LANDOWNERS in Wyndham’s north could face rates rises of up to 10 per cent, with new regulations banning councils from applying differentials to urban growth zone properties.
Under new guidelines announced by Local Government Minister Jeanette Powell last week differential rates can no longer be levied on properties in the urban growth zone that do not have an approved precinct structure plan.
It means that urban growth zone ratepayers — as well as landowners in the municipality’s north included in 2011 — will have their rating classification changed.
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As reported by the Weekly, ratepayers in parts of Tarneit, Truganina and Mount Cottrell have been fighting this year’s rates bills after some landholders faced bill increases of up to 700 per cent.
The council’s chief executive Kerry Thompson said rates for urban growth zone properties were levied at 10 per cent less than residential developed land, meaning ratepayers in the north could face higher bills next financial year. “Rather than providing relief through lower differentials, the adoption of the ministerial guidelines for differential rating may have an adverse financial impact on many ratepayers with properties within the urban growth zone,” she said.
Tarneit landowner Joe Magro called on the council to meet affected ratepayers to explain what impact the rating changes would have.
He said the rezoning and subsequent rate rises were affecting people’s livelihoods, to the extent that some were being forced off their land.
The council fears the new guidelines will undermine its ability to ensure the rates burden is spread equally across the community.
The guidelines also prohibit councils from applying differential rates to liquor licensed and electronic gaming machine venues or fast food outlets.
Ms Thompson criticised the timing of the release of the guidelines, saying the council would need to review its 2013-14 budget which is due to be handed down on May 13.
“The guidelines appear to have been developed to provide rating relief to specific interest groups only, rather than provide councils with guidance on applying the rating tools available within the Local Government Act 1989,” she said.
Ms Powell said the guidelines would restore simplicity, consistency and transparency to local government rates.
Municipal Association of Victoria president Bill McArthur questioned if Ms Powell had the power to make such rules. “This is an assault on the autonomy of councils to make decisions about equitable rates.”
