Coverage related to 2016 property revaluations:
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The City of Greater Bendigo has agreed to abide by the state government’s much-vaunted rate cap, set at 2.5 per cent. But many will see a rate increase of more than 2.5 per cent.
Confused? Angry? You won’t be the only one.
“I'd be very surprised if most people aren't very confused, to be honest,” city organisation support director Kerryn Ellis conceded this week.
Ms Ellis was speaking at the release of the city’s property valuations, which it does every two years and upon which it calculates its rate charges.
The organisation support director said that, while the city will not raise its rates by more than 2.5 per cent in total, some individual rate payers would see a rise in rates of more than 2.5 per cent. For others, it would rise by less than 2. per cent. The pie remains the same, it’s only the portions which have changed.
The confusion, Ms Ellis said, was due to the state government applying a simple slogan to sell a complex policy.
Ms Ellis said Greater Bendigo, like every other council in Victoria, followed state government regulations to calculate its property values and at a time set by the state government.
“The simple message from us is that we've revalued properties across the municipality, like every other council across Victoria, and in line with the requirements of the local government act,” she said. “So if people’s rates have gone up beyond the 2.5 per cent, it’s because the value of their property has been gone up.
“Rates are a very complex thing to apply but a lot of the communication coming from the state government would lead people to look at last year’s rate notice and expect a simple 2.5 per cent increase,” she said.
“But the reality is that it is a lot more complex than that – and the reevaluation only adds to that complexity.”
The Victorian Local Government Association president Sebastian Klein said Bendigonains would not be the only ratepayers left confused by the state’s “populism”.
"This year will be a revaluation year and so, for some, there will be significant changes to their rates notice,” councillor Klein said. “The minister has consistently pushed a line of commentary which was good for headlines but lacking in a clear explanation of how the new policy will work. It's populism run rampant which the state government has exploited – and make no mistake that this policy will put local infrastructure and services at risk in the future."
But the local government minister said her policy had reigned in rampant rates.
State claims rampant rate win
The local government minister has brushed aside criticism from Victorian councils of confusing ratepayers and claimed victory over rampant rises.
Ratepayers were told this week they may be slugged with a rate rise of more than 2.5 per cent this year, due to property revaluations. This is despite popular perception that individual rates would not exceed the new 2.5 per cent rate cap imposed upon councils.
But Local Government Minister Natalie Hutchins said Bendigo ratepayers would still be much better off this year than if her policy had not been implemented.
“We introduced the Fair Go Rates cap to help protect Victorian households from the uncontrollable hikes we've seen in recent years,” the minister said.
“The average rate rise of 2.5 rise will be lower than the 6 per cent increases recorded over the past decade by the City of Greater Bendigo.”
This total revenue burden is distributed among all properties based on their value relative to all other property values within the council.
However, Minister Hutchins said the 2.5 per cent cap applied to the increase in the total revenue a council received from general rates and municipal charges.
“Other items will be included on a rates notices that are not subject to a cap on increases,” she said.
“For example, most councils have a separate waste charge.
“Ratepayers are urged to ask their council if they have any questions about the contents of their rates notice.”
Other items which will be listed on council’s rates notice – but not included in the 2.5 per cent general rate – will be the Fire Services Property Levy, which is imposed by the state government.
The city said its waste charge will be market driven.
The minister is not the only one reminding ratepayers to keep council on its toes.
City rating and valuation services manager Neal Wrigley said every ratepayer had the right to contest their valuation – upon which their rate charge is calculated.
“Within two months of receiving your rate notice, if you think your valuation is incorrect, certainly give us a call,” Mr Wrigley said.
“If we can’t sort it out over the phone, there’s a formal process you can go through if you're not satisfied with the decision.”