Council continues downward pressure on rates
STATEMENT FROM DEPUTY MAYOR CR BILL TREVOR:
I wanted to clarify some misinformation that is circulating in the community at the moment.
The early payment discount was removed in 2020-21 because it was inequitable and unfairly disadvantaged people who couldn’t afford to pay on time.
Council made this decision during Covid as part of its financial support package to assist those that were financially vulnerable.
The way rates are calculated is complex and I understand that this is a difficult concept to absorb but that is the fact.
To achieve this, Council reduced the rate in the dollar for all ratepayers making the general rate increase that year essentially zero.
Council feels this is a more equitable approach which does not place additional pressure on any resident having difficulty paying their rates.
The outcome of implementing these measures, and Council working collaboratively with ratepayers on payment plans where needed, is that overdue accounts are at an historic low.
The total balance of overdue accounts is currently sitting at 1.57%, the lowest level since Bundaberg Regional Council’s inception in 2008.
There are 18 Councils in Queensland which do not offer an early payment discount and this number has increased in recent years.
To reinstate the early payment discount, Council would need to increase rates by 10%.
Example:
The following is a copy of two actual rates notices issued to the same household. One with the discount and the other after the discount was removed.
This shows how the outcome of removing the early payment discount makes the process fairer because everyone pays the “discounted” amount, not just those that can afford to pay on time.
