Homeowners at Risk as Council Cracks Down on $15M in Unpaid Rates

ROSEBUD – Struggling homeowners on the Mornington Peninsula could be at risk of losing their homes as the Mornington Peninsula Shire Council pushes ahead with plans to recover $15 million in unpaid rates.

RPP FM reports that a controversial policy update set to be discussed at the council meeting on Tuesday could see homes sold off if rates have gone unpaid for more than three years and debts exceed $5,000. The move has alarmed local residents, with many fearing it could force families, pensioners, and struggling households into financial ruin.

How Could This Happen?

According to the Herald Sun, if the policy is enforced, the council will first issue warnings to those behind on their rates. If homeowners don’t pay up or enter into a payment plan, the council can then seek a Supreme Court Order to sell their property.

Mayor Anthony Marsh, speaking to the Herald Sun, defended the approach, saying that people who do pay their rates shouldn’t have to carry the financial burden for those who don’t.

“It’s about fairness,”

Marsh said.

“Most residents pay their rates on time, and we can’t let unpaid debts affect community services and infrastructure.”

But many locals aren’t buying it. They say the plan gives the council too much power and could devastate people who are already struggling.

Ratepayer Advocates Condemn Policy

Ratepayer advocacy groups are furious, calling the policy heavy-handed and warning that it could hit people already doing it tough including pensioners, single parents, and those struggling with rising mortgage rates and cost-of-living pressures.

“The council is acting like a bank, not a local government,”

Said one concerned resident in a Facebook comment.

“People aren’t avoiding their rates because they want to—they’re struggling to keep their heads above water.”

Many say the $5,000 threshold is far too low, arguing that falling behind on rates shouldn’t mean losing your home.

“We all know how quickly bills add up,”

Said another.

“Someone loses their job, has a medical emergency, or gets hit with an unexpected expense, and suddenly they’re on the council’s hit list.

The Mornington Peninsula Shire reports that it is owed nearly $15 million in unpaid rates, a growing issue for councils across Victoria. With local governments under financial pressure, some councils are taking a tougher stance—but many residents say targeting homeowners isn’t the answer.

The Mornington Peninsula Shire Council meeting on Tuesday will discuss how and when the policy could be enforced, as well as what protections—if any—will be in place for those facing genuine hardship.

With forced home sales now a real possibility, it is unlikely that the policy will be popular amongst majority of the community.

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