Wyndham council has launched 1205 cases of legal action for debts related to the non-payment of rates across two years.
The figures were included in a report by Ombudsman Deborah Glass into how councils respond to ratepayers in financial hardship, which was released last week.
The report showed that between 2018-20, Wyndham topped the state’s 79 municipalities for the number of residents and property owners it took to court to recover municipal rate debts.
Brimbank was second on the list, taking ratepayers to court 1044 times across the two years.
The Ombudsman’s report also included the case study of a Wyndham aged pensioner with mental health issues whom the council “bankrupted” over $30,000 in unpaid rates.
The report said “Chris”, who was aged in his sixties and had trouble communicating in English, was living alone in the house without electricity, gas or a telephone.
A community legal centre contacted the Ombudsman on Chris’s behalf in 2018, after Wyndham council bankrupted him over the debt.
“The legal centre said Chris appeared not to understand the obligation to pay rates and could not read the bankruptcy notice,” the report said.
In response, the council said it had tried to resolve the matter many times during the 13 years that Chris had not paid rates.
According to the council, Chris had agreed to seven different payment plans. He had also been invited to make a hardship application but did not do so.
In the end, the council said that Chris’ bankruptcy administrator had not been able to engage with him.
As the only creditor, the council decided to annul the bankruptcy and pay the administrator’s costs.
A Wyndham council spokesperson said the council provides a range of hardship relief measures including rate deferral plans, payment plans and interest rate waivers.
“During COVID, council elected not to pursue court action for unpaid rates,” the spokesperson said.
“Wyndham City also offered extensions to those who found it tough to pay their rates.”
The spokesperson said that in relation to Chris, “council had on many occasions and over an extended period of time tried to negotiate a settlement, working with both the ratepayer and the nominated welfare agency”.
“Council’s approach and actions in this particular case were carefully reviewed by the Ombudsman,” the spokesperson said.
