A state coalition MP has warned ratepayers will be hit with substantial rate rises next financial year as councils seek to cash in before rates caps are introduced by the Labor government.
Shadow attorney-general John Pesutto said he learned on Thursday that Local Government Minister Natalie Hutchins had written to councils warning them of the folly of steeply increasing rates in the 2015-16 financial year.
“The effect of Minister Hutchins’ letter is almost to invite councils to significantly hit ratepayers with substantial rises in rates,” he said.
“What else will councils do now than to move quickly in the ’15-’16 year to ratchet up rates before Labor’s rates cap is introduced?
“This is a ham-fisted approach to the way councils need to conduct their operations and Labor should review its proposal urgently.”
Maribyrnong chief executive Stephen Wall was coy when asked if Mr Pesutto was correct in asserting his council would ratchet up rates next year.
“Council is mindful of the impact rate rises have on residents when working out what increases are needed each year to maintain and improve services,” Mr Wall said. “Council is required to engage with the community in regards to proposed rate increases prior to adopting the budget each year.”
But Hobsons Bay mayor Colleen Gates rejected the claim, saying next year’s rate rise was expected to modest.
“Council has long-term rating strategies and plans in place that prioritise our budget investments up to 10 years in advance,” she said. “These plan for modest rate increases and I would expect that council’s rates will be what was planned for the 2015-16 year regardless of the capping policy.”
