Chris Oldfield, Naracoorte Community News

Local ratepayers receiving 2119 rates invoices are in for a shock this financial year– they will be struck by 5,10 and 20 per cent or more rate hikes.

Of the 132 Naracoorte Lucindale Council rate notices with 20 per cent increases, or higher, 78 per cent are residential or commercial property owners.

Residential and commercial ratepayers also represent 80 per cent of the 93 assessments with rate increases of 10 to 20 per cent rate.

Of the 2348 assessments with 5 and 10 per cent rate hikes, 97 per cent are rural landowners – mostly farmers.

However, 2865 assessments – 45.8 percent – will see a decrease in rates.

A further 211 property owners will pay the minimum rate of only $395, while 225 ratepayers will receive rate rebates.

Of the $10.993 million the council will collect in rate revenue, $6.35 million – almost 58 per cent – will be paid by those owning rural land, mainly farmers.

The figures were released at the council’s special budget meeting on June 14, a legislated one hour meeting for the public to attend.

The council chose not to promote the meeting, or its budget, or consultation process with 5000 readers of The News.

No one from the public attended its meeting.

In an earlier media release, the administration claimed there would be an average 2 per cent rate increase.

In amended rate modelling announced by the council at its June 14 public meeting, 813 ratepayers – 13 per cent – will receive a 0 to 2 per cent increase.

A further 399 ratepayers will pay 2 to 5 per cent more than last year.

Chief executive officer Trevor Smart said in his written report that property valuations increased by 19.7 per cent from 2021-22.

“The extent of valuation variations within each rating area provides challenges in delivering a rate model that equitably shares the rate burden across the council area,” he said.

Additionally, remodelling of the rate base was undertaken “in an attempt to more equitably share the rate burden across the council”.

The debate: Grundy calls for equity and fairness.

Mayor Erika Vickery said although “the percentages are quite high, the dollar amounts are not huge, are they?”

Mr Smart said “Not really.”

He added that the greater increases were driven by land sales, changed ownership or a house built on vacant land etc.

Cr Cameron Grundy said what stood out to him was “the lack of equity or fairness”.

He asked what more could be done to massage out the peaks and troughs, suggesting a rate cap to prevent such high increases.

“Secondly, 45 per cent of ratepayers receiving a rate decrease – well, that misses the mark as well,” Cr Grundy said.

He suggested the council could have a condition which set rates so they were not less than last year’s.

Mr Smart said legislation would not allow that to happen.

“You can’t just say we are going to increase everyone’s rate by 2 per cent,” he said.

The CEO explained that under the council’s current system there had to be a property valuation and a rate in the dollar applied.

“There are other choices in the legislation that you could look at using, but you can’t (legally) do it this year,” he said.

Mr Smart suggested some future options to consider.

Cr Grundy: “So what tools have we got in the chest for right now?”

Mr Smart explained the council’s system and a policy that 60 per cent of its rates came from rural ratepayers and 40 per cent from the remainder.

“It’s essentially a property tax,” Mr Smart said.

Cr Damian Ross suggested councillors needed to look at how valuations and rates averaged out over a three-year time frame.

“You might have actually had a decrease in the rates (over the last two years), but you’ve had an increase this year because your property has been valued,” he said.

Cr Grundy: “What I’m concerned about is the poor ratepayer who is going to get a rate notice 20 per cent dearer than last year.”

“Yes, it’s a big increase,” Mr Smart said.

Cr Julie Earl asked if Mr Smart favoured the amended budget model or the original?

He said the amended model was better.

Mrs Vickery said: “The general consensus is that we go with the amended model that has a little bit more variation.”

There was no formal recommendation, motion or vote.

This article appeared in Naracoorte Community News.