Rural ratepayers are hoping for a financial reprieve when rates are capped next year.
Melton South farmers are preparing submissions for a state government inquiry that is calling for community views on rate-capping policy for local councils.
The state government will bring in the cap on rates for the 2016-17 financial year, giving councils time, until July 10, to put their cases to the Essential Services Commission for a bigger-than-CPI rate increase.
Melton South landowner Victor Base pays about $10,000 in rates annually on his 17-hectare property.
Mr Base’s Alfred Road property and surrounding areas, including the Atherstone Estate, have been incorporated into the Melton planning scheme under a Toolern precinct structure plan.
Mr Base believes landowners are getting slugged and says a cap on rates is overdue for rural ratepayers who are paying thousands of dollars a year for little or no council service delivery.
“There’s no sewerage, no gas, no internet. We’re on a dirt road and we have no street lights,” he said. “We were charged to connect power and water. We paid for everything.”
Every two years, the council re-evaluates properties using capital improved value (CIV) as its valuation base and as the formula for calculating rates.
“We pay rates based on the potential value of our land [if it were to sell], but our land isn’t worth anything until we sell it, and no one is buying it,” Mr Base said.
“I’ve lived here for 35 years and nothing has changed so how can they say that we have to pay so much? It doesn’t make sense. We also have to pay land tax for parts of our land, on top of rates, and it’s killing us.”
A cap on rates could have a significant impact on Melton council’s ability to keep up with demand for services, according to mayor Sophie Ramsey.
“It’s a wait-and-see situation at the moment until we know the Essential Services Commission (ESC) findings into what rates will be capped at,” she said. “We’re in a growth corridor and we’ve got a lot of people coming into the area. We need to continue to deliver quality services and infrastructure to support that in a timely manner.”
To make a submission, go to www.parliament.vic.gov.au/epc
