Many Victorian councils are declining to waive rates for residents with financial difficulties.

The Municipal Association of Victoria, which represents local government bodies, says councils face an intricate task of balancing the necessity to support financially strained residents while guaranteeing essential services to the broader community. 

A recent investigation by Council Watch Victoria collected responses from 44 out of the 79 Victorian councils. 

Just seven councils verified the implementation of rate waivers in the ongoing fiscal year until March 31. 

Although the exact number of individuals seeking rate waivers remains unrecorded, the investigation found that just $360,000 out of a combined $3.1 billion in rates income across the participating councils had been waived. 

Council Watch Victoria says this discrepancy indicates a lack of understanding and empathy towards financial hardships faced by many. 

In 2021, the Victorian Ombudsman scrutinised local councils' response to residents struggling with finances. 

The report exposed disparities in practices among councils, with some handling these challenges well, while others exhibited unfair and unjust practices. This included withholding information about deferral or waiver options, rejecting such requests outright, and imposing penalty interest on outstanding debts.

Ombudsman Deborah Glass acknowledged that changes have been set in motion since her report's release, with the state government introducing the Local Government Amendment (Rating Reform and Other Matters) Bill 2022. 

This legislation aims to define and address financial hardship explicitly, necessitating early engagement between councils and ratepayers. 

Glass says her office has facilitated successful conciliations between councils and ratepayers, resulting in waivers and interest charge reductions.

Municipal Association of Victoria (MAV) president David Clark says councils continue to collaborate with authorities to ensure appropriate support reaches those most in need.