The Victorian Farmers Federation has called for a more equitable rate-capped environment after its own analysis revealed rural ratepayers were being ripped off.
The state government introduced its ‘Fair Go’ rates cap system last year, requiring councils to cap rate rises at the consumer price index.
But the system currently allows councils to increase farm rates above the cap while maintaining the overall increase for all ratepayers at CPI levels.
Rate rises were capped at 2.5 per cent last year, but Moorabool council applied to the Essential Services Commission for a 3.5 per cent rise.
A VFF analysis, however, revealed rates increased, on average, by 4.8 per cent for Moorabool’s rural ratepayers.
VFF president David Jochinke said the ‘fair go’ cap needed to be applied to each rating category – residential, commercial/industrial and rural – to make it fairer for farmers paying large sums in rates.
Municipal Association of Victoria interim president Coral Ross said a 2015 MAV analysis found rural properties in Victoria made up 21 per cent of total valuations and contributed 16 per cent towards total rates. She said the MAV did not support rate caps being applied to each property category. “So while some property owners might have paid more than the cap … others would have paid less than the cap.”
Acting Local Government Minister Lisa Neville said councils weren’t restricted from providing discounted rates to different groups of properties.
