Outstanding rates

Media Response 12 October 2018

Journalist’s background: The Southern Gazette submitted a media enquiry regarding unpaid rates to the City of South Perth. The enquiry was submitted following an article about unpaid rates published on the Community News website.

Please attribute the following quotes to City of South Perth CEO Geoff Glass.

How much is the City of South Perth owed in unpaid rates?

 The City had approximately $2 million outstanding as at 30 June 2018 (including deferred rates and charges).

What is the monetary break down per suburb? Or if unable to list, what’s the suburb with the most amount in rates owing? 

 Suburb  Approximate Outstanding Balances ($
 Como  $665,000
 Karawara  $70,000
 Kensington  $171,000
 Manning  $145,000
 Salter Point  $120,000
 South Perth   $720,000
 Waterford   $110,000

How does this compare to previous financial years?

The City had approximately $1.3 million outstanding as at 30 June 2017 (including deferred rates and charges).

What impact does that have on the City and the services it provides?

The impact of uncollected rates debtors affects available cash reserves available for City operations. This can impact on the timing and extent of project delivery as well as asset acquisition and maintenance. 

What response does the City have to residents who don’t pay their rates?

The City understands that sometimes people experience financial hardship which makes it difficult to meet all financial commitments when they are due. The City is happy to work with ratepayers to develop a mutually acceptable payment arrangement. Ratepayers wishing to do so can contact the City's Rates Officers to discuss their options. They will be asked to complete a Rates Payment Arrangement Application and submit this to the City before the special arrangement can be approved.

To ensure I have the rate amounts, what are the City of South Perth’s rates?

 For the 2018/2019 financial year, the South Perth ‘rate in the dollar’ is 0.066612. This means that 6.6612 cents are levied as rates for every dollar of the Gross Rental Value provided for properties within the City of South Perth. In benchmarking against other metropolitan local governments, the City continues to be competitive. Local governments with lower rates typically have a large industrial or commercial rate base. In comparison, commercial properties in the City represent less than 12% of the total rate base.

Under the Local Government Act of 1995, a council is able to take possession of a property if the rates are left unpaid for three years or more. On how many occasions over the past 10 years has this been the case in the City?

Within the last 10 years, Council has previously approved four properties to be sold pursuant to Section 6.64 of the Local Government Act 1995.

Media contact

For media enquiries, please contact the City’s Communications Officer.