Victorian Consolidated Legislation

Local Government Act 1989 - SECT 172

Council may charge interest on unpaid rates and charges

172. Council may charge interest on unpaid rates and charges



(1) A Council may require a person to pay interest on any amounts of rates and
charges-

   (a)  which that person is liable to pay; and

   (b)  which have not been paid by the date specified under section 167 for
        their payment (or, in the case of late notices, by the date specified
        under section 158(4B)).



(2) The interest-

   (a)  is to be calculated at the rate fixed under section 2 of the
        Penalty Interest Rates Act 1983 that applied on the first day of July
        immediately before the due date for the payment; and

   (b)  becomes payable-

   (i)  if the payment was payable in instalments only, on and from the date
        on which the missed instalment was due; or

   (ii) if the payment was payable either in instalments or in a lump sum and
        the first instalment was paid by the date it was due, on and from the
        date on which the relevant subsequent missed instalment was due; or

   (iii) if the payment was payable either in instalments or in a lump sum and
        the first instalment was not paid by the date it was due, on and from
        the date on which the rate or charge was declared; and

   (c)  continues to be payable until the payment or the recovery of the rates
        or charges.

(2A) The Council may continue to require a person to pay interest in
accordance with this section after it obtains a court order requiring the
payment of the rates and charges payable (but only until the payment or the
recovery of the rates or charges).



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(3) A Council may exempt any person from paying the whole or part of any
interest either generally or specifically.

(4) A Council may recover interest due to it on rates and charges in the same
way as it may recover the rates or charges.