PREMIUM
News

Rate slug for Moira Shire farmers

author avatar
Moira farmers will face a huge jump in rates this year. Photo by Geoff Adams

Moira Shire farmers face a council rate hike of an average 25 per cent in this year’s budget.

The increase was uncovered in a survey by the VFF 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 says this exposes the ineffectiveness of the Victorian Government’s local government rate capping policy to protect farmers, with recently announced council budgets demonstrating farmers continue to get the raw end of the rating stick.

VFF president Emma Germano said rate capping had failed to stop some regional councils forcing rate increases onto farms.

“Councils are failing to use their differential rating power to equalise rate increases across different classes of land,” Ms Germano said.

“The burden of funding local government is shifting more and more onto the agricultural sector.

“These tax hikes show that Victoria’s rate capping system is broken."

The VFF says Moira’s rates generated by farms will increase from $7,219,000 to $10,014,000.

Moira adopted its new budget on June 26.

Moira chief executive officer Matthew Morgan is attributing the rate take from farmers 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.

“We understand that there has been change in property valuations across the district, representing a change in equity and wealth, which naturally changes the distribution of taxation and will impact on each ratepayer differently.

“In this instance it appears as though there has been an increase in the value of farm properties broadly across the district.”

According to the VFF analysis, the average farm assessment change in the City of Greater Shepparton is 4.5 per cent, for Campaspe Shire it is 7.9 per cent and in Strathbogie it is 2.5 per cent.

“It is completely unfair to have rate increases exorbitantly high for one group of ratepayers, but have no increase or even a reduction in rates for others,” Ms Germano said.

“Unfair rate increases take money away from farmers investing in their businesses, growing more food and fibre and providing local employment opportunities.

“Ultimately this either drives up the cost of food or puts farmers out of business or both.

“The annual cap determined by the Essential Service Commission should be applied to residential, farming, commercial, industrial and any other differential land category.

“Increasing farmland values have no bearing on famers’ ability to pay exorbitant rates bills.”

Mr Morgan said Moira Shire Council recently provided a submission to the Inquiry into Local Government Funding and Sustainability and supports the call for a review of the funding model for local government.

“Particularly we seek consideration of increased and flexible funding streams from the state and federal governments, to reduce the impact of providing local government services and infrastructure on our community and ratepayers,” he said.

“There is a growing funding gap between rate revenue and the cost of service delivery and growing expectations from community in services and infrastructure are provided.

“If individual property owners are concerned that their property valuation from the Victorian Valuer-General is not accurate, we encourage them to challenge the via the Valuer-General's office once they receive their council rates notice.”