An SA council has sold seven properties as a last resort in its effort to recoup more than $100,000 in unpaid rates.
The Mid Murray Council announced last month it would sell off nine properties, mostly vacant land, as a last resort to recover $100,400 of unpaid rates following extensive efforts over several years to recoup the funds from the properties’ owners.
Council chief executive Ben Scales said one of the properties of the nine lot auction – lot 5 – was removed from to auction as a result of a payment plan being put in place prior to the auction.
“Seven out of eight sold, and one was held over, but I would call it passed in, and negotiations continue on that one,” he said.
The results are as follows:
Lot 1 – $4000
Lot 2 – $4000
Lot 3 – $4500
Lot 4 – held over
Lot 6 – $50,000
Lot 7 – $30,000
Lot 8 – $47,000
Lot 9 – $70,000
Mr Scales said lots six to nine covered their debts, while lots one to three didn’t.
“The market decides what the value of the property is … and the debt (on lots one to three) will be written off,” he said.
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Mr Scales said the auction attracted 30 people and while every effort is made to avoid selling people’s properties he was happy with the result.
“We don’t ever want to sell people’s properties but people also have a responsibility to pay their rates,” he said.
19 and 20 South Tce, Mount Mary – one of the properties on the original auction list.
“We want to work with people and we have a hardship policy in place and we understand that circumstances sometimes impact people’s ability to pay, so we’d encourage everyone to have a conversation with council in relation to that and potentially payment plans.
“But council is committed to undertaking steps to recoup debt from people that don’t pay their rates in accordance with the act.”
BH Partners’ Rob Brown, who sold the properties on behalf of the council with Peter Wright, said there had been good interest in the properties going in.
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The move comes shortly after the District Council of Loxton Waikerie sold 57 properties – mostly deceased estates – in a last-ditch attempt to recover more than $170,000 in unpaid rates.
They collectively sold for just over $500,000, with council chief executive David Beaton explaining most would be passed on to owners.
“We can only recover the rates, we have to pass on the rest of the funds to the mortgagee and the people that own the property,” he said in September.
Peterborough Council also sold eight properties under the hammer earlier in the year to recoup unpaid rates.
Councils are allowed to sell properties where rates have been in arrears for at least three years under Section 184 of the Local Government Act.
Lot 4 Sturt Highway, Annadale – one of the properties on the original auction list.
Mid Murray Council chief executive Ben Scales said at the time of the sale announcement every effort had been made to engage with property owners and negotiate alternative payment options.
“When council began this process in 2023, there were originally 70 properties identified that had unpaid rates totalling $746,000, which had been accrued over periods of between seven and 14 years,” he said.
“We understand that the sale of a property is a significant step.
“That’s why we have taken a careful, considered and thorough approach and explored all reasonable avenues to secure payment.
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“Council has made substantial efforts to engage with impacted landowners through formal debt recovery, written warnings, pre-Section 184 notices, notices placed on affected properties, and through providing opportunities for owners to enter into other payment options.
“Since council began this process, payments have been received from 31 properties clearing the three year arrears amount, while a further 23 property owners have entered into payment arrangements to clear unpaid rates within 18 months.
123 Kruger Rd, Sedan – one of the properties on the original auction list.
“Payment negotiations are also underway relating to a further seven properties.”
The council had recovered $456,000 prior to its announcement it would auction the final nine properties unless their debts were settled before.
“Most of our ratepayers do the right thing, but when a small number continually fail to meet their obligations – despite multiple offers of support – it becomes unfair on everyone else,” Mr Scales said at the time the auction was announced.
– with Jessica Brown and Erin Jones
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