Final reminder notices for rates issued by Hepburn Shire have led to a significant backlash by people who believed the letters were formal debt collection notices that could lead to changes in credit ratings.
The Council has issued a statement to clarify the notices which makes it clear that the notices are not debt collection notices and do not impact credit ratings.
As part of maintaining financial sustainability, Council is required to follow up on overdue accounts and is acting in accordance with their Revenue Collection and Financial Hardship Policy, the Local Government Act 1989 (which sits alongside the Local Government Act 2021) and the Penalty Interest Act 1983.
Just under 3000 ratepayers have received final reminder notices for 2025/26 rates which were due on the 31 May 2026. If rates aren’t paid the Shire may levy a penalty interest rate.
The controversy over the final reminder notices follows Council’s appointment of CollectAU as a service provider to manage the distribution of final reminder notices. CollectAu is a debt collection agency.
Council maintains that CollectAU’s role at this point in time is only to provide administrative support to assist with efficient processing of notices. Council has indicated that the notices are designed to encourage payment and/or contact with Council.
Unfortunately CollectAu’s role was not clear. Not surprisingly, a number of people made the assumption that formal debt collection notices were being issued.
The reminder notices were processed using payment data from early June. This meant that a number of payments made on the due date or in the first few days of June were not recorded and a number of residents who had paid received notices because of bank processing delays.
The use of a debt collection agency and data timing issues thave caused considerable concern and anger, forcing Council to clarify its position.
A number of residents who received notices have complained and it is clear that Council needs to improve its communication and processing of final reminder notices to prevent misunderstanding and concern in the future.
For those who have not made payment and need assistance, Council’s Finance team can be contacted on (03) 5348 2306.
