Deferred council rates

Does deferring council rates make financial sense?

Deferred council rates

Frank thinks that deferring his council rates is a better option than taking a concession. Does this make financial sense?

Q. Frank

Pensioners have the option of deferring council rates rather than taking a discount. It occurs to me that if you are likely to remain in the same place for a long time this might be a better option as no interest is charged and inflation will reduce the value of the debt. What do you think?

A. Before taking any financial decision, you should consult a financial advisor who can ensure you are fully aware of the implications. We are not licensed to give such advice so any information is general in nature.

Firstly, some councils do charge interest on deferred rates, albeit at a lower rate.

Secondly, the debt will be recovered once your property has been sold so you will need to be certain that there is the capital in your home to cover the debt and that it will not adversely affect your finances.


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    26th Jul 2013
    At 10% I don't feel that rhis would be a viable option in our case.
    Pass the Ductape
    26th Jul 2013
    Our council offers a substantial cut in the amount of rates one needs to pay if paid by the due date, which makes it totally worthwhile to pay on time. Not paying on time incurs a nominal interest rate payment which accrues over time as the rates continue in arrears. It can also mean that your name is included on a 'history of bad credit' list. Personally, It wouldn't be an ambition of mine to end my days worrying about how I could dodge paying a few dollars in rates.
    26th Jul 2013
    My mother lost her house over rates. She was in her late seventies and had early onset dementia. She refuse help then and still does today. The council decided to foreclose on the amount of rates owed and told her that if she didn't pay within three months they would seize the house and evict her. She was receiving a pension and could get the funds. I am the only child and both myself and my husband were students and could help financially at all. She ended up selling a double story Queenslander on a double allotment of land for $60000 to a friend who said she couldn't afford any more. Even thought the amunt owed was probably a tenth of that she said she wouldn't help unless my mother sold the house to her. Today my mother is penniless, living on the charity of friends, refuses any help and wonders how things got this bad. if only she hadn't tried to save money by delaying the rates.
    28th Jul 2013
    I think Frank's question was whether paying all the rates at once or taking advantage of the offer to pay them in 2 or 3 or 4 allotments.I usually pay the whole amount at once any time I have enough money in the bank and I assume I will not have further expenses later on in the year.Otherwise I am glad of taking the offer and pay in allotments.

    21st May 2014
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    7th Aug 2015
    I have no idea regarding the deferring council rates. As per here shared it is better to consult a financial advisor before taking a decision. It will help you a lot to overcome this situation wisely. Keep updating! microsoft excel 2013 help

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