Penalty Interest on Overdue Amounts

To ensure that the many ratepayers who pay their rates accounts to the City by the due dates are not disadvantaged, the City of Vincent has resolved that it will charge interest on rates balances which remain unpaid after the due date.

Section 6.51 of the Local Government Act and the Local Government Financial Management Regulations provide for interest to be charged on 'Overdue Amounts' which are defined as rates which remain outstanding beyond the due date specified on the Annual Rates Notice.

The maximum interest rate which can be charged on outstanding rates amounts is determined by the Local Government Financial Management Regulations. Currently, this amount is set at 11% per annum or 0.0301% per day and is calculated daily on amounts that are not paid within 35 days of the issue date of the notice.