How Australian Councils can Earn Millions by Moving Towards Pre-Paid Rating Plans
This guide is designed to assist Australian local government councils in transforming their current rating system to pre-paid rating plans. It outlines the benefits of pre-paid plans, such as enhanced cash flow, reduced arrears, and financial relief for ratepayers.
The guide provides a step-by-step approach to implementation, including assessing community financial stress, setting adoption targets, executing technical requirements, and effective communication strategies. It also includes a detailed checklist for monitoring and evaluation, ensuring that councils can track their progress and achieve their financial goals. A case study from the City of Greater Dandenong also demonstrates the successful practical implementation of a pre-paid rating system, providing practical insights and best practices.
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How we put this together
This guide was created using our work with over 25 of Australia's top councils. We noticed that councils who were prioritising monthly, fortnightly and weekly payments were seeing higher interest earnings and more frequent cash flows than councils who didn't offer those options.
Improved Cash Flow and Reduced Arrears
Pre-paid rating plans enhance cash flow stability and decrease the incidence of arrears, benefiting both councils and ratepayers.
Implementation Strategies
Successful implementation relies on robust technical infrastructure and effective communication to ensure ratepayer engagement and understanding.
Council Rate Health Checklist
A comprehensive checklist helps councils track key metrics such as recurring payment support, arrears levels, payment timeliness, and overall cash flow alignment with budget forecasts.
