A recent revaluation of properties has been blamed for a big increase in rates for Moira Shire farms.
The increase was identified in a survey by the Victorian Farmers Federation, which found Moira’s increase was the highest for farmland across rural Victoria.
Councils have a rate cap of 2.75 per cent, but this is applied across the whole of the rate system, so differing categories of properties can face higher increases.
The VFF said this exposed the ineffectiveness of the Victorian Government’s local government rate capping policy to protect farmers, with recently announced council budgets demonstrating farmers continued to get the raw end of the rating stick.
Moira Shire Council chief executive Matthew Morgan attributed the rates rise to a property revaluation across the shire.
“Hence, while the actual council rate is decreasing, the property valuations have pushed up the value of the properties,” Mr Morgan said.
“When it comes to the distribution of rates within the community, the largest single driver behind fluctuations in council rates across the state is the valuation of properties, which is undertaken by the Victorian Valuer-General.
“This is because the legislative framework councils work within for generating rates revenue is fundamentally a tax on wealth, determined by the value of property.”
For further detail go to Country News, inside the Courier today.