Four in ten councils consider a freeze on rates new survey show
The pandemic has forced many councils to shrink their rate increases or forget about them for a year. But despite that, the LGA says councils are looking after their ratepayers better than the state government is.
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Almost four in ten South Australian councils are preparing to freeze council rates this year, a new survey shows.
Councils have also said they are considered stimulus projects and initiatives that are expected to provide at least $273 million in economic activity.
In a sign that the fight over the plan to legislate a form of rate capping is heating up, the SA Local Government Association says councils are looking after its ratepayers better than the state government.
A survey completed by 55 of South Australia’s 68 councils shows the average rate increase for ratepayers in 2020/21 is expected to be 1.3% – with 39% of councils indicating they are considering no rate increase at all this year.
LGA President Sam Telfer said council rate increases are again expected to be well below increases to the State Government’s own fees and charges.
“This is despite the government forcing councils to collect their landscape levy, pay for their new planning system, and hand over millions of dollars every month through the Solid Waste Levy.
“This government is not driving downward pressure on council rates, they are making them more expensive.”
Councils say the 40 per cent increase to the Solid Waste Levy announced in June 2019 will result in councils paying an extra $14.5 million through the Levy, with an expected total bill of $48.5 million for 2020/21.
The State Government have introduced a renewed push for long term rate caps in line with the Liberals’ key pledge before the state election.
Last week Local Government Minister Stephan Knoll said released modelling to The Advertiser which indicates councils reaped $18.7 million more in rates during the 2019-20 financial year than if rises were kept to the inflation level they faced.
Mr Knoll also announced he wants “hip pocket relief for hardworking families and businesses” from a plan which includes limiting councils to 12 councillors and capping chief executive salaries.
In 2019/20 the average residential rate increase was 2.3%, which translated to around $32 per property.
Council budgets for 2021/21 will be handed down later in the year after being given an extension by the state government in response to COVID-19.
In early June a survey by The Messenger has found that, of the 15 councils that had finalised their draft annual business plans, only six have decided to raise rates.
The other nine had frozen rates at 2019/20 levels and one would decrease rates by 10 per cent for hundreds of its residents.
At the time the Adelaide Hills Council took the top spot in terms of rate increases, opting for a 2.95 per cent rise in its draft budget, costing the average ratepayer an extra $59.