Page 294 - Week 01 - Thursday, 14 February 1991
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MR MOORE: I take an interjection from Mr Duby. It is 20 per cent per annum monthly. I quite accept the interjection. I was not intending to present it the other way. Even that, I realise, is too great for this Government.
Ms Follett: Charge it to Westpac.
MR MOORE: Nevertheless, a 20 per cent interest rate, of course, is far higher than that charged by any of the banks, including the one mentioned in the interjection. It would normally be considered excessive, because it is a double penalty for those who cannot find the money for their rates. What is the Alliance Government intending to do to assist those people?
MR KAINE: That, clearly, is a matter for the Minister for Finance, and I suggest that the question be directed to him.
MR SPEAKER: Mr Duby is prepared to take that question.
MR DUBY: Given the way the question was directed, I am quite happy to answer it, Mr Speaker. I thank Mr Moore for the opportunity to comment on these matters. There is no question about the fact that, in essence, the details of what Mr Moore talked about are correct. If people, for whatever reason, fail to meet the payment of their rates by their instalment that is due on a quarterly basis, the legislation that pertains to the payment of rates specifies that the full amount is then due and, as that amount goes outstanding, a rate of 20 per cent per annum is charged and charged on a monthly basis, which is, basically, what Mr Moore outlined.
I should point out that I do not regard the 20 per cent interest rate as being iniquitous at all. It is a similar rate to that charged, for example, by the Taxation Office on outstanding taxation bills which are not paid on time, and a similar rate to that charged by other Commonwealth departments throughout the country. It seems to be a standard rate that is applied. Needless to say, there should be some incentive to make people pay on time, because the payment of rates is an imposition that all of us in this community have to bear, and it is not fair that those who do meet their commitments and make that payment on time then subsidise those who deliberately choose not to pay their rates on time.
The other point that I think needs to be borne out is the simple fact that the loss of the right to pay your rates by instalment applies, of course, in cases where people have not paid and have not entered into any negotiations with the rates office. If people are aware that their instalment is due on a certain date, it really behoves them, I believe, to contact the rates office - just as they would contact any other financial institution in the city - and say that they cannot meet this instalment on this day
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