Unpaid council rates on the Mornington Peninsula Shire Council could see dozens of properties forcibly sold, as the Mornington Peninsula Shire Council attempts to recover over $14.5 million in arrears, including nearly $6 million overdue for the current financial year.
The move has drawn criticism from residents, with follow up protests expected at the next council meeting over nt council cuts.
Confidential Vote May Approve Forced Property Sales
The council will meet to decide on the issue in a closed-door session, listed as a confidential item under Section 66(2)(a) of the Local Government Act 2020 (Vic). The meeting will not be open to the public due to the inclusion of personal hardship information.
Under council policy updated in March 2025, any property with more than $5,000 in unpaid rates over three years may be sold to recover the debt — even if no mortgage is owing — as long as the property is not a primary residence and the owner has not entered into a hardship agreement or payment plan.
The council’s legal authority to sell land is derived from Section 181 of the Local Government Act 1989, which permits Victorian councils to initiate forced sales of properties under strict conditions.
Who Is Most at Risk?
Despite safeguards, community groups warn that the council’s policy could result in debt-free homeowners losing their homes — particularly elderly residents, pensioners, and individuals in hardship who do not respond to official correspondence.
At-risk residents may include:
- Elderly people living alone without support
- People with dementia, mental illness, or disability
- Non-English speakers or those with limited literacy
- Residents unaware of council hardship options
- People whose properties are misclassified or with outdated records
Advocates argue the $5,000 threshold is too low, especially considering the potential outcome is the forced sale of a person’s home.
“Many of these people don’t even know they’re at risk. They may be mortgage-free but still vulnerable if they miss paperwork,” said one local housing support worker.
A 2021 Victorian Ombudsman report confirmed that councils across the state initiated the sale or transfer of 28 properties in a single year due to unpaid rates — often involving people in hardship.
Council Defends Policy
Mayor Anthony Marsh said the policy is designed to ensure fairness and accountability.
“The vast majority who do the right thing and pay their rates shouldn’t be expected to carry the burden for those who won’t contribute,” he said in March.
The Herald Sun reported that 59% of readers polled opposed councils having the power to sell properties over unpaid rates, while 41% supported the move.
Protests Brewing Over Budget Cuts
The council’s upcoming meeting is expected to draw further protests from community organisations, following widespread cuts to environmental programs, youth services, and aged care funding.
Groups plan to gather outside council chambers, calling for greater transparency and community consultation, especially when decisions impact vulnerable residents.
Support for Ratepayers
The council advises that residents with unpaid rates should contact Maddocks Recoveries on (03) 9258 3847 to discuss payment options, enter a hardship plan, or avoid legal escalation.
What You Can Do
If you or someone you know is struggling with rates debt:
- Contact Mornington Peninsula Shire’s Rates Team via mornpen.vic.gov.au
- Speak with a financial counsellor or legal aid service
- Ensure your property is correctly listed as your principal place of residence
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