CASHFLOW problems for landholders in Wyndham’s north are likely to worsen next year when they could become liable for another council rates hike.
As reported by the Weekly, valuation increases averaging 168 per cent for 300 properties in Tarneit, Truganina and Mount Cottrell have triggered massive increases this year. But with windfall sales unlikely for up to 20 years, the hike has plunged many into financial hardship.
After the Growth Areas Authority finalises four precinct structure plans for the area next year, it will fall into a higher-rated zone.
Plans for 11,700 dwellings in Riverdale and 8400 in Tarneit will be completed in November, while plans for 9600 dwellings in Oakbank and 2850 in Tarneit North will be completed next year.
Wyndham Council has set the rating differential for the urban growth zone at 10 per cent less than standard developed land.
Once the precinct structure plans are approved, the land will be deemed “residential development land” and charged a rate 60 per cent higher than standard developed land.
For parcels of land recently revalued at $2 million, rates will almost double from $5572 this year to $9904 next year.
Under the Local Government Act, the council is responsible for deciding variable rate levels within different categories of land as part of its budget process.
The council’s acting chief executive, Bill Forrest, said it was not possible to pre-empt what the differentials would be next year.
He said the council would next week review its hardship policy and a special assistance scheme in a bid to cushion the blow for urban growth zone ratepayers.
Tarneit resident Coralie Porter , whose rates have doubled from about $2000 to $4000, said flood plains meant parts of her land could not be developed.
“They haven’t taken any thought into what the land is like out here. This is just the urban growth zone. That’s it. Whack it, wear it.”
The prospect of a future windfall once developers seek to buy in the area doesn’t change her mind.
“Some people on pensions just won’t be able to pay the rates in the meantime.
“I won’t be able to enjoy any so-called wealth. I’m 66, so in 20 years I could be six feet under.”
