Maribyrnong council is poised to make sweeping changes to its property rating system despite fears the move could drive up already skyrocketing rates bills.
Councillors last week provided in principle approval to move from the net annual value (NAV) rating system to the more common capital improved value (CIV) system.
The decision follows an unprecedented number of formal objections by ratepayers to property revaluations last year – 648 review requests dwarfing the typical objection number of less than 100.
Council received more than 1500 additional inquiries about rating levels.
Star Weekly has reported concerns from residents whose rates bill more than doubled despite the 2.25 per cent rate cap.
A Yarraville pensioner told last week’s council meeting she would prefer to go to jail than pay her rates bill, which grew by more than $1000 last year.
“We are not millionaires, we are normal everyday people,” she said.
The current NAV system reflects the net annual rental value of a property, whereas the CIV system represents the value of a property including the land and improvements.
Maribyrnong is one of only six councils using the NAV system, which reflects the net annual rental value of a property, whereas the CIV system represents the value of a property including the land and improvements.
Maribyrnong mayor Martin Zakharov gave in-principle support for the change, but warned moving to the CIV system may leave residential ratepayers worse off.
“This is the third time I’ve seen this council review this issue and the two previous times it was clearly better for residents to stick with NAV,” he said.
“At the moment, basically, Highpoint shopping centre is subsidising our rates.”
Cr Sarah Carter said the rating system is broken and needed a refresh to get a fairer system.
Cr Mia McGregor said although people were feeling rate shock, the system has “shown itself to be more equitable than other systems”.
“However, certainly there is a very strong mandate here from the community to very seriously consider changing.”
The council will consult with residential, commercial and industrial ratepayers, including online surveys and public forums. A report will then be prepared for the May ordinary council meeting.
