|Am I eligible?||Why postpone?||How to postpone?||FAQ||Legislation|
WHAT IS THE SCHEME?
The Seniors Rate Postponement Scheme started on 1 July 2007.
If you are eligible, the Scheme will permit you to postpone payment of a large part of your council rates. After paying a minimum amount by the due date, the rest can be simply deferred until you or your executor sells or transfers your home.
The Scheme is similar to a reverse mortgage. It works for you, by relying on the equity that you have built up (and will presumably continue to build up) in your home. Rates that are postponed attract a standard interest rate (currently 6.5% per annum).
Both the postponed rates and the accruing interest will have the effect of transferring to the council a small proportion of the value of your home. However, you retain complete control. If you choose to enter the Scheme, every rates bill (once every three months) will include a full statement, and will also advise you of your options. Provided you pay the minimum amount by the due date, you will have flexibility to choose how much or how little of the rest to postpone.
Whenever you want, you can change how you use the Scheme. You can choose to pay off part or all of any rates you have previously postponed, or simply allow your home's expected growth in value to pay the rates bill, when you are eventually ready to sell your home.