Homeowners in Maribyrnong are paying second highest rates in Melbourne

RATEPAYERS in Maribyrnong are being charged higher rates than those in the leafy green suburbs of the east.

Maribyrnong ratepayers are coughing up the second highest rate bills in Melbourne, averaging $1951.48 in rates.

RATEPAYERS in Maribyrnong are being slugged higher rates than those in the leafy green suburbs of Melbourne’s east.

The latest data by Know Your Council Victoria has revealed that out of 22 metropolitan councils, Maribyrnong ratepayers are coughing up the second highest rate bills in Melbourne, averaging $1951.48 in rates for residential properties in 2016-2017.

A Leader comparison of rates bills for 2017-18 found a $900,000 home in Maribyrnong paid $4000 in rates, while a $1.7 million home in the east’s City of Whitehorse — which is worth almost double — paid just $3000.

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Meanwhile, neighbouring municipalities Hobsons Bay averaged $1770.62, Brimbank $1588.96 and Mooney Valley $1523.11 — about 20 per cent less than Maribyrnong.

West Footscray homeowner Cathy Azzopardi, who has lived in the suburb for 43 years, said she cringed every time she opened her quarterly $800 general rates bill.

“It’s ridiculous, long-term residents are being punished for living in the inner-west. They are going to end up pushing people out of their homes,” she said.

Others told the Leader they were avoiding doing renovations as they could not afford additional cost hikes charged by the council for capital improvements.

The Boroondara Council had the highest average rates bill of $2200, while Frankston ranked the lowest at just $1166.

Rates in Maribyrnong are calculated by multiplying 5 per cent of a property’s net annual value by the rate in the dollar, which is set at 0.06582197 for the 2017-18 financial year.

Councils determine the rate in the dollar according to the amount of revenue they need to raise for the financial year.

But the rating system has been slammed by advocacy group Ratepayers Victoria, which says an independent body is urgently required to iron out discrepancies between councils.

“It would seem that the rates are far too high in Maribyrnong compared to other councils,” spokesman Frank Sullivan said.

The group will push for change in the lead up to the state election in November.

General rates will increase by 2.25 per cent in Maribyrnong in the next financial year, in line with the State Government’s cap.

Maribyrnong corporate services director Celia Haddock said while Maribyrnong’s rate in the dollar may appear higher, the Net Annual Value (NAV) system used was seen as more equitable for our residential ratepayers.

“Other councils use the Capital Improved Value (CIV) to calculate rates with additional charges, such as waste charges, which need to be added to fairly compare rates,” she said.

“Over the coming years council expects, in accordance with State Government legislation, to introduce the CIV rating system. This would result in a consistent rating system across all Victorian Local Government Areas.”

@chanelzagon