FARMERS CRYING OUT FOR RATES RELIEF:
MP says GST could help fund struggling rural shires
This farmer will pay almost $30,000 in council rates this year!
GST revenue could be used to fund rural and remote councils to take the pressure off farmers who are facing rate increases up to 40 per cent, Western Victoria MP Simon Ramsay says.
The member of a parliamentary committee that assessed challenges facing rural and regional councils said farmers were being unfairly targeted to fund budgets.
“There’s been suggestions that maybe a portion of GST be provided directly to local government funding or greater consistency in the Federal Government grants system ( which fund local government),” Mr Ramsay said. “Given the valuation process and the capital improved value methodology we use, farmers invariably are unfairly burdened with rate collection because of their need for productive land.
“We are seeing many instances where, because of the valuation system, farmers are paying 30 to 40 per cent increases to rates. That for them is not sustainable and something has got to give.”
Golden Plains Shire farmer Russell Coad, who owns 900ha between Cressy and Shelford, said his rates bill had increased by about 50 per cent in the past six years. “In rural areas rate bills are increasing but return of services is pretty minimal. I don’t believe its an equitable system,” Mr Coad said.
Mr Coad said he would pay about $7500 in rates in the Colac Otway Shire this year and $12,000 in Golden Plains.
He supported a portion of the GST being used to fund rural councils.
Mr Ramsay said funding models of Golden Plains Shire, Colac Otway Shire and Northern Grampians Shire needed to be changed.
He said some of the state’s regional and local councils would be unviable “in the foreseeable future” — particularly towns facing decreasing population — if the current rate calculation system continued. “Unless there is a change in the way we fund local government many of those councils will be put at risk,” he said.
Mr Ramsay recommended rural and remote councils pool resources to fight against dwindling income.
“(Rural and remote) councils are facing decreasing revenue due to reduction in population and they have less opportunity to raise revenue as against city councils that can have revenue through carparking and other things,” he said.
“And, generally speaking, governments have continued to push more service delivery requirements on to local council. They haven’t provided the appropriate funding.”
Mr Ramsay said an elected State Coalition government would review how rates were calculated.