Bin your trash tax, minister tells Yarra council

THE City of Yarra council has been told to review its controversial bin tax amid concerns it is using the new levy to dodge state government rate caps.

The City of Yarra council has been told to review its controversial bin tax.

THE City of Yarra council has been told to review its controversial bin tax amid concerns it is using the new levy to dodge state government rate caps.

YARRA COUNCILLOR STEPHEN JOLLY CLAIMS COMPLAINT OVER TWEET LINKED TO BIN TAX CRITICISM

CONTROVERSIAL CITY OF YARRA BIN TAX UNDER REVIEW

Local Government Minister Natalie Hutchins told Yarra mayor Amanda Stone that ­although the bin tax was not covered by rate-capping laws, the intention was for no “unexplained or unusual increases in these charges”.

The Greens-dominated council proposed a new annual levy of $247 for a household to have an average-sized bin emptied every week. The charge, to start in the next ­financial year, would be on top of the regular rates bill.

Local Government Minister Natalie Hutchins. Picture: Sarah Matray

Councils watchdog the Essential Services Commission, would continue to monitor the charges, Ms Hutchins said.

“I request that council review the proposed waste service charge in its draft budget 2017-18, and take appropriate action to ensure that the council complies with the Act and the commission guidelines,” she wrote to the council.

The levy aims to raise $8.5 million to help with the increased cost of removing rubbish. But Ms Hutchins noted that it would not be offset by a rates reduction.

Cr Stone said the council would review the charge, after community consultation, on June 6.

City of Yarra mayor Amanda Stone.

“The minister in her correspondence hasn’t ruled out a proposed waste service charge for Yarra, which makes sense because 73 other Victorian councils already have a waste service charge in some form,” Cr Stone said.

She added that Yarra had sought legal advice to check that the proposal complied with the Act, but said there was no precise definition for the commission’s reference to the “spirit of the law”.

Fellow councillor Stephen Jolly is opposing the bin tax, declaring it unfair when the council would receive an extra $11 million in rates revenue next year because of the inner-city apartments boom.

The council is forecasting a budget surplus of $15.8 million, which Cr Stone has said would be used to retain services and retire debt.