The interest charged on overdue rates by Hunter councils looks set to exceed 10 per cent.
Newcastle councillors will on June 25 vote on a recommendation to increase the interest rate charged on outstanding rates from 9 per cent to 10.5 per cent in the 2024/25 financial year in line with the maximum rate set by the Minister for Local Government.
It comes after other Hunter councils, including Lake Macquarie, Cessnock and Maitland, adopted the same interest rate rise.
It is the second consecutive year the interest rate has increased, up from 6 per cent in the 2022-23 financial year.
The report to Newcastle council said it was proposed to apply the maximum rate of interest in order to maintain a sufficient deterrent to the late payment of rates and charges.
Estimated income from interest charges in Newcastle for the next financial year is $492,000 based on existing and anticipated take-up of hardship assistance arrangements under the proposed rate.
However, the report noted the council waived interest for ratepayers who entered into payment plans on the basis of financial hardship, for ratepayers who would suffer hardship as a result of the interest and where circumstances causing late payment of the outstanding rates and charges were beyond the control of the ratepayer.
The council also funds a rates voucher scheme administered by three community welfare agencies.
A campaign is proposed to run from June 24 to September 6 promoting City of Newcastle's hardship options, through paid messaging on social media, on the council's website, via a rates insert and in the July edition of City News.
