Rural rate hike: Glenelg Shire seeks 19% more revenue

A leading farming body has slammed plans for a rate hike for landholders in Victoria, insisting it’s a smokescreen for other issues.

Glenelg council has drafted a differential rating proposal that would lift the average ratepayers’ bill – residential, commercial and farm - by 19 per cent from July 1.

The Victorian Farmers Federation has accused the council of using the proposal as a smoke screen to capture $3.4 million in primary producer rebates.

“At its core the (differential) rates proposal is a completely deceptive document,” Strathdownie livestock producer Andrew McEachern said. “It’s based on an assumption that’s incorrect.”

The VFF has drafted a document that accuses the council of drafting a differential strategy that is “an attempt to circumvent the Victorian Government’s Fair Go Rate Cap which for 2022-23 is set at 1.75 per cent”.

Farmers in Glenelg Shire are accusing the council of trying to “circumvent the Victorian Government’s Fair Go Rate Cap”. Picture- Nicole Cleary

An examination of Glenelg Shire Council’s financials shows its budgeted revenue for 2021-22 for the purposes of calculating the Fair Go Rates Cap was $23.29m.

Yet the same document states council’s actual rate revenue was $19.86m, given it applied a 30 per cent farm rebate of $3.43m.

Now, under the differential rating proposal for 2022-23, the council intends to end the rebate to pull in the $3.4m and lift its total revenue to $23.64m – 19 per cent more than its real 2021-22 revenue of $19.8m.

However by declaring its 2021-22 revenue was $23.29m (with the rebate) the council is able to argue lifting its 2022-23 income to $23.64m is just a 1.5 per cent increase, well within the coming year’s 1.75 per cent fair go rates cap.

The Weekly Times sent the following questions to Glenelg Council Mayor Anita Rank, her deputy Scott Martin and chief executive Greg Burgoyne, asking:

HAS council approached the Essential Services Commission to determine if this approach to calculating the base rate on revenue it did not receive is legal?

IS it acceptable to implement a differential rating strategy that lifts all ratepayers’ contributions by 19 per cent, when we compare council’s true rate revenue (post-rebate) for 2021-22 against what is proposed under a 70 per cent differential?

Glenelg Shire corporate services director David Hol said “council have always been compliant with the ESC Fair Go system, and we will continue to meet all regulatory obligations.

“Council stands by it’s calculations presented in the Draft Rate Differential Paper and our Budget Document for 2021/22, and that they are within all regulatory and legislative requirements, including the Fair Go Rates system.

He said council made the commitment to explore a transition from a rebate to a differential rating system based on the overwhelming comments we received, particularly from our primary producers, during the development of our Revenue and Rating Plan last year, which has since been adopted.

Council is seeking community comment on its differential rating proposal by 5pm today.

Submissions can be made HERE.