Differential rates aim to share burden

Farmers will again receive a 10 per cent discount on rates while commercial and business properties will pay a 20 per cent surcharge in the draft rating strategy presented to council.

Council proposes to continue with its differential rating system, making no changes to the differentials between the existing property categories.

Cr Joe Gauci, who has fought in recent years to reduce the surcharge for vacant land holders, said he would wait for community feedback.

The aim of the rating strategy is to ensure the “equitable imposition of rates and charges.”

Under the differential rating system, farm properties will be rated at 10 per cent less than the general residential rate.

Commercial and industrial ratepayers will pay a 20 per cent surcharge.

A 30 per cent surcharge will be imposed on owners of residential development land within Warragul and Drouin precinct structure plans where planning permits have been approved.

Owners of vacant land properties will continue to pay the highest rates, with the differential being an additional 80 per cent more than the general residential rate.

Under the rating strategy, council also will offer a $50 rebate to eligible pensioners.

Of the $53.1 million raised in rates revenue this year, 65 per cent of it will come from residential ratepayers who will contribute $34.7 million to the rates pool.

Farmers will pay a total $8.5 million in rates while commercial and industrial ratepayers combined will pay $5 million.

The capital improved value of all properties across the shire increased 2.9 per cent from $14.8 billion to $15.2 billion.

Properties annually.

There are 21,290 residential properties in the shire that are valued at $10.2 billion, a 3.3 per cent increase on last year.

The 2333 farming properties are valued at $2.8 billion, up 2.1 per cent while 1603 commercial and industrial properties were valued at 1.6 per cent more than last year at $1.2 billion.

The value of the shire’s 1813 vacant lots increased 5.7 per cent to $508 million.

The Valuer-General Victoria valuer for Baw Baw Shire was Gippsland Property Valuations, who inspected 9023 properties out of 27,601 rateable properties. are revalued

The 2020 general valuation inspections focused on properties in and around Drouin.

There are an additional 782 properties on council’s rates list this year, which predominantly saw an increase in residential properties and a decrease in the number of vacant lots.

Cr Peter Kostos said the rating strategy was the nuts and bolts of the budget.

He said Baw Baw Shire’s rate in the dollar was the cheapest in Gippsland.

Cr Kostos said the general residential rate of 0.003399 cents in the dollar was less than what ratepayers paid last year.

Cr Gauci said he had been defeated for the past eight years in his attempts to reduce the surcharge on vacant land rates.

He said vacant landowners will pay 80 per cent more than residential while farmers will pay 10 per cent less under the proposed differential system.

“Do you think that’s fair, well have your say now,” he said.

Rates will be required to be paid over four instalments. It is proposed council does not reintroduce the February lump sum payment option that was abandoned in 2014/15.