Social housing levy and citizens panel abolished by Mornington Peninsula council
A proposed levy on new builds that would make the Mornington Peninsula the “least business friendly region in the nation” has been ruled on by the local council.
South East
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A contentious propsoal to introduce a new property tax in one of Victoria’s most sought after destinations has been ditched at the first opportunity.
Mornington Peninsula council on Wednesday voted to immediately abolish its affordable housing development contributions strategy and scheme.
The intiative would have added a 3.3 per cent levy on most new residential and commercial builds, potentially adding $35,000 more to the cost of building a house and make units $22,000 more expensive to build.
Fuds raised by the tax would be used to build up to 1000 social housing dwellings in the shire, which has a wait list of at least 4000 people in “high priority need” of affordable accommodation.
The scheme was sent to public consultation, which closed in June, but the results were not publically revealed until last night’s meeting.
Councillor Paul Pingiaro called for the scheme to be abolished saying consultation found most locals were against the idea.
“85 per cent of respondants did not support the levy and a further 4 per cent were unsure,” Mr Pingiaro said.
Councillors also called for reports into scrapping its hugely umpopular trial of cleaning beaches by hand and getting rid of its “costly citizens panel” to be presented for consideration at the first meeting of 2025 on January 28.
The moves followed Tuesday night’s decision to ask staff to prepare a report into the implications of abandoning a plan to roll out visitor paid parking at bayside beaches.
Mr Pingiaro, who led the charge to cancel the proposed property tax said the Business Council of Australia recently declared Victoria as the worst state to do business in due to the “overwhelming burden of red tape and taxes”.
“Introducing a local property tax would cement our region as the last business friendly in the nation,” Mr Pingiaro said.
He described the scheme as “textbook virtue signalling” that could result in higher rents and more people being made homeless.
Councillor Max Patton argued that walking away now from the scheme was “completely premature”.
Mayor Anthony Marsh, councillors Andrea Allen, Stephen Batty, Bruce Ranken, Cameron Williams and Mr Pingiaro voted to scrap the housing tax proposal.
Councillors Patrick Binyon, Michael Stephens, David Gill and Mr Patton wanted to keep the scheme.
Meanwhile, the same group of councillors voting to scrap the property tax also supported a push to end the shire’s citizens panel.
The panel comprised 55 ramdomly selected residents who attended 10 sessions to provide advice and feedback to the council.
Each member was paid $800 in gift vouchers and the total budget for the 2024 panel was $140,000.
The panel was designed to meet the need for “deliberative consultation” as specified in the Local Government Act.
But Cr Batty argued that community input would be provided each of the 11 councillors “listening and following up on community concerns”.
He said as few as 33 panel members attended some of the sessions and the council could not afford to continue the initiative when the local government sector was in a “financial crisis”.
Mr Patton disagreed, saying that as a former member of the panel he could attest to its value.
Not only did it provide a “cost effective” way to canvas community sentiment it had also helped community members develop a greater appreciation and respect for the work done by the shire, he said.
Mr Patton was concerned many of the new councillors had not experienced how the citizen’s panel operated, making it diffcult for them to make an informed decision.
However, Mr Marsh, Mr Batty, Mr Ranken, Mr Williams, Mr Pingiaro and Ms Allen did not agree, voting to wind up the panel.
Mr Stephens, Mr Gill, Mr Patton ad Mr Binyon voted against the motion.