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TUESDAY, JUNE 1, 2021
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PropertyGuide GippslandTimes
Farmers hit Closed for by rate rise business, again
The entire state of Victoria has begun its fifth day of a week-long ‘circuit breaker’ lockdown, but the effect on business will last longer, with some local business owners calling for eased restrictions in regional areas. Pictured is Maffra Business and Tourism Association president Marcus Stobie closing up for the lockdown on Thursday evening. More page 3. Photo: Sarah Luke
David Braithwaite
THE Victorian Farmers’ Federation has proposed Wellington Shire Council extend its use of differential rates to spread the rate burden. During a special meeting on Thursday, council formally received 11 written submissions for its draft 2021-22 budget, and heard six verbal submissions. Facing steep increases in its rates bills, the shire’s farming community has asked council to review its rating system. The VFF has proposed council follow Ararat Rural City Council in adopting a dynamic rating strategy which spreads the burden across rating sectors. Council already applies a differential rate for farming properties, which is 20 per cent less than rates applied on other land. Speaking to council on behalf of the VFF’s Gippsland branch, Bundalaguah farmer John Buxton said farmers had been hit with exponential increases in their rate bill in recent years. “I have numerous examples of rate increases, ranging from 30 to 70 per cent in one year,” he said. “These exponential rate increases are driving significant ill feeling and disquiet in the farming community, and I can say for myself that we feel threatened by it. The question you ask yourself is ‘do they want to rate us out of business?’ “When you get a bill that’s up by 30 per cent or 70 per cent, it really sits you back on your heels — it’s not making
the farming community feel like they’re wanted or welcome. “The percentage of the rate burden is being shifted on to the farming community. “The rate burden paid by the farming sector’s increased from 18 to 20 per cent from the year 2019-20 to 20-21. Is that trend going to continue?” Mr Buxton said the rating system was “broken and needs to be prepared”. “There is a solution to the problem. The solution’s become known as the ‘Ararat model’,” he said. “This model has also been adopted by the Mansfield Shire this year. “The advantage of this model is that it allows you to apply the cap to each property sector in the shire, and thereby avoiding the rate shock that happens if the valuation moves substantially for one sector as opposed to the other. “The Ararat Shire managed to get a one per cent reduction in the rating for everybody without impacting on their total revenue.” The VFF’s submission to council claim its total revenue would increase by $1 million using the Ararat model. Beef farmer Sandra Grant said the rates bill for her Boisdale property went up 60 per cent, and her Newry property by 33 per cent. Ms Grant said turnover could never match the increases in land value, which had affected expenditure. “We spend less locally on our groceries, our fuel, our fertilisers, our stock feeds and to make up for the money we find we have to pay for the rates,” she said. Continued page 4
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