Tasmania Rates Postponement, Deferral and Hardship: What You Need to Know

If you can't pay your council rates in Tasmania, there are options beyond the standard pensioner remission. But one of them — rate postponement — leaves rates unpaid, and Tasmanian law makes rates a charge on the land; many people don't understand what that means until it's too late.

Remission vs Postponement: The Critical Difference

A rates remission (the standard 30% pensioner discount) is a free grant from the state government. You never pay it back. It reduces your bill permanently.

A rate postponement under sections 125–127 of the Local Government Act 1993 is a debt deferral. The council delays collecting your rates, but the unpaid amount remains payable. Rates are a charge on the land under section 119, with priority over mortgages; under section 126, the council may make interest a condition of postponement.

This is not an academic distinction. A postponement that runs for three years under a council policy and carries interest can accumulate thousands of dollars in debt against a family home.

The Three Council Hardship Powers

Under the Local Government Act 1993, councils have discretionary powers:

Section 124 — Instalments: Your council may allow rates to be paid in instalments and sets the due dates.

Sections 125–127 — Rate Postponement: You may apply in writing to the council on hardship grounds (section 125). The council may grant postponement for a specified period if satisfied payment would cause hardship, and may set interest as a condition subject to the statutory limit (section 126). The postponement ceases when you stop owning or occupying the land, and the council may revoke it with 60 days' written notice (section 127).

Section 129 — Rate Remission: By absolute majority vote, a council can remit all or part of your rates, penalties, or interest. This is genuine forgiveness, not a deferral — but it's rare and entirely at the council's discretion.

How Postponement Ends

The statute identifies these events for when a postponement ceases to operate:

1. You stop owning the land, such as when you sell or transfer it
2. You stop occupying the land
3. The specified postponement period ends
4. The council revokes the postponement after giving 60 days' written notice

How to Apply for Hardship Relief

Most councils require:

1. A written application explaining the hardship
2. A financial assessment from an independent, accredited financial counsellor (available free through Anglicare Tasmania or the National Debt Helpline on 1800 007 007)
3. Supporting documents — income statements, bank statements, or medical certificates

Launceston's Interim Rates and Charges Hardship Policy (document 23-Plx-011) allows eligible pensioners to enter postponement agreements for up to three years and provides for one-off waivers of accrued interest and penalties during documented hardship.

Rural councils generally evaluate hardship requests case by case through delegated general manager authority.

What to Do Before Entering a Postponement

Before agreeing to a deferral:

1. Check whether you're already entitled to a remission — many people in hardship are eligible for the standard pensioner remission and simply haven't applied
2. Get free financial counselling — Anglicare Tasmania and the National Debt Helpline (1800 007 007) can assess whether paying by instalments under section 124 would be enough
3. Understand the interest — ask the council what rate applies and get it in writing
4. Consider the estate implications — postponed rates remain payable and are a charge on the land that may pass to family

For worksheets that compare remission, deferral, and hardship options side by side, see our Tasmania Pensioner Rates Remission guide.

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