Drought-ravaged farmers hit with 12% rate hike in East Gippsland
FARMERS in one of Victoria’s hardest drought-hit areas are now being whacked by a major rise in council rates.
FARMERS in one of the state’s hardest drought-hit areas are now being whacked by a major rise in council rates.
East Gippsland Council is slugging its drought-ravaged farmers with a 12.09 per cent rate hike, far more than its other ratepayers.
“They’re going to have a revolution on their hands,” Buchan South farmer Sandra Livingstone said. “We’re already paying about $10,000.”
But while farmers are being hit hard, the council’s draft budget released last Friday, eases the burden of an 8.67 per cent hike on residential rates by cutting their municipal charge by 20 per cent — from $289.71 down to $230.
The cut delivers no benefit to farmers, who do not pay the municipal charge, but helps keep the council’s overall rates and charges revenue within the Victorian Government’s 2.5 per cent Fair Go Rates Cap.
“This year, council proposes to reduce its municipal charge, setting a rate in the dollar that will raise total rates and charges income in accordance with the rate cap of 2.5 per cent,” East Gippsland Mayor Natalie O’Connell said.
“As a significant number of farming properties are exempt from the municipal charge, this shift sees the total amount of rates and charges raised from farming properties increase by a greater percentage than other classes of land.”
The draft budget also proposed limiting the average rate rise for businesses and industry to 5.32 per cent.
Cr O’Connell blamed the 12.09 per cent hike in farm rates on what council claims is a 9.91 per cent surge in East Gippsland farm values.
“All properties were revalued this year by an independent valuer as part of our annual obligations,” Ms O’Connell said. “This process saw the overall percentage increase of valuations of farming properties increase more than residential and commercial properties.”
Yet just last month The Weekly Times reported one of Victoria’s largest property valuation firms, Herron Todd White, found prolonged drought and challenging conditions had seen a sharp decline in Gippsland property values.
HTW valuer Angus Shaw said the Gippsland property market had cooled, with values dropping to $2471/ha last year, from $3147/ha.
Orbost farmer Chris Nixon, who sits on the local drought strategy committee, said his $37,500 rate bill would jump by more than $4000 as a result of a 12 per cent hike.
“The (East Gippsland Council) CEO told me he’s looked at the draft budget and there was no room to move,” Mr Nixon said.
“But that’s exactly what farmers have to do. We have to sack staff, can’t do fencing or put on fertiliser.”
East Gippsland Council is one of the first to release its draft budget, with farmers keen to see what emerges in other parts of the state.
Campaspe Shire Council has also released its draft budget, which lifts the average farm rate 5.42 per cent and residential rate 3.41 per cent.
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