Wild variations in your rates

BASS Coast and South Gippsland shire homeowners or farmers expecting to see a slight, 1.75 per cent increase, in their rates’ bill in line with the ‘rate cap’ when notices arrived on their kitchen tables in the past week may have been in for a shock.

It all comes down to how much the value of your property has risen compared to other rate classes for farms, commercial and industrial property.

A house in the sought-after beachfront location of Waikiki Crescent, Smiths Beach where the ‘Capital Improved Value’ has increased by 51.67 per cent in some cases in the past year, has attracted an 11.24 per cent increase in rates.

Whereas the owners of a shop in Wonthaggi’s McBride Avenue, where values have stagnated, have welcomed a reduction of $280 in rates.

For other commercial property in Wonthaggi, rates were virtually the same as last year.

A modest house in Inverloch, valued by the shire’s assessors at $525,000 last year, rising in value to $730,000 this year, an increase of 39% over the 12 months, was virtually on the dividing line, with the total rates’ notice only up by $32, broken down as follows:

• Rates: $1530.66 ($1500.92 last year)

• Garbage charge: $492.08 ($500.92)

• Fires services levy: $155.69 ($144.98)

• Total: $2178.43 ($2146.82).

But, once again, it has been farms with a view, that may have been hardest hit this year.

According to the Bass Coast Shire Council, an example of how rates have moved on the mainland, is an increase in value of 47 per cent, for a rates’ increase of 7.72%.

Now that may not sound like much, but if the value of the farm was $3 million, increasing to $4.4 million, the farm owner would be up for a $500 plus increase in rates.

Farm rates campaigner, Bill Cleeland, the Bass Coast VFF Vice President believes the whole rating system is shot.

“Take the owner of a $4 million house in Toorak, they might be paying $1000 in rates but the owner of a $2 million house in Cowes could be paying closer to $5000. It just doesn’t make sense,” Mr Cleeland said.

“Fortunately, our rates haven’t gone up much this year. But when you’ve got a situation where farm rates are going up on the basis of whether the farm has a view or not, regardless of how productive it is, there’s something seriously wrong with the system.

“Why farmers have to pay $6000, $7000, $10,000 or more in rates because of the speculative value of the property, not its value as a commercial farming enterprise is beyond me.”