AN INQUIRY has stopped short of recommending councils waiving rate payments for people experiencing hardship, even as it recommends changes to the system.
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The 166-page report by a ministerial advisory committee found few councils granted waivers and "only very occasionally".
It did not make any recommendations on expanding waivers despite some property owners being slugged with increases some years even after the state imposed rate capping on councils.
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The City of Greater Bendigo was among councils that told the committee exceptions should be kept to a minimum because the more there were the higher the burden could be on other ratepayers.
It argued that the best approach would be to consider ratepayers' debts to be attached to their properties and that people would recover their money when they sold up.
"A debt can be deferred in cases of financial hardship without being waived," the council said in its submission to the review.
The committee's review has just been made public but the government has been considering its recommendations since March, before councils scrambled to deal with the onslaught of COVID-19.
Since then many have allowed hard-up residents to defer rate payments as part of emergency hardship measures.
They included the Bendigo council, which has used deferrals despite calls from hotels to waive them for small businesses.
The committee did recommend the state government review the criteria for a rates rebate or concession though, especially for properties that provided a public benefit.
It also recommended creating an asset test to stop some groups getting outdated exemptions from rate payments.
That included religious ministers who do not pay rates on their residences even though the properties do not directly benefit the community.
They also include RSL branches that run commercial operations like pokies which compete against other businesses that do pay rates.
"While the traditional functions of the RSL and its sub-branches provide an important public benefit, it is difficult to see how an exemption for the commercial uses of RSL land requiring payment of market prices to access, can be justified on the basis of public benefit," the committee reported.
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The state government accepted 36 of 56 recommendations either partly or in full, especially those that emphasised good fiscal management or helped struggling people.
It also said it would give councils powers for more flexible rates concessions.
However, local government minister Shaun Leane said ruled out major changes to exemptions or the general rates system because of the financial uncertainty it could create as the state recovered from the coronavirus pandemic.
"Our response prioritises reforms that support ratepayers in financial hardship, enhance transparency and consistent decision-making and lay the foundations for greater equity and fairness in the rating system," he said.