What Happens if I Don’t Pay My Rates?

February 12th, 2023

6 min read

Paying your local government rates is an important part of living in a community and ensuring that your area is well maintained and functioning properly. Unfortunately, many people do not understand the consequences of not paying their rates and it can cause serious issues for them down the line. This article will dive into what happens when you do not pay your rates, the potential pitfalls, and the steps you can take to ensure that you remain on top of your payments. It is important to understand the consequences of not paying your rates so that you can avoid any potential financial hardship.

What are Council Rates?

Council rates are a tax charged on real estate by the local government. Council rates are used to fund local government services such as street cleaning, road maintenance, parks, and libraries. Council rates are not a specific percentage of the value of your property, but rather a set amount per household in the area. Different councils have different rates and rules for calculating these, so be sure to check with your local council to find out what you will need to pay each year. If you are living in a home that you own, you will be responsible for paying council rates. If you are a renter you won’t need to pay council rates - that’s usually the responsibility of your landlord.

The Penalty of Not Paying Your Rates

When you do not pay your rates, you are essentially taking advantage of the community in which you live. As a rate-paying resident, you are part of a system in which everyone does their part and helps keep the local government functioning. When you don’t pay your rates, it creates a burden for other ratepayers and puts stress on the city’s budget. When you do not pay your council rates, you can be liable for late fees and penalties, and in an extreme scenario the council may take legal action.

What to Do If I can’t Pay Them

If you are unable to pay your council rates, the first thing you should do is talk to your local council to discuss your options. Many councils have assistance programs that can help you out with your rates if you qualify. These programs are sometimes referred to as “rate relief”. Your council also has the power to grant you a payment plan if you are struggling to pay your rates. While it can be daunting to ask for assistance with your rates, you are doing a great service to those around you by remaining honest and upfront about your situation. If you cannot make any payments towards your rates, you will want to contact your council immediately and let them know what your situation is. This will give you more time to try and find assistance and avoid any legal consequences. While you are trying to get your rates paid off, it is important that you continue to communicate with your council and let them know how you are progressing.

Find Out What You Can Afford

In order to avoid any issues with your council, you should try to get a clear idea of what you can afford to pay each month. You should look at your income and other expenses to see how much you can reasonably afford to pay each month. Once you have this number, you can then go to your council and use it as a guideline for what you should be paying each month. It can be tempting to try and pay as little as possible towards your rates, but it can create a lot of unnecessary stress for you later on. You should work with your council to come up with a payment plan that works for both parties. If your payments are affordable, it will be far less stressful for you and your family as well as your local council

Look for Assistance Options

If you can’t find a payment plan that works for you, you should look into local assistance programs that can help you pay your rates. As mentioned, many councils have these programs and it is not something to be embarrassed about. It is important to do everything in your power to avoid legal consequences and keep your council happy. Some of the most common types of rate assistance programs are the following:

• Discounted rates
• Payment plans/extensions
• Repayment plans

Communicate with Your Local Council

Communication is a huge part of living in a community. While you are responsible for paying your bills, it is also important that you are honest with your council about your situation. If you are having trouble paying your rates, you can request a payment plan or let your council know that you need assistance. While you are trying to get your rates paid off, it is important to stay in communication with your council so that they don’t take legal action against you. You can also use this time to work on improving your finances so that you can quickly get out of the assistance program and get back to paying your own bills. If you are having trouble with your council rates, it is important to get in touch with your council as soon as possible. Communicating with your council will help you avoid penalties and make your situation less stressful. It is important to know the consequences of not paying your rates so that you can avoid them and live happily in your community.

Split Your Rates into Affordable 4 Equal Payments

Council rates can be a big bill every year, but they don’t have to be a stressful one. If you are having a hard time meeting your obligations, you can work with your council to come up with an affordable payment plan. However, if you don’t think that you can realistically make those payments each month, you can also try to negotiate with your council to split your rates into four equal payments. Council rates are typically due once per year, and many councils allow you to split your payment into four equal instalments throughout the year instead. This can make the payment much more manageable and might allow you to avoid taking out a loan or having your credit score dented. It can be a good idea to negotiate this with your council before your first payment is due. This will give you more time to save up the money and make the payments on time.

Download Wagetap Today

Wagetap is an app designed to help Australians achieve financial freedom. You can get up to $2,000 of your pay as soon as you're approved. Wagetap can also cover bills up to $600 and you repay in smaller instalments. You can use this to pay off all, or a portion of, your council bill.

Council rates are an important part of living in a community and maintaining the local infrastructure. However, when you don’t pay your rates, you are taking advantage of the people around you, and it can cause serious financial and legal issues.It is important to understand the consequences of not paying your rates so that you can avoid any potential financial hardship.