In response to the Victorian Parliament's Inquiry into the Sustainability and Operational Challenges of Victoria’s Rural and Regional Councils, the rating system inquiry recently began to identify changes and to improve fairness and equity.
An independent three-person panel responsible for the review includes former CEO of the Melbourne City Council, Royal Children’s and Royal Women’s hospitals Dr Kathy Alexander, former Essential Services Commission chairperson Dr Ron Ben-David and former Brimbank City Council administrator John Tanner.
Dr Alexander said the panel would be consulting with communities, councils, peak bodies and key stakeholders to have meaningful discussions around how rates and charges were applied.
“Victorian ratepayers should know how their rates are raised and how the costs of council services are allocated across the state," she said.
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According to government statistics, Victoria's 79 councils raised more than $5 billion in rates throughout the 2018-19 financial year.
“Rates have existed as a major revenue source for local councils for many years, helping to fund important works and projects that enrich the community," Dr Alexander said.
“The rating system is complex and the result of many years of additions and different council practices, so one of our roles will be to demystify some of the major parts of the system."
In 2015, the Fair Go rates system was introduced to limit the amount of revenue increases a council can levy through rates.
Capped at 2.5 per cent across the state for the 2019-20 financial year, this was the increase adopted by Greater Shepparton City Council.
Council's acting chief executive officer Chris Teitzel said the rating system review was a positive initiative.
"There isn't anything fundamentally wrong with the system but a periodic review of how the taxation system works is a good thing," he said.
Mr Teitzel said rates form a significant part of the council's income stream and.
He said the council would most likely continue to implement the Fair Go rates system.
"It can be difficult to implement special charges so we don't foresee us doing that in the immediate future."
Dr Alexander and Mr Teitzel both agreed the rating system could be complex and complicated for both councils and ratepayers alike.
“Our focus will be on identifying areas where the current rating system can be improved, and what changes can be made to how these charges are imposed on ratepayers moving forward," Dr Alexander said.
With the review now accepting public feedback and submissions, Mr Teitzel encouraged the community to share its opinions.
"It's a great opportunity for the public to have their say on rates, charges and local government," he said.
The review will conclude in March 2020, and the Fair Go rate cap will be separately reviewed in 2021.
To provide feedback visit engage.vic.gov.au/rating-review
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