GLENELG Shire residents have just over two weeks to have their say on how future council rates are calculated and applied to properties, following a motion by shire councillors to explore a transition to a differential rating structure.

Council’s Draft Differential Rating Discussion Paper is now open for public feedback and includes background and details surrounding the current rating structure of the Glenelg Shire and offers suggestions on alternative rating options.

The discussion paper outlines the current rebate scheme, which provides a rebate to those classified as primary producers in the shire and seeks community input on a differential rating structure, which would see the rating burden spread equitably across all user groups.

Glenelg Shire Mayor, Anita Rank said the discussion paper followed the adoption of Council’s Rating and Revenue Plan in 2021, which explained council’s intention to transition to a new model.

“In June 2021, councillors considered all submissions we received from the community regarding our Rating and Revenue Plan,” Cr Rank said.

“We adopted a modified version of this plan which maintained the status quo of a 30 per cent rebate off the primary producer rate for the 2021/22 financial year, but also outlined the intention of council to transition from a rebate to a differential rating method.

“As a result, we have released Draft Differential Rating Discussion Paper which seeks ratepayer input on how the rate burden can be most equitably distributed across households, user groups, primary producers and industries.

“Under the differential rating method, different rates in the dollar will be applied for various land uses (eg, residential, farm, vacant, commercial, industrial) and will help to better reflect the rate contribution required from each different property groups.

“The differential rating structure is council’s preferred option for a number of reasons.

“It provides fairness across each sector, long term financial security and certainty for ratepayers on future rates.

“The transition from the current structure to a differential model is a significant change and as such, we want to hear your feedback.”

The squeaky wheel

THE proposal for switching to a differential system follows massive protest from the shire’s farming community, following last year’s draft budget.

Released in April, 2021, the document drew scathing criticism from the district’s farmers, when it proposed a four per cent reduction per year, for the following four years for the rural rebate in place at that time, which would result in a nett increase of more than 60 per cent for rural landholders, by 2025.

The draft plan gave weighty consideration to the Victorian Government’s Local Government Rating System Review, which recommended council rates be considered under the ‘wealth tax’ principle – a tax on assets, rather than payment for council services utilised by a property owner.

Strathdownie farmer, Andrew McEachern, was one of more than 30 rate-paying farmers to attend a public hearing on the 2021/2022 draft rating plan at Casterton Town Hall and one of 83 submitters to provide feedback on the draft plan.

“It is a condescending attempt to change the way people think about their rates bill, as no longer a fee for service, but instead as a tax,” Mr McEachern said at the meeting.

“The welcome and dramatic increase in the value of my family’s land over the last five years does not, as you seem to believe, immediately translate to an availability of cash, or the magical shrinkage of any debt. 

“And your short-term reaction to the current commodity prices that are so rare, they are the highest the present and possibly the previous generation has seen, is abhorrent, the opposite to good public service and if you were a service station it would be considered price gouging, a prosecutable offence.”

While the call at that time was for a differential rate to be introduced immediately, farmers were satisfied when council did commit to exploring a transition to a differential system, in the future and maintaining the rebate at the same level, for the following 12 months.

“We can’t just switch from a rebate to a differential system within a meeting,” Councillor Karen Stephens said at the time.

“A full rates strategy review is needed and it’s a lengthy process; we have to write a business case, there is proscribed community consultation and I have already advised our primary producers that is what we intend to do.

“We already have over 500 primary producers paying more than half of the total rates bill for the Glenelg Shire, we cannot have that amount increase any further.”

She said while primary producers had seen massive increases in land values across the district – some as high as 40 per cent over a single financial year – council had a responsibility to ensure that rates were kept fair, equitable and affordable.

“We are seeing wild swings in valuations when they are being done every year and when you see that, it does not mean an increase in earnings or the subsequent wealth of the farmer,” she said.

“Council can’t do anything about that, but we can have strong financial resource planning so we can give every resident, every pensioner, every farmer, some certainty that their rates won’t go through the roof and that a young couple with three kids can afford to feed, school and look after the health care needs of the family and still keep the farm going.”

Have your say

SUBMISSIONS on the Draft Differential Rating Discussion Paper are invited and are due by 5pm on Friday, 25 February 2022.

Submitters can also request to speak in person to their submission if required.

Dates and locations will be determined based upon requests and any relevant Covid-19 restrictions in place.

To learn more about the Draft Differential Rate Proposal or to provide feedback, visit the YourSay Glenelg website or collect a hard copy of the document from any of council’s customer service centres.

RATEPAYERS are again invited to provide their feedback on the Glenelg Shire Council’s Draft Differential Rating Discussion Paper, developed following feedback from rural ratepayers, via two gatherings and several written submissions, last year.  More than 30 residents gathered protest the shire’s last draft financial plan, which would have seen a nett 60 per cent increase in rates for rural landholders, over four years.