Victoria’s top body for councils has criticised the state government for letting property owners think their rates will not rise more than 2.5 per cent.
Hobsons Bay council last week adopted its 2016-17 budget, which includes a $34million capital works spend supported by an average rate rise of 2.5 per cent, but many ratepayers face much higher increases due to a leap in property values under new revaluations.
Municipal Association of Victoria president Bill McArthur said the government’s Fair Go Rates system applied a 2.5 per cent rate rise cap to the total overall rate revenue, but this was not applied evenly to individual ratepayers.
“Rates paid by individuals will depend on their new property valuation relative to other properties within their municipality,” he said.
Local Government Minister Natalie Hutchins said that with an average rate increase of 6 per cent every year for the past decade, it was clear that a new system had been needed.
“Everyone paying rates this year can rest assured their bill won’t be as high as it could have been if we didn’t introduce the Fair Go Rates system,” she said.
As reported by Star Weekly, Hobsons Bay ratepayers whose property values have risen by 14.69 per cent since 2014 will receive a 2.5 per cent rate rise. Those whose property value increased more will receive a higher rate rise and others may receive a discount.
The council’s independent revaluation found property values in the past two years rose 27.11 per cent in Altona North, 22.83 in Altona, 22.32 in Brooklyn, 20.67 in Spotswood, 20.52 in South Kingsville, 19.47 in Seaholme, 14.95 in Williamstown, 8.51 in Laverton, 6.49 in Seabrook and 6.15 in Altona Meadows.
Hobsons Bay mayor Peter Hemphill said the capital works outlay was one of the biggest in recent years despite the 2.5 per cent rate rise cap. Capital works include $11.8million on roads, trails and footpaths; $2.26million on drainage; $9million on open space, carparks and facilities; $2.26million on machinery and equipment and; $8.7million on buildings.
Building maintenance will include an upgrade to the Williamstown Swimming and Life Saving Club. As reported by Star Weekly, the club made an 11th-hour bid for funding, saying its toilets and change rooms had not been upgraded since the council-owned building was constructed in 1935.
