Infringement debt write off
Published on 11 July 2019
Late last year the Town discovered an accumulation of outstanding infringement income, relating to Parking, Animal, Fire, Health and other services.
This was due to administrative failures, where unpaid fines were not forwarded to the Department of Treasury Fines Enforcement within the required timeframe.
After a full review of historical infringement debt, the Town investigated options and decided to perform a 90 day trial of internal debt recovery, to address the outstanding debts.
As part of the trial a random selection of individuals were sent a letter of demand to recover outstanding amounts. The aim of the trial was to measure effectiveness of the approach for debt collection and the impact on internal resources.
Based on the outcome of the trial proving it unviable or uneconomical to pursue and in line with the Town’s Debt Collection Policy, Council approved for the bad debt of $767,199.13 be written off.
In addition, the Town’s Debt Collection Policy and practice have been reviewed, updated and endorsed by Council to ensure robust management of outstanding debts including infringements into the future.