TWO local councils are facing pressure from district farmers and the Victorian Farmers Federation (VFF) over excessive farm rate increases.
The VFF has named both Mitchell and Macedon Ranges Shires as among the top five local government areas with the highest farmland rates increase in Victoria.
The VFF says evidence of some Victorian local government councils slugging huge rate rises on farmers shows the Victorian Government’s local government rate capping policy isn’t working.
Macedon Ranges Shire is named as imposing the second highest rate increase with a 14.78 per cent change in its average farm rates assessment. Mitchell Shire Council comes in fourth with an 8.62 per cent increase.
By comparison the average residential rate increase was 2.49 per cent for Macedon Ranges and 1.60 per cent for Mitchell.
VFF President Brett Hosking said farmers continue to get the raw deal with rate capping failing to deter unfair rate hikes in some regions.
Macedon Ranges Mayor, Cr Dom Bonanno disagreed saying that the quoted increase was based on forecast figures from Council’s draft budget in relation to expected agricultural land revenue and assessments.
He said that the increase will be closer to six per cent, describing this increase as “moderate.”
“The last thing we want to do is adversely impact our farmers at this challenging time, particularly in the context of the Emergency Services and Volunteers Fund Levy and recent dry conditions,” Cr Bonanno said.
Tooborac farmer, Lyndon Arnell said that Mitchell Shire Council must justify the increases in what he calls a cost impost on farmers.
“We’re being hit with higher rates year after year, and it’s getting harder to justify staying on the land. An 8.6 per cent jump is massive compared to what residential ratepayers are seeing. It feels like farmers are being used to prop up council budgets. The rate cap clearly isn’t protecting us, and something’s got to change, or we’ll see more farms on the market and fewer young people willing to take on the family farm,” Mr Arnell said.
Bill Chisholm, Chairman of the local Protect Our Farms organisation agreed saying that the increases are pushing farmers to the limit.
“The farming community is facing extensive rate increases while there is only a slight increase for others in the same area, there can be no doubt the system is flawed. We need to look at the level of bureaucracy and the maintenance programs for the gravel road network. The environmental rebate is a past initiative that needs to be reinstated along with a more equitable rating system,” Mr Chisholm said.
One Monegeetta farmer, who asked not to be named, said he was incredibly frustrated with the increase saying that councils are increasing farm rates above the state’s 2.75 per cent rate cap, while residential rates remain at or below the cap.
“Agreed the fire services levy increases have been paused, but in reality, it is still there. This rates slug is pushing us to the limit,” he said.
Mitchell Shire Council was contacted for comment.
