Indigo Shire Council unanimously adopted the change in the rating strategy at its July 30 meeting as part of the updated Revenue and Rating Strategy 2024 following extensive community consultation.
Many of the updates and enhancements in the strategy are the direct result of community input, particularly the community working group. Among the improvements are:
- Primary producers on land between eight and 50 hectares can now apply for the Rural 1 differential (75%) compared to the current Rural 2 (90%). This is a significant improvement that will even-up the playing field for smaller farmers.
- Farming properties over 50 ha will automatically receive the Rural 1 differential (75%).
- Implementation of new valuation tools to better differentiate residential properties from primary. production. This improves the equitable distribution of the rates across different property types.
- Support will also be offered to property owners that have dedicated their property to the environment with a Trust for Nature covenant. Properties that are larger than eight ha and used exclusively for Trust for Nature can apply for the Rural 1 differential (75%). In doing this, council is demonstrating that environment, biodiversity and native flora and fauna are a valued and important part of our landscape.
A community working group reviewed a number of different options and rates settings as part of an extensive consultation for the updated strategy. This included looking at all of the differential categories, the property descriptions and percentages, as well as a number of other variables such as the municipal charge.
The result of this intensive work was the conclusion that the majority of council’s rates settings are still considered to be appropriate and should continue. There were, however, a couple of changes to the strategy that the working group felt were worthy of suggesting to council. These changes were made to the draft strategy that had been on exhibition.
Councillor Roberta Horne said the rating strategy matter has caused a great deal of discussion in the community.
“It is really important that we all understand how the rating system works, and that we have the opportunity to have the best advantages for everybody,” Cr Horne said.
Councillor Bernard Gaffney said that just before the meeting, he was told about a ratepayer in the Rural 1 category whose rate rose from $29,000 to $39,000 for the 2023-24 year. Cr Gaffney asked how that would occur.
In response to Cr Gaffney’s question to Director of Planning and Corporate Greg Pinkerton said that council rates are a fairly simple calculation.
“If it were to increase that amount, that would be the result of a corresponding increase in the valuation of that land.
“Those two metrics move the same, so if there was that much movement in the rate there would be slightly more than that in the movements of the valuation of the land,” he said.
Mr Pinkerton said land values are established as part of the Victorian Government rating system and are the main driving force of rates movements. He also said that council complies with Victorian State Government rate caps, but in regard to an individual property valuation, people can put in an objection to the valuer general’s office to verify the value of their land. The information on the process to contact the valuer general’s office is on the back of all council’s rates notices and on council’s website.
Cr Gaffney said most of his neighbours last year appealed to the valuer general’s office to have the value of their property reduced, and the majority, “at least eight out of ten” of them, had received an adjustment to their rates.
Mr Gaffney reinforced that the valuations are done by a private contractor, engaged by the Victorian Government, and not Indigo Shire Council.
Mr Pinkerton encourages ratepayers to carefully check their rates notice and if they have any concerns with the valuations or if anything looks unusual, to get in touch with council.
