council may refer an application to an independent accredited financial counsellor for assessment if it deems this to be necessary.

The application will be valid for a maximum period of 12 months from the date of approval. The ratepayer will be required to reapply prior to the end of each period and establish whether their circumstances have changed or not.

2.7 Delegated Approval

Determination on applications in accordance with this policy will be subject to review and approval by:

• Rates Officers – where alternative payment arrangements result in the full payment of rates by 30 June of the application year.
• Director of Corporate Services – for amounts less that $2,500.
• Chief Executive Officer – for amounts greater than $2,500.

2.8 What happens if an application is approved?

Each application received in accordance with this policy will be reviewed and determined in accordance with the policy requirements. The ratepayer will be advised in writing of council’s decision.

For each approved application, council staff will put in place necessary arrangements. Should there be any error or mis-calculation on a subsequent rates notice, the ratepayer shall be entitled to rely upon the written advice provided in relation to the application.

 

REFERENCES:

• Local Government Act 1993, Part 9 – Rates and Charges1, particularly:
  • Section 86A – General principles in relation to making or varying rates
  • Sections 125-127 – Postponement of payment
  • Section 128 – Late payments
  • Section 129 – Remission of rates
• Rates and Charges Policy No. 1.6
• Debtor Management Policy No 1.12

 

ADMINISTRATIVE DETAILS:

Policy compiled:	December 2024
Adopted by Council:	21/04/2020; 18/02/2025
Reviewed:	February 2025; February 2026
To be reviewed:	February 2029; February 2030
Responsibility:	Director of Corporate Services

 

[Signed]
CHIEF EXECUTIVE OFFICER

Being the General Manager as appointed by Brighton Council
pursuant to Section 61 of the Local Government Act 1993