Local farmers feel the sting

“We’re a father-and-son team. We’re trying to raise a family, and we’re paying $700 to $800 a week in rates,” the fifth-generation farmer said.

Mr Lawless urged Moira Shire Council to follow state legislation and introduce a rate differential on farm vacant land to take the pressure off primary producers.

“Unless a rate differential of around 60 per cent is introduced, primary producers will be slugged with paying more than their fair share,” Mr Lawless said.

Farm vacant landowners in Moira Shire currently fork out 100 per cent of the rate in the dollar (0.00211012 cents per $CIV) — the same as residential building land and rural building land classes.

The CIV, or capital improved value, is a property’s assessed market value, incorporating the land and any capital works added to it.

It is set by the Valuer-General Victoria, independently of local government.

Council’s 2024/25 budget shows the estimated value of farm building land rose by over 30 per cent from last year.

The value of farm vacant land, meanwhile, jumped from $697,334 to $993,121 — an increase of over 42 per cent.

The estimates reflect the latest revaluations by the Valuer-General Victoria, which increased the CIV of rural land in Moira Shire by about 30 per cent from last year.

Long term, Mr Lawless said his rates paid to council rose 151 per cent over the past five years. His fire services levy charge, he added, also jumped 374 per cent over the same period.

“If the CIV of rural land continues to increase, the burden of funding Moira Shire and the fire service levy will be unfairly carried by primary producers,” Mr Lawless said.

Mr Lawless and fourth-generation broad-acre farmer Jamie Cummins said they had spoken with other local farmers and approached the Victorian Farmers Federation.

They also met with the council administration last October.

Mr Cummins, who backed Mr Lawless’ call for a 60 per cent differential on farm vacant land, said little of substance changed after the meeting.

“They said they need to recoup their money from somewhere, and this is where they can get it,” Mr Cummins said.

“I realise the council needs to make financial gain, but it’s just too big a slog for farmers to withstand this amount of change and continue to do it.

“As farmers, we want to leave the land in better shape than when we started. It costs you money to do that. Such a large increase in our rates will make this very difficult to achieve.

“If we sell our assets, yes, we can afford it. But our net profit per hectare cannot handle these increases continuously.

“I know people are hurting on this.”

Chair Administrator Graeme Emonson said council was currently reviewing all rate differentials as part of the development of its Rating and Revenue Plan.

“Council is facing some very considerable challenges with the proposed and required rating changes, in addition to questions being raised in relation to the application of the differential rate, particularly in relation to farming properties,” he said.

Dr Emonson said council had not made any decisions over whether there would be changes to the existing differential rating structure at this stage.

“Extensive community consultation is required before any changes would be made, as changes to one type of property will have impacts on all other types of properties,” he said.

“We will be consulting widely with the community in coming months, including engaging with the farming community.”

Dr Emonson also drew attention to the potential impact of the state government’s Emergency Services and Volunteers Fund.

From July 1, the ESVF will replace the Fire Services Property Levy to expand funding across the VicSES, Triple Zero Victoria and the State Control Centre among other agencies.

“While this legislation has not yet been introduced into parliament, the council is endeavouring to understand what its impact will be in the Moira Shire,” Dr Emonson said.

“In addition to this new ESVF levy, compliance with ministerial guidelines on service charges such as household waste collection will also likely see changes to rates.

“Ensuring that revenue from waste charges is limited to the cost of the waste collection service is likely to see re-balancing between rates and service charges.

“All these impacts need to be considered when council considers its future rating structure, including differential rating, to ensure fairness and equity for all properties is upheld.”