New regulations from the State Government will prohibit interest charges on rates that are deferred due to financial hardship. This policy change aims to alleviate the financial burden on ratepayers facing various hardships, such as job loss, illness, and unforeseen life events.
The Casey Council has confirmed that it currently waives interest for residents who have been approved for financial hardship deferrals. However, the Council’s public hardship policy has not yet been updated to reflect the broader definitions and requirements set forth by the State’s new guidelines. An updated policy is expected to be presented to the Council by mid-2026.
Understanding the New Guidelines
These guidelines, released in December 2025, require councils to treat ratepayers facing hardship “fairly, compassionately and proportionately.” A significant change is the mandate that interest must not be charged when payments are formally deferred due to hardship.
The new rules expand the definition of hardship, encompassing situations beyond mere financial inability to pay. They include sudden job loss, mental health issues, family violence, scams, and natural disasters, providing a more comprehensive understanding of what constitutes hardship. This aims to offer residents a temporary reprieve from payments, allowing them time to regain financial stability.
Financial hardship is classified as a more severe situation, where paying rates would prevent individuals from affording essential needs like food, housing, and medical care. While quarterly installments remain the standard billing method, councils are encouraged to offer more flexible payment options, including weekly or monthly plans. Under the new guidelines, if a payment plan follows a hardship deferral, it must also be free of interest charges.
Current Support Measures and Future Plans
The Casey Council has implemented several measures to support residents, such as flexible payment plans available to all ratepayers. According to Mayor Cr Stefan Koomen, a new payment gateway was launched in September 2025, allowing for easier payment scheduling. “This puts residents in control of their payment schedules and lets people manage payments in the way that works for them,” he stated.
The Council’s existing 2021 Rates Hardship Policy allows ratepayers to apply for rate deferrals and waivers of interest and legal charges. It is important to note that if someone is approved for a financial hardship deferral, no interest will be charged during that period, and the situation is regularly reviewed for any changes.
“Council is also in the process of updating related policies in accordance with the new Ministerial Guidelines; however, residents who are having difficulty paying their rates are encouraged to contact Council as soon as possible to discuss available options,” Mayor Koomen added.
The push for these reforms comes at a crucial moment for many households in Casey. The Casey Residents and Ratepayers Association (CRRA) has noted a spike in rate arrears over the past five years, a trend that correlates with the economic impacts of the Covid-19 pandemic and rising living costs.
Anthony Tassone, president of CRRA, emphasized the necessity of these reforms. “People in our community are hurting financially. Rising living costs, insecure work, illness, and unexpected life events are pushing many households to the brink,” he remarked. He further stated that stopping interest on deferred payments and pausing enforcement during hardship assessments would help residents avoid falling into deeper debt.
Mr. Tassone also highlighted the importance of prompt action from the Council. “At this stage, Casey’s publicly available hardship policy predates the new requirements. We’re urging Council to update its policy as a priority and clearly communicate the new protections to ratepayers,” he said.
For residents looking to apply for a rates payment plan or assistance due to financial hardship, they can visit the Casey Council’s official website for more information.
