Objection to higher farm rate

A ratepayer has objected to farm land earmarked for future residential purposes being charged higher rates before it is developed.

In a submission on Baw Baw Shire's draft revenue and rating plan, Matthew Fox said land currently used for farming and located within the Warragul or Drouin Precinct Structure Plan had been identified to accommodate the shire's growing population.

Under council's draft rating strategy, a 30 per cent surcharge will be imposed on owners of residential development land within Warragul and Drouin PSPs that is not a principal place of residence.

Of the 10 properties listed under the residential development rating category, council expects to raise $323,000 in rates.

The draft rating and revenue plan states the residential development rate aims to assist management of sustainable growth and encourage residential subdivisions at a sustainable level to ensure sufficient supply.

However, the strategy also proposes to increase the farm rate discount to 20 per cent of the general rate.

Mr Fox said the shire's residential population was growing and the community required land development to accommodate the shire's growing population.

"I do not object to the proposal to set a higher rate for residential development land, and for urban living land.

But a higher rate should only be imposed when the land is in the process of being developed as residential land and the land is also not being used for the purposes of a genuine farming operation.

"This is because farm land has traditionally been rated at a lower level than residential land. This reflects the limited service that are provided to farm land," Mr Fox said.

At a special council meeting to consider submissions on its draft budget and rating plan,

Robert Hall, representing Mr Fox, said farm land identified for future development was being rated at a higher rate than other farmland.

"As soon as it's in a PSP, it is no longer classed as farmland," he said.

Mr Hall said while a planning permit indicated development was on its way, it was only a first step. He said it could be many years before a residential development was completed.

But, he said, because the land was identified for residential land, the rating differential went from 80 per cent of the general rate to having a 30 per cent surcharge.

He said this resulted in land being rated at a much higher level while it was still be used for farming purposes.