Victorian rate cap: Fair go call for farmers from Ratepayers Victoria

Rates could be going up by 3.5 per cent this year, but councils are being urged to examine their own affairs for savings in the first instance.

Victorian regional councils are being urged to look within for savings rather than adopt an increased rate cap of 3.5 per cent that farmers will be contributing the “lion’s share” towards.

Ratepayers Victoria vice-president Dean Hurlston said primary producers were already shouldering their share of the rate burden due to rises in farmland values and were entitled to some fiscal relief.

He cited Hepburn Shire’s initial purchase of Daylesford’s The Rex building for $6.34 million in 2016 and subsequent sale last month for $3.75 million as an example of misuse of ratepayers’ money by a council.

Ratepayers Victoria vice- president Dean Hurlston. Picture: Kiel Egging.

Its original purchase of the building and other matters are still under investigation by the Local Government Inspectorate.

“What we would be very concerned about for farmers is that 3.5 per cent is an extraordinary rise for those who already pay the lion’s share of rates,” Mr Hurlston said.

“Many farmers with bills in the tens of thousands of dollars will be hit hardest by this.

“What we would encourage councils to do is find ways to reduce costs and be more efficient rather than continually gouging producers and farmers who are simply trying to run their land amid tough conditions.”

Corangamite mayor Ruth Gstrein conceded councils would face a difficult decision adopting the 3.5 per cent increase due to cost of living pressures at a time when rural roads remained in poor condition.

“I would like to think there would be additional funds being spent on roads, but we’re a long way from making that decision,” she said.

“It still falls well below inflation and we know from putting out tenders and the like that bitumen alone has gone up 14 per cent.”

Towong mayor Andrew Whitehead, right members of the Man from Snowy River Bush Festival committee Jane Saxon, left, Jenny Boardman.

Towong Shire has one of the smallest ratepayer bases in Victoria and mayor Andrew Whitehead said small rural councils like his “need all the money they can get”.

“We’ve got too many roads and too many potholes to fix,” he said.

“Inflation is going up by more than that so everything else is going up.”

Rating levels are set individually by councils with the 3.5 per cent rate cap being 0.5 per cent below the recommended level from the Essential Services Commission.

The recommended cap for the current financial year was 1.75 per cent.