Ratepayers living in the Hepburn Shire owe their council almost $6 million, and it could impact council services if it isn’t rectified soon.
What happened? At the Hepburn Shire Council meeting on September 22, council reviewed a long-term financial plan. During the review, council debt was partially attributed to ambitious infrastructure projects, but largely linked to unpaid rates numbering in the millions of dollars.
The council has plans to investigate the current collection processes, and navigate legislative changes about following up debt in court.
The plan: Council outlined several steps moving forward, including:
Working collaboratively with ratepayers to ensure debts are paid, including supporting community members enduring financial hardship;
An internal review of the council’s Revenue Collection and Financial Hardship Policy;
In future, commencing court action for properties who have been given 24 months notice including payment options available.
The deal with rates: Rates are the primary source of revenue for councils, and they are used to fund essential infrastructure and services within the community.
In Hepburn Shire, the amount of outstanding rates has increased from $1.2 million in 2015 to $5.7 million as of June 30 2026. This represents 20 percent of council’s annual rate-based income in arrears.
What happens if no one pays? If rates remain unpaid, there are a number of steps that follow.
Reminder notices are the initial alert to inform residents their rates remain unpaid;
Legal action can follow, in which councils can initiate court proceedings if the balance has remained outstanding for 24 months;
Councils can place a “lien” on a property, which is a secure guarantee the debt will be paid or the property can be seized, or forcibly listed for sale;
Property seizure is the last resort.
In 2025 and 2026, Hepburn Shire employed debt collection agency CollectAU to distribute final notices.
During the council meeting, it was acknowledged that issuing the final reminder notices under the CollectAU letterhead caused concerns amongst residents, who interpreted it as debt collection final notices that could impact property owners’ credit rating.
Council flagged that moving forward, these letters would only be dispensed under the Hepburn Shire letterhead.
What people said: Hepburn Shire Mayor Tony Clark told the Brolga there were “a couple things to investigate” within the council’s rate collection policy.
“We need to go out and collaborate with the community to work out how to make it as non-threatening as possible so they are comfortable and feel free to be able to have a chat,” he said. Of all the rates owed, only 200 residents are currently on payment plans.
Mayor Clark said he believed one of the most prominent factors was cost of living pressure.
“It has gone up for so many people, and it’s an ongoing issue. It’s tough times right across the board,” the Mayor said. He added that it’s important to note that at the moment, the debt isn’t impacting essential services.
“Rates don’t disappear, you always get them back when the house is sold down the track,” he said. “But we need to minimise that, because it will impact the future if it keeps going”.
What next? Council will continue its investigation and review of rates collection policies.
Header Image: Visit Victoria