PL-2026-003 · MG-04 · policy · adopted by the council

Rates hardship: interest waived while an arrangement is kept

Local Government Act (fictional) s 567; Debt recovery policy 5. Version 1 of 1.

CLEARING

Rule

false → true

interestWaiverOnHardship (flag) · MG04_INTEREST_WAIVER

Evidence

data, research

Impact

not tested

GL-PM-04

Clearance

1/4

next: finance

Position, version 1

clearing · by Drafting agent on 15/08/2026 · New policy.

Interest on overdue rates is waived for the period a hardship arrangement is kept, and reinstated only from the date an arrangement lapses.

Rationale: Interest defeats the arrangement; waiving it while it is kept is cheaper than recovery.

Options considered

Charge interest: Debts grow under arrangement
Waive while kept: Cost tested on live accounts (chosen)

Privacy: No new personal data. · Human rights: Compatible. · Equity: Benefits ratepayers in hardship. · Cost: Foregone interest tested on the live caseload.

Evidence base

Every position cites its sources (GL-PM-03)

DATA MG-04 hardship 2026 Interest accrued on hardship accounts (MG-04 revenue)
Interest keeps accruing on accounts under arrangement, growing the debt the arrangement was meant to clear.
RESEARCH Ombudsman hardship guide Good practice in hardship (Ombudsman)
Interest should stop while a person keeps an arrangement.

Impact on live cases

Not yet tested (GL-PM-04)

Run the impact test.

Clearance

By named people in each function, in order (GL-PM-07)

1. LEGAL · Is the waiver within the council's power under s 567?cleared by M. Lindqvist on 02/09/2026: Within power; s 567(3) allows waiver of interest on hardship grounds.CLEARED
2. FINANCE · Is the foregone interest within the budget?PENDING
NameRoleDecisionComment
3. EQUITY · Who benefits and who does not?PENDING
NameRoleDecisionComment
4. EXECUTIVE · Ready for the council?PENDING
NameRoleDecisionComment

Version history

Immutable; each with its author and change note

Version	Status	Author	Created	Change note	Rule
v1	CLEARING	Drafting agent	15/08/2026	New policy.	interestWaiverOnHardship false → true