Axed carbon tax relieves Hobsons Bay rates

Hobsons Bay ratepayers avoided an almost seven per cent rate rise because the carbon tax was repealed.

The average residential rate rise is now 3.8 per cent in the draft 2015-16 council budget.

Mayor Colleen Gates would not comment on how other councils dealt with the carbon tax or if they refunded ratepayers.

“We are unable to comment on what arrangements are in place at other councils with respect to the initial collection of carbon liability or any subsequent return of those collections following the repeal legislation,” she said.

An original residential rate increase of 6.8 per cent was adjusted and offset by reductions in the rubbish and waste charges and a refund of a $650,000 carbon levy collected by the council before the carbon tax was repealed.

According to the budget papers, “a further $750,000 carbon price will also be refunded over the following two-year period”. Also proposed are rate rises of 6.8 per cent on vacant residential land, 3.61 per cent for commercial properties, 4.29 per cent for industrial properties, 6.8 per cent on petrochemical premises and 4.48 per cent on land for cultural and recreational uses.

Cr Gates said the future impact of rates capping was not known yet. Next year, legislation to cap rates at the level of inflation comes into effect – 1.3 per cent for the past year – unless the council can justify extra spending to the Essential Services Commission.

The council’s capital works program is set at $29.4 million, with major projects including a start on the $7.4 million Newport library, youth and senior citizens centre and completion of the $11.8 million restoration of Williamstown town hall. The budget is out for community comment until June 3.