MALLEE Family Care has welcomed the Victorian Government’s announcement of a “fairer” system for dealing with rate debt.
Chief executive Teresa Jayet said that in the light of increasing cost-of-living pressures, the proposed legislation, which is expected to receive bipartisan support, will alleviate some stress for many people struggling financially.
Before the pandemic, people who were unable to pay rates faced debt collectors, high penalty interest and, sometimes, costly litigation that compounded the complexities of their situation.
When COVID-19 impacted Victoria, hardship policies were implemented by most councils to provide relief for residents facing difficulties and the government’s new Bill is designed to ensure these policies are not wound back.
“Councils refer people who have rate arrears to our financial counselling service and they require a plan to manage the debt and rates ongoing,” Ms Jayet said.
“What we’ve been seeing is that over the past two years many people have focused on maintaining their mortgage but were unable to meet their rate payments and these debts have now become unmanageable, particularly as other living costs have escalated.
“More and more our financial counsellors are helping people who are in crisis, just trying to keep a roof over their family’s heads and food on the table.”
While the rate reform Bill was a “positive” step in recognising the hardship being encountered in the community, Ms Jayet said there was a great deal more that all tiers of government needed to do.
“The inability to meet living costs such as rates, rent and mortgage causes pressures on mental and physical health and relationships,” she said.
“What we need is an integrated approach that addresses the problems and provides practical supports, measures and services.
“Sadly, for many, life is no longer about thriving, it’s about surviving.”
