QLD property included in bolstered debt-recovery measures

The Queensland government’s improved debt-recovery laws do include the confiscation of homes and property if an “extreme” need arises, Treasury has confirmed.

To date, cars and bikes have been seized as the compliance program ensures “those who owe money to Queensland pay their debts”, the government explained.

Thus far, the government’s Debt Recovery and Compliance Program (DRCP) has delivered almost half a billion dollars in additional revenue, more than 18 months ahead of schedule, it confirmed.

For an initial investment of $74.95 million, the program had been estimated to increase collections and revenue by $488.1 million, between 2020–21 and 2023–24, the state government highlighted. 

While there have been no properties or homes seized yet, such a capability is well within the program’s remit, albeit only under an egregious set of circumstances, a spokesperson explained.

Treasurer and Minister for Trade and Investment Cameron Dick said the program of revenue and State Penalties Enforcement Registry (SPER) debt collection measures had already exceeded its June 2024 forecast of $488.1 million.

“If money is owed to Queensland taxpayers, I think it’s only fair that those debts are paid,” the Treasurer said.

“That’s been the objective of our Debt Recovery and Compliance program since I announced it — getting that money repaid to Queenslanders as quickly and efficiently as possible.

“We’ve already collected $541 million in almost half the time it was expected to take to recover our initial target.

“This is a pleasing result because that money can now be put towards delivering better services for Queenslanders through new hospitals, schools and critical road upgrades,” Treasurer Dick said.

Land, property included in recovery

Mortgage Business asked Queensland Treasury if a citizen’s outstanding major debt could lead to their home or land being confiscated as payment.

A Treasury spokesperson confirmed: “SPER uses a range of enforcement powers, depending on the number, age and size of a person’s debt.”

“This includes suspension of [driver’s] licences, garnishing wages or bank accounts, and seizing and selling vehicles to pay down debts owed to Queensland.

“We typically focus on clamping and seizing vehicles and other property like jet skis, trailers and boats, as this is more efficient and effective in getting debtors to pay.

“For example, SPER seized 54 vehicles over eight days during a recent enforcement operation, but ultimately, only 12 of these vehicles needed to be sold, as many debtors paid their debt,” they explained.

In terms of property selling, they continued: “For high-value debtors, SPER will register ‘a legal interest’ over any properties they may own.” “This is an effective enforcement option, which has meant that SPER has not had to actually sell any properties.”

Campaign spreads across Brisbane

SPER officers are now undertaking an operation across inner-Brisbane suburbs, Treasurer Dick confirmed.

“Through this operation, SPER officers will be targeting Brisbane debtors who continue to break the law, rack up fines and then refuse to pay,” he said.

The Treasurer said the government’s investment in debt recovery had seen SPER achieve record collections of almost $300 million last financial year.

“A new debt management centre at Ipswich has collected more than $276 million in SPER payments since 2020, some of which has been outstanding for years,” he said.

“That’s been supported by an investment in SPER’s field enforcement capabilities, which has seen SPER target high-value debtors through its wheel-clamping operations and seize 350 vehicles in the past two years.

“Our government is backing SPER to collect the money owed to Queenslanders and victims of crime.”

Continuing to collect “every dollar”

The Treasurer said it wasn’t just debt collection yielding results, with new revenue compliance measures “ensuring that everyone is paying their fair share of taxes, royalties and transfer duty”. 

“We’ve given Queensland Revenue Office the tools to improve upfront compliance, cut red tape and introduce more user-friendly, self-service platforms to help businesses meet their obligations,” he said.

“Those who choose not to comply can be the subject of a QRO audit or investigation. 

“Investment in additional detection models for tax and royalty non-compliance and improved data-matching with other agencies identifies those businesses and individuals who are avoiding their responsibilities.

“Queensland Revenue Office will continue to collect every dollar that is owed to the people of Queensland.”

[Related: RBA rings alarm on high debt levels]