Mildura Rural City Council to increase rates for farms and business

Farmers will pay hundreds more in rates each year after council passed a controversial initiative to relieve the burden on homeowners.

Mildura farmers will feel the pinch after council decided to increase their rates by more than 13 per cent, in a move that has been described as “a slap in the face” to food producers.

The decision, approved by Mildura Rural Council on Thursday night, aims to restore equity among ratepayers and shift the burden off homeowners next financial year.

While council stated the average increase for farmers would be $312 per year, councillor Ian Arney and the Victorian Farmers Federation argued the amount could be more than four times that.

The VFF said that with most farmers owning multiple properties, their rates could increase by $1800 each year.

Mildura farmers will experience a steep rate rise next financial year

Cr Arney said the average presented by the council was not representative of the reality for most farmers.

“The average dry land farm rate is to increase by $463 per property and generally speaking one property on its own is not enough … you need five or more,” he said. “So $463 per property by five, do the maths.”

VFF president Emma Germano slammed the decision.

“[The] decision to jack up rates for farmers is a slap in the face for the people producing food for our state,” she said.

“Rates are a fixed cost for farm businesses, and unfair increases just makes it harder for farmers to get a fair return for their produce.”

She added that the rate cap was “not working” and was “leading to worse outcomes for farmers”.

“The VFF has repeatedly said the cap is flawed, given it is determined by dividing rate revenue by the total number of rateable properties.

“That means councils can ratchet up farm rates beyond the cap, while keeping the overall “average” increase for all ratepayers at or below the cap each year,” Ms Germano said.

“Irrespective of the cap however, councils have it in their power to set fair rates for farmers by using differential rates and the farming communities’ expectations on this is clear.”

The decision divided councillors, with Cr Arney questioning why council sought community feedback.

“62 per cent of respondents were supportive of no change, and I’m just wondering [if] we only consider the results when it suits?” he asked.

Cr Jodi Reynolds said the majority of ‘no’ votes came from farmers in an “orchestrated attempt” to skew the results so they couldn’t influence council’s decision for the whole community.

She said the burden of rates was currently falling “disproportionately” on homeowners and this needed to shift.

“The evidence tells me a change in the differential rate will restore equity without disproportionately affecting other ratepayers,” she said.

Mildura businesses, meanwhile, will be slugged with a 10 per cent rate increase.

Mildura City Heart manager Danielle Hobbs said the rate disparity between businesses in Melbourne and Mildura was “concerning”.

Cr Glenn Milne described the rates system as “stretch[ing] people until they are pulled apart”.

“Our rating system is based on the so-called Fair Go system – a government catchphrase,” he said.

“For Mildura it’s a bit closer to the rack rating system, where it just stretches people until there are pulled apart.”

He said the community, which paid some of the highest rates in the state, was being asked to turn on each other and the state and federal governments needed to help.

Despite the debate councillors voted to adopt the new rates split, with four councillors voting against it and five voting for it.