Queanbeyan-Palerang Regional Council to auction dozens of properties with outstanding rates

Dozens of property owners in the Queanbeyan region of New South Wales face the risk of having their homes and businesses forcibly sold if they do not pay thousands of dollars in overdue land rates to the local council. The Queanbeyan-Palerang Regional Council is cracking down on land rate arrears and has notified 38 property owners that their properties will be auctioned later this year.

The properties slated for auction include fully owned homes, mortgaged properties, and businesses, with overdue land rates ranging from $6,960.42 to $159,310.67. Council General Manager Rebecca Ryan stated that all of these owners have been in arrears for at least five years. "This is not something any General Manager wants to do," she said. "This is our last resort, and I assure you we have done everything we can to contact these property owners who are in arrears."

Councilors unanimously agreed to take this action in November 2024, hoping to recover just over $969,200 in outstanding payments. The names of the affected owners and the amounts they owe were published in a local newspaper on Monday. “I understand this is upsetting, but of these properties, there are 17 where we have been unable to contact the owners,” Ms. Ryan said. “We have had mail returned, we have done door knocks, and we have hand-delivered letters and notices.” The council is legally required to publish the sale notices. “The purpose of publishing the names is in case someone knows them,” Ms. Ryan said. “They may be overseas, they may have passed away, we don’t know, so it’s crucial that we make every effort to find the owners.”

The auction is scheduled for May 2, 2025. This is the first time properties have been forcibly sold since the Queanbeyan and Palerang councils merged in 2016. Ms. Ryan stated that she hopes they will not have to forcibly evict residents. “We have three months now, so it’s really important if people can contact us about their unpaid rates,” she said. The council stated in its public notice that it is not responsible for the occupants of any residences. "The responsibility for vacant properties rests with the purchaser," the council's notice read.

The Queanbeyan-Palerang Regional Council is facing significant financial difficulties. 2024 projections estimate that the council will face an average deficit of $24 million per year over the next decade. The move to forcibly sell properties is in accordance with the Local Government Act 1993. Meanwhile, land rates have increased substantially by 18% annually since 2023. This increase required special approval from the Independent Pricing and Regulatory Tribunal (IPART) when introduced. “I have over 200 land rate payment plans, or people who are being heavily assisted by council, including interest-free periods of up to two years,” Ms. Ryan said. “Council is very aware that people sometimes lose their jobs or sometimes experience financial hardship.” The council stated that it will recover unpaid land rates from the property sales, and any remaining funds will be returned to the owners or, if the owners cannot be found, placed into a state government trust fund.