Maribyrnong residents call for end to rates crisis

Outraged residents in Melbourne’s northwest are calling for an immediate rates overhaul, with one homeowner claiming he would rather go to jail than pay exorbitant fees.

Ratepayers Victoria president Jack Davis said Maribyrnong changing to a CIV system would not solve the problem of skyrocketing rates.

A pensioner has told councillors she would rather “go to jail” than pay her rates, which increased by $1000 last year.

At last week’s meeting Maribyrnong councillors acknowledged there were many people experiencing rates stress.

But a solution to the crisis may be no closer to being solved despite a possible change to how houses are valued.

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Councillors decided at the meeting to begin consultation on changing the rates system from net annual value to capital investment value.

This would mean charges such as environmental and waste would be viewed as separate line items on a rates bill, instead of included in the overall rates charge.

But residents are worried the switch won’t make a difference and want a more equitable solution.

Yarraville resident Lana Schwarcz has owned her two-bedroom house for 15 years and has to pay $3500 a year in rates.

Maribyrnong Mayor Martin Zakharov.

The 45-year-old’s house is in desperate need of renovations but she’s been afraid to fix anything because it could add value to the property and hike up her rates.

“My rates are already unaffordable. But if I don’t renovate then my house will completely rot away,” she said.

Ms Schwarcz said changing systems would make little difference and she called on the council to create more equal rates charges as the “system is broken”.

One pensioner said she had lived in her Yarraville home for more than 60 years and would rather “go to jail” than pay her exorbitant rates, that increased by $1000 last year.

Maribyrnong councillor Sarah Carter said a change to the rate calculation system was not likely to result in lower rates overall.

“If the rates do not go down I will not pay, I don’t care if I go to jail, I will not pay that ridiculous amount,” she said.

“It’s got nothing to do with hardship, it’s got to do with principles. We are not millionaires, we are normal everyday people.”

Her comments were met with applause from the public gallery.

Councillor Sarah Carter said there was “a very clear mandate from the community that they would prefer to look at the CIV rating”.

However, Cr Carter said the change may not reduce rates for everyone, and some people could experience a rise in rates under CIV.

Ratepayer Victoria president Jack Davis said the change would be “a disaster”.

He said the CIV system penalised people for having a more expensive house.

“I know a ratepayer in Glen Waverley who painted his house and then got a notice from council saying you have improved your property so you’re rates have increased,” he said.

Mr Davis said skyrocketing rates had little to do with being on a NAV or CIV system.

“All councils have a massive surplus, which means they have collected more money than they need to perform services. Which means they are overcharging rate payers,” he said.

Mayor Martin Zakharov said he was speaking with state government ministers regarding the issue.

He said 748 residents had contested their rates last year, with about 30 per cent granted a valuation change so far.

The council is carrying out financial modelling to estimate the impact CIV will have on residents. A report will be presented at community forums in April.

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