Record rate hikes: Glenelg and Campaspe shires smash farmers

Eleven of Victoria’s rural and regional councils have released their 2022-23 draft budgets, with some including record rate increases. See the winners and losers.

Glenelg Shire intends to crank up the rate revenue it collects from farmers by 22 per cent.

Glenelg and Campaspe shire councils have released draft budgets that will smash the farm sector with rate hikes of more than 20 per cent from July 1, despite Victoria’s Fair Go Rates cap setting the maximum increase to 1.75 per cent.

The rate hike means Glenelg shire will lift the amount it collects from farmers from $8 million this financial year to $9.785m in 2022-23, a rate hike of 22 per cent, as part of its new differential rating scheme its council has adopted, arguing it is “fair and equitable”.

It means the shires’ 900-odd farmers, who each hold an average of about three rate assessments, will see their bills surge from about $8800 to $10,870 (based on a total of 2781 farm assessments).

In the state’s north, the Campaspe Shire 2022-23 draft budget proposes cranking up the amount it collects from farmers from $8.26m this year to $9.94m, a 20.36 per cent rate hike.

The two councils rate hikes sit in stark contrast to the majority of Victoria’s 11 rural and regional councils, who have released draft 2022-23 budgets that either cut the rate revenue they collect from farmers or are keeping it close to the cap.

The Victorian Farmers Federation has accused Glenelg Shire of trying to “circumvent” the Fair Go Rates cap by counting a $3.429m rebate it was offering farmers this financial year as foregone revenue in its calculations of the percentage increase in revenue for 2022-23.

The agenda from this Tuesday’s council meeting shows that while it will lift its farm rate revenue from $8m this financial year to $9.785m in 2022-23, a rate hike of 22 per cent, its reforms are “fair and equitable”.

The council has argued the $3.429m farm rate rebate it offered in 2021-22 was effectively forgone revenue, and thus it is reducing farm rate revenue from $11.43m ($8m plus $33.49m) this financial year to $9.785m in 2022-23, a 14 per cent cut.

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

“Council stands by its 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.”

The Glenelg Council’s budget also show how land values in the shire have surged by 37.39 per cent for farm land and even 33.37 per cent for residential properties.