Liam McNally
The Victorian Farmers Federation (VFF) has sounded the alarm over Moorabool council’s draft budget which proposes an average farm rate increase of over 16 per cent.
VFF President Emma Germano said the proposed increase was another blow to farmers inflicted by the council “which has been unable to set a flexible rating strategy”.
“Disappointingly Moorabool Shire Council has yet again decided to force a greater rate burden onto the shire’s agricultural sector,” she said.
“The increase represents significant rates shock for farmers and will hurt business growth and productivity which are ultimately needed to help create local jobs, and to help protect farm businesses into the future. It also represents one of the highest farm rate increases across all Victorian rural and regional councils for the year ahead.”
The proposed average farm rate increase is about five per cent higher than it was at the last budget, and more than four times the average increases in the budgets released in 2019 and 2020.
However, Moorabool council chief executive Derek Madden said the average increase is inflated by 31 farm properties that will be rezoned in the next 18 months.
“These properties have experienced significant valuation increases based on sales evidence and demand from developers and other buyers in preparation for future development,” he said.
“Excluding the impact of these properties, the proposed average increase for farm properties is 4.7 per cent.
“Farm properties subject to rezoning will be subject to the new state government Windfall Gains tax from July 1 2023.”
Ms Germano said the VFF had proposed a solution in its submission to the council’s budget consultation process, which closed on Wednesday May 4, to ensure a more “fair and equitable sharing of the rate burden”.
“The VFF has undertaken an analysis of council’s proposed budget and based on our findings we recommend changes that would see farmers, residents and business owners sharing an average 1.5 per cent rate increase. That falls well under the rate cap set at 3.5 per cent for this year,” she explained.
“The farming community cannot be expected to continue to endure the most from continued rate increases that results in less funds available to farmers to invest in their businesses, to create economic activity and to provide local jobs. The VFF implores Moorabool Shire Council to take action to mitigate the proposed rating increase.”
