Every Mornington Peninsula household to pay at least $75 for McCrae landslide
The cost of a devastating landslide at McCrae is expected to reach at least $8m and Mornington Peninsula ratepayers will be footing the bill.
South East
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The ongoing fallout from a devastating landslide will cost every Mornington Peninsula household at least $75.
Mornington Peninsula mayor Anthony Marsh said the council had already spent $3m on dealing with the January 14 landslide at McCrae and expected to spend another $5m on the disaster in 2025/26.
He said a rate hike of 3 per cent, approved by the council on Tuesday night, would generate $50 additional revenue per household – just two thirds of the cost of dealing with the landslide.
Residents were forced to evacuate their homes and a council worker was forced to leap for his life when the landslide sent a luxury house tumbling down the cliffs.
While some of those living in the 20 evacuated properties have been allowed to return home, an exclusion zone is still in place around up to eight properties.
The state government has launched a $3.14m inquiry into the landslide but is yet to commit any funds to responding to the event.
“The state govt has contributed zero to the actual response and $3.14m into the autopsy,” Mr Marsh said.
Councillors voted unanimously in favour of increasing rates by the highest amount allowed under the state government’s Fair Go Rates system.
The cap has been set at 3 per cent for 2025/26, the second highest increase since the system was introduced in 2015.
The increase means the shire will receive $5.2m more than the amount generated by rates in 2024/25.
Currently the council’s draft operating income for 2025-2026 is $289m which is an increase of 4 per cent from the 2024-2025 adopted budget.
Deputy Mayor Paul Pingiaro, whose election campaign included a pledge to freeze rates, said without the rate increase the shire would be insolvent within two years.
“We’re not in great financial shape,” he said.
“We have only $20m left in our capital works budget for next year which I would nearly say is a disaster.
“It’s not even painting buildings.”
Mr Marsh said a rates freeze was achievable in the future but there was “a lot of work to do” to find efficiencies.
The councillors also voted for a review of the differential rating system for 2026/27 which sees owners of vacant residential, industrial and commercial land charged 40 per cent more in rates in while farmers are charged 65 per cent less for agricultural land.
Mr Marsh said while he supported genuine agriculture, there needed to be more scrutiny to ensure those receiving the discount were legitimate farmers as opposed to hobby farmers.
“There is illegitimate farming land going on … getting massive subsidies to rates,” he said.
“If you look at a mansion in Flinders that is effectively a hobby farm, compared to a mansion in Portsea, one is paying one third of the rates of the other.
“I think that’s a big problem.”
To qualify for the agricultural rate a property has to be at least 2ha and generate a commercial return on agricultural activities.
Landowners must apply for the discounted rate and the application is assessed by the Valuer General.
Short stay accommodation providers were also put on notice as councillor David Gill called for crackdown on unregistered properties.
“Those party houses are still annoying our neighbours,” he said.
Mr Gill said of the estimated 5000 Mornington Peninsula properties operating as short stay providers about 2000 were not registered.
“We should be investigating that to make sure everybody pays,” he said.