Our rates up 1.75%, their rates up by 35%

NOTWITHSTANDING the 3000 deaths attributed to COVID-19 in Victoria, you’ve got to credit Premier Daniel Andrews with one key reform, seven years of rate capping.

This year, Minister for Local Government Shaun Leane, has set the rate cap at a maximum 1.75% increase and both South Gippsland and Bass Coast shire have opted for that level of increase.

But spare a thought for our nearest neighbours in New South Wales, at the Bega Valley Shire Council, where they are proposing a whopping increase of 35%.

Is that where we would be without the Andrews’ Government initiative of rate capping in 2016.

Before the ‘Fair Go Rates’ system was introduced residents faced an average rate increase of 6 per cent every year, even more in some rural municipalities with devastating cumulative impact.

The 2021-22 rate cap of 1.5 per cent was the lowest since the system was first introduced.

However, in order to do so it will have to seek approval from the Independent Pricing and Regulatory Tribunal (IPART) and will have to show that it has consulted with its community.

Such an option is also available to South Gippsland and Bass Coast shires, but neither has successfully petitioned to raise rates above the cap.

Bega Valley Mayor Cr Russell Fitzpatrick said the shire ran the risk of becoming unsustainable without out a significant increase in revenue, unable to retain services, or maintain and improve infrastructure.

"We looking at a loss of $9.5m in the general fund, transport costs are 40 per cent higher than they were six months ago and 35 per cent is about where every other industry is. We're expected to take on more services as well," Cr Fitzpatrick said.

It’s a problem, with inflation on the charge, that Gippsland municipalities are also facing.

Is our honeymoon on rates finally over?

Residents of South Gippsland Shire have until May 15 to make comment and residents of Bass Coast have until May 25, 2022 to comment on the draft budget.