LANDHOLDERS on Wyndham’s fringe have been offered a new assistance package to cushion the blow of massive council rate hikes.
But a snap meeting of 200 landholders following Monday’s council meeting denied the offer was a suitable outcome.
The urban growth zone assistance package will allow landholders in Wyndham’s north to have the bulk of their rates increases deferred until their property is developed or sold.
The assistance came in the wake of hundreds of landholders in Tarneit, Truganina and Mount Cottrell facing rates bills averaging 168 per cent higher than last year, due to a spike in land value after they were brought within Melbourne’s growth boundary.
With likely windfall sales up to 20 years away, crowds of landholders have piled pressure on council by swamping four public meetings.
In the move announced on Monday, ratepayers will be eligible for assistance if their rates bills have risen by at least $1000, or if their property valuation has increased more than 75 per cent.
The package allows deferral of the sum by which this year’s rates have exceeded the rates payable in 2011-12, plus the Wyndham-wide average increase of 5.5 per cent. Interest on the deferred amount will be 6.5 per cent.
Wyndham’s corporate services director Steve Lambert said the interest was modelled on how far council would fall short of its required rates income.
“When we don’t get that rate money through the front door, we’ve got to go and source it from somewhere else, otherwise we can’t deliver our service
“If we went to the bank now and said we need that equivalent amount of money, it would cost us 6-6.5 per cent which is why we struck it at that rate,” Mr Lambert said.
Under legislation, the council must charge interest on overdue rates and charges at a penalty interest rate of 10.5 per cent. But it may waive part of any rate or charge interest if a ratepayer is facing financial hardship.
Landholder Neil Anderson slammed the offer to bill the bulk of rates increases at the point of sale.
“The problem with a lot of the land around here is there’s no development going on, it’s all come to a dead stop. The land developers want is 100-acre lots, not the bulk of these properties, which are 40, 20 or 10 acres.”
Fair Rates Committee representative Joe Magro told the crowd the offer, while not the best outcome, was “a move in the right direction”.
He said the council would consider applying no interest to hardship cases.
Cr Glenn Goodfellow said the package did not go far enough. “All you’re doing is adding extra to the outstanding amount.”
