A MASSIVE rates hike for hundreds of landholders in Wyndham’s north has been condemned by the state government as a “grab for cash”.
Planning Minister Matthew Guy accused Wyndham Council of trying to shift blame by suggesting the increases were an unavoidable ramification of extending Melbourne’s growth limits.
His comments come after landholders from Tarneit, Truganina and Mount Cottrell stormed council chambers last week, calling for the reversal of rates bills that were up to seven times higher than last year.
The increases are related to higher revaluations following an extension of the urban growth boundary in 2010. Once land is incorporated within the boundary, councils deem properties to be developable and rate them accordingly. But for Wyndham’s north, the state’s Growth Areas Authority [GAA] warns development could be 25 years away.
Council advocacy director Bill Forrest told the crowd of 400 angry landholders at last week’s meeting the release of plans for new suburbs so far in advance had left them in limbo, increasing rates bills without a forseeable windfall sale.
Mr Guy hit back at the claims and said the responsibility of determining rates lay squarely with the council. “To say otherwise is hiding behind a grab for cash from hard-working Victorians,” he said.
Under the Local Government Act, council is responsible for deciding variable rate levels within different categories of land as part of its budget process.
Wyndham chief executive Kerry Thompson denied the higher rates were a cash grab, saying the council’s rates income remained the same every year.
Mr Forrest said while moving land within the urban growth boundary allowed the council to plan for infrastructure, it was having a negative impact on people’s lives. “We agree that the urban growth boundary is not working given the impact it is having on people’s lives. That’s the bit we’ve got to fix.”
During last week’s public meeting, council officers pledged a September 24 meeting would consider stopping interest on rates payments for landholders appealing their valuations.
They also agreed to review the council’s rating strategy within the next six months.
