THE Victorian Farmers Federation has called for a fairer rates strategy for the agricultural community.
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It comes as Horsham Rural City Council released its draft rates strategy for the next financial year.
The strategy proposes to maintain the farm differential at 80 per cent of the general rate but expects to raise the farm rates by an average 11.77 per cent.
The residential rates are due to decrease, on average, by 0.58 per cent.
Victorian Farmers Federation president David Jochinke said the farming sector would pay a greater increase on council rates than other sectors – including industrial and commercial. He said the statewide residential rates cap of 2.25 per cent should be felt across all categories.
“The farming sector will be paying a greater rate increase than any other sector,” he said. “Who council collects it from is at their discretion. What we are saying is that everyone should have their rates increased by 2.25 per cent. We are saying that we want all sectors increased by that much because the burden falls on farmers.”
Mr Jochinke said there was a trend within councils to not adjust the differential rate to ensure the agriculture industry did not carry the burden of a rates increase.
“We see in certain councils they don’t take that into account when using the differential system. It is there to adjust the amount of rates paid by a category to make it harmonious and fair,” he said.
Councillor David Grimble believed the council needed to partake in an independent review of its rates strategy.
He said he found it hard to defend the position of the farming sector because the rates system was a land tax.
“It is hard for me to defend the position of the farming sector, which I am involved in, when we have high land values. That is the problem,” he said.
“I know the VFF would like to see our rate strategy in sync with our cap on capital expenditure and that is a fair and valid comment.”
The strategy says the council will review the differential during the early stages of the planning process for the 2019-20 budget cycle.
The council expects to raise 44.5 per cent of its total revenue from rates during the 2018-19 financial year.
The draft rates strategy is open for public comment; submissions close at 5.30pm on June 6.
The council estimates its general income to reach $30.2 million. Its total service delivery and finance costs are $21.79m and its total initiatives and capital is estimated at $8.4m for the 2018-19 period