In statistics released by the VFF, Moira Shire is the top LGA for rate increases for farmers in 2024/25 with the average farm rate increase sitting at 25.84%.
The next highest to Moira is Mildura with 15.91% while Central Goldfields round out the top 10 with 7.29%.
VFF President Emma Germano said the burden of funding local government is shifting more and more onto the agricultural sector.
“These tax hikes show that Victoria’s rate capping system is broken,” Ms Germano said.
“It is completely unfair to have rate increases exorbitantly high for one group of ratepayers, but have no increase or even a reduction in rates for others.”
VFF analysis of all council budgets for the year 2024/2025 shows 19 regional councils increasing farm rates above the state government rate cap of 2.75%, whilst residential rate increases remain at or below the cap.
“Unfair rate increases take money away from farmers investing in their businesses, growing more food and fibre and providing local employment opportunities,” Ms Germano said.
“Ultimately this either drives up the cost of food or puts farmers out of business or both.”
The VFF’s recent submission to the Victorian Parliament Inquiry into Local Government funding and services recommended the government require councils to apply the rate cap to each class of land.
“The annual cap determined by the Essential Service Commission should be applied to residential, farming, commercial, industrial and any other differential land category,” Ms Germano said.
“Increasing farmland values have no bearing on farmers’ ability to pay exorbitant rates bills.
“The fundamental principle should be that as the value of farmland increases, the differential rate is adjusted to reduce the rate in the dollar so that the rate burden paid by the farm sector remains stable.”
Retired Yarrawonga farmer Geoff Campbell agreed with Ms Germano’s sentiment, saying that farmers absolutely continue to get the raw end of the stick and it is just a complete wealth tax, not rates at all.
“Moira is well up. It is disappointing,” Mr Campbell said.
“We know that rural properties have gone up, but what I am more inclined to suggest is that at the moment, the rate capping system is on the total income of the shire.
“But there should be a cap on individual assessments the way I see it. Even if its 10%.
“Just because land has gone up by 50% or 40%, the rates really shouldn’t go up.
“Now that a re-evaluation is done every two years, whereas it used to be every five years around 30 – 40 years ago, they can see the trend that is going on and bring them up a little bit rather than jumping them up that quick.
“If you have a rate capping system that says you can go up by six or seven percent, that’s the maximum each assessment, then you can bring it up again in two years time. Not do it all in the one year.
“It’s a complete wealth tax.”
Mr Campbell, who was a councillor on the original Yarrawonga Shire, said councils across Victoria continue to be let down by our state leaders, with the three r’s including rates, not being administered.
“Certainly Moira Shire does need a differential farm rate,” Mr Campbell said.
“We’re let down by our politicians across the state, they had a chance to review some of the shire set ups this year and they’ve even made it worse.
“You go back to the beginning of amalgamations during Jeff Kennett’s time and he just simply said, he is going to amalgamate the shires but roads, rubbish and rates were the three important issues.
“They have seemed to have forgotten about roads, all we ever see is the pollies getting photos with the potholes, not going out and doing something for the local government with more money to help on that issue.
“With our rubbish, we are trying to save landfill but we shouldn’t have gone to the four bins system this year. We should have waited another year or so to see how the recycling worked.
“And the rates really are just a wealth tax.
“Councils just need to return to their core business, they need to be involved in more rate payer issues.
“We have to remember that farming or rural industries are still the biggest income earners in Victoria, so why penalise them.”
A recent report by the Rural Bank indicates that Moira Shire medium farm values have soared from under $2,000 per hectare in 1997 to just over $14,000 per hectare in 2023. In the Riverina Murray area, which includes the Federation Council area, farmland values have increased from around $1,000 per hectare to almost $11,000 per hectare in the same period.
Whilst the Moira Shire tops the VFF’s findings, Moira Shire CEO Matthew Morgan said that “council has not increased the rate applied to farming properties, in fact the rate in the dollar for all council rates has decreased by 5.7% and a comprehensive review will be conducted later this year.
“Moira Shire Council recently provided a submission to the Inquiry into Local Government Funding and Sustainability and supports the call for a review of the funding model for local government,” Mr Morgan said.
“Particularly we seek consideration of increased and flexible funding streams from the State and Federal Governments, to reduce the impact of providing local government services and infrastructure on our community and ratepayers.
“There is a growing funding gap between rate revenue and the cost of service delivery and growing expectations from community in services and infrastructure are provided.
“When it comes to the distribution of rates within the community, the largest single driver behind fluctuations in council rates across the state is the valuation of properties, which is undertaken by the Victorian Valuer-General.
“This is because the legislative framework council's work within for generating rates revenue is fundamentally a tax on wealth, determined by the value of property.
“We understand that there has been change in property valuations across the district, representing a change in equity and wealth, which naturally changes the distribution of taxation and will impact on each ratepayer differently.
“In this instance it appears as though there has been an increase in the value of farm properties broadly across the district.
“If individual property owners are concerned that their property valuation from the Victorian Valuer-General is not accurate, we encourage them to challenge the via the Valuer-General's office once they receive their council rates notice.
“Currently, residential and farming properties have the same rate applied to their property valuations, while commercial, industrial and vacant residential properties are levied a higher rate under council's rating structure.
“Changes to the rating structure need to be carefully modelled to ensure that the impacts of any changes are reasonable and reflect the principles of equity of taxation.
“Moira Shire Council's Rating and Revenue Plan will undergo a comprehensive review this year including modelling of changes to equity and wealth across the district to determine if changes need to be made as to how rates are distributed across our district moving forwards especially accounting for cost of living and other associated factors.
“This will involve extensive community consultation on any proposed changes to rates distribution.”
