The Victorian Farmers Federation has called for a more equitable rate-capping regime, claiming its own analysis reveals rural ratepayers are 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 for Wyndham residents, but a farmers federation analysis has revealed rates increased, on average, by more than 17 per cent for Wyndham’s rural ratepayers. The increase was the highest in the state.
Rural land in Wyndham also experienced the greatest valuation increase in the state at 27.90 per cent.
Werribee South farmers have been vocal in their concerns about the viability of farming in the region, citing challenges including poor water quality and rising rates and other costs.
Federation president David Jochinke said farmers were frustrated their rates were increasing, yet they were not getting any additional services.
“Rates, unlike any other cost, are fixed,” he said. “Farmers can’t manage it or find any other organisation – we’re beholden to local government to manage the area but also to be fair among its rate-paying base.”
If rates continued to rise, he said, there was not a bright future for the next generation entering agriculture.
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 of total rates.
Acting Local Government Minister Lisa Neville said councils weren’t restricted from providing discounted rates to different groups of properties.
– With Sumeyya Ilanbey
