Call to abandon “unfair” burden on vacant land

Surcharges applied to commercial/industrial and vacant land properties in Baw Baw Shire should be removed, according to a group representing ratepayers.

Two submissions, from the Baw Baw Ratepayers and Citizens Association and former councillor Terry Williamson, have criticised the rate burden imposed on vacant land and commercial/industrial property owners.

Council’s draft rating strategy and budget proposes an 80 per cent surcharge on vacant land properties and a 20 per cent surcharge on commercial rates.

At a special council meeting last week, BBSRCA secretary Kerry Elliott urged council to waive the surcharges on vacant, commercial and industrial properties; and, increase the proposed 10 per cent farm rate discount to a 20 per cent discount.

But, councillors asked Ms Elliott how the association proposed council would raise the same rates revenue if it reduced the rates income from two rating categories.

Councillors explained they had set their budget to raise almost $60 million revenue and asked Ms Elliott if general ratepayers should pay more to compensate for the loss of revenue from vacant land and commercial/industrial ratepayers.

Ms Elliott said it was the association’s intent that the total revenue base for rates would be decreased by about $5 million. “We don’t believe the bulk of the community should pay higher rates.”

Ms Elliott said the 80 per cent surcharge was “extremely unfair” and difficult to manage for first home buyers

She said the 80 per cent surcharge had not achieved its purpose of encouraging development and discouraging land-banking.

“The draft budget shows that the number of vacant land properties will increase by 80. This surcharge is not working and must be discontinued,” she said.

Ms Elliott said the association also strongly believed council should waive the 20 per cent surcharge on commercial/industrial properties.

She said trading opportunities for local businesses had been negatively impacted by parking issues, streetscape works, on-line shopping and the attraction of larger shopping centres.

Advocating for farmers, Ms Elliott said the increased discount for farmers was essential and recognised the ongoing challenges facing farmers.

Mr Williamson said it was common in Warragul and Drouin for a vacant block to be worth $200,000. He said the general rates on that block would be $771.60 per year but the 80 per cent surcharge meant owners were paying $1388.

“A few years ago, buying a block of land was a good incentive, especially for young people.

“The increased rate for vacant land begins immediately when the block is created and yet it takes at least one year to develop.

Mr Williamson said there should be at least three to four years grace before owners have to pay a higher rate.

The surcharges have been the focus of debate amongst councillors several times in recent years and this year was no exception when the draft rating strategy was presented in April.

Two councillors indicated their strong opposition to the higher rates being forced on owners of vacant land.

Two years ago council increased the vacant land rate surcharge a further 20 per cent to 1.8 times the general rate in a move designed to encourage development.

Crs Joe Gauci and Danny Goss opposed the surcharge on vacant land properties.

“This will slug the people trying to buy blocks of land which is mostly our young people,” Cr Goss said.

Cr Goss said the vacant land surcharge was too high. “We provide zero services to them. I think it’s unfair.”

Council accepted the draft budget and rating strategy in April. Officers will assess submissions and provide a final report for council adoption later this month.