Shire releases draft rating strategy

OWNERS of vacant land in the Surf Coast Shire will pay less rent and all other owners will pay more to compensate under the council’s proposed rating strategy, which is now open for public comment.

The rating strategy details how the council distributes revenue through rates on different property types.

Shire mayor Rose Hodge said vacant land presently had a rate differential twice as high as a residential property, but the new draft rating strategy proposes changing the vacant land rate to the same amount as the residential rate.

“The higher rate was an historic measure aimed at preventing land banking, but there is no evidence to suggest this is currently an issue in the shire, and recent changes to how bushfire overlays are applied means some vacant land cannot readily be developed in any case.”

On average, properties on the Vacant rate will see an average decrease of $1,343, while the General Residential Rate will increase by $48, the Farm rate will increase by $55, the Commercial/ Industrial rate will increase by $85 and properties previously on the Provisional Vacant rate will increase by $26.

The council commissioned an independent review of its rating strategy in line with the Local Government Act, which requires councils to ensure the equitable distribution of rates.

The review also recommended the shire proactively cap its Municipal Charge to 10 per cent of its total rates ahead of proposed changes to the Local Government Act recommending such a cap.

Cr Hodge said the rating strategy did not affect how much overall revenue the council raised from raises.

“Council sets its revenue level based on its budget, which is being exhibited for comment alongside the draft rating strategy.”

The average rates notice will increase by 2.5 percent, the maximum under the state government’s rate capping system.

To view the rating strategy, head to surfcoast.vic.gov.au/yoursay. Submissions close at noon on May 27.