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SENIORS RATE POSTPONEMENT SCHEME

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FAQ


Does my council participate?

All councils in South Australia participate.  You have the right to postpone rates, if you choose, through section 182A of the Local Government Act 1999.


Is there an application fee?

No, there is no application fee. 

  
How is the Scheme funded?

The Scheme is funded, over time, by the interest that accrues on your postponed rates. The Council will charge an interest rate that is 1% above the wholesale rate that the Council is charged by its financing body, the Local Government Finance Authority. For 2008-09, this rate is 8.25%, so postponed rates will be accruing interest, this financial year, at 9.25%.


Can my Council reject my application?

Provided you are eligible, there is only one reason why a council may reject your application.  The Council is entitled to say “no” only if you have a mortgage on your home (entered into before 25 January 2007) and the total amount that you are entitled to borrow (or re‑borrow) under that mortgage exceeds 50% of the Valuer-General’s capital value of your home.  For most ratepayers, this valuation appears on your rates notice. Mortgages entered into after 25 January 2007 are irrelevant to a council for this purpose.

 
Do I need to re-apply every year?

No.  One application covers you for as long as you are eligible.  Provided your initial application is accepted, then every year after that you will be entitled to postpone any rates over the minimum amount.

 
What is the minimum amount that cannot be postponed?

The minimum amount of rates that cannot be postponed is $500 per year ($125 per quarter).  However you can reduce this even further, because all Seniors Card holders are entitled to a rates concession.  See the next two questions.

 
I am a pensioner.  Don’t I get a concession on my rates as well?

Yes.  The amount of the pensioner concession can be (if you choose) deducted from the $500 that cannot be postponed.  The pensioner rates concession is currently $190 per year.   For example, if your annual rates bill was $1200, and the pensioner concession reduced this to $1010, you could choose to pay as little as $310 in that year ($77.50 per quarter) leaving $700 to be postponed and attracting interest.  Alternatively, if you chose to pay $500 in that year  ($125 per quarter) the amount postponed and attracting interest would be $510.  More information about rate concessions can be found here.

 
What about my Seniors Card rate concession?

Holders of a State Seniors Card who do not receive the pensioner concession, are entitled to a State Government concession limited to $100.  Therefore Seniors who do not receive a pension can choose to pay as little as $400 in a year ($100 per quarter) on their rates notices, and postpone any amount by which their rates exceed $500 in the year.  More information about this rate concession can be found here.


What documents will I need to provide?

Just one piece of paper needs to accompany your application.  The Council will need to see independent documentary evidence about your mortgage, if any.  That means your application cannot be considered until you provide either:

·        Proof of the level of credit available under your mortgage, or

·        Proof that you have no mortgage over the property.

More information on this is available here.   If you are unsure, the Council will advise you how to obtain the necessary document.

 
Can I postpone rates on my shack or holiday house?

No.   The scheme applies only to your principal place of residence.   If you live for part of the time at one address, and part of the time at another address, you will need to nominate one as your principal place of residence and this must be, in fact, where you spend the greater proportion of your time.


Can I postpone rates on my investment property?

No. The scheme applies only to your principal place of residence. 

 
Can I change my mind after I join the scheme?

Yes.  After your application is approved, you can postpone payment of rates (apart from the minimum payment) as often as you wish, or not at all.  Every three months when you get a rates notice, you can choose how much to pay or postpone (subject to paying at least the required minimum).  Your rates notice will inform you how much has previously been postponed and how much interest has been added to the postponed rates.  You can choose to clear some or all of your postponed rates debt at any time.

 
I postponed rates, then increased my employment hours and had to give up my State Seniors Card.  What should I do?

You are eligible to postpone rates on your principal place of residence only if you (or your spouse, if a couple) holds a current State Seniors Card.  Therefore if you (or both of you) lose entitlement to a State Seniors Card (see eligibility) you must notify the Council that you are no longer eligible.  Failing to notify the Council within six months would be an offence.  While you are ineligible, you cannot postpone any more rates, but you do not need to repay any previously-postponed rates until/unless the ownership of the property is being transferred.  However, when you are once again eligible to hold a State Seniors Card, you can recommence postponing rates.

 
I am moving home.  Can the postponed rates from my old home be transferred to my new home?

No.  Selling the home is the trigger for the Council to call in the debt.  The proceeds of your sale will be reduced by whatever amount has accrued in postponed rates, plus interest.  However, if you are still eligible you can begin postponing rates on your new home.

 
My partner and I are not married.  Do the same rules apply to us as to married couples?

Yes.  For purposes of this scheme, “spouse” includes a de facto spouse.

 
My mum/dad is moving out, but we are not sure whether the home will be sold.  What should we do?

If one member of an eligible couple moves out, rates may continue to be postponed, provided that the person remaining in the house is the holder of a current State Seniors Card.  If no eligible Senior remains in the home, you must notify the Council within 6 months.  It is an offence to fail to do so.  If the home is no longer the residence of any eligible Senior, no further rates on the home can be postponed, but any previously-postponed rates do not need to be paid until the ownership of the property is being transferred.

 
Who do I speak to, for more information?

Your Council has Rates Officers who will be pleased to answer any other questions you may have.   You can find contact details for your Council here.