By BEN CAMERON
RATE capping from next financial year will take into account projected population growth and the specific infrastructure needs of Cardinia Shire Council.
Releasing Local Government Rates Capping Framework Terms of Reference early last month, Minister for Finance Robin Scott said the Essential Services Commission would advise ministers for Finance and Local Government on options for the framework.
Minister Scott said options should be “simple to understand” and “tailored to the needs of the highly diverse local government sector”.
“It should take into account factors that may impact on local governments’ short and longer term financial outlook,” she said.
“Such as … actual and projected population growth and any particular service and infrastructure needs.”
She said the ESC must also have a clear understanding of the difference between rural, regional and metropolitan councils “in terms of costs, revenue sources and assets maintained”.
Several Cardinia Shire councillors have argued rate capping would not suit an outlying council like Cardinia, considering its large expected growth and infrastructure needs.
Before November’s State Election, Central Ward Councillor George Blenkhorn feared the council would have to make some tough decisions to plug a $2 million budget gap if capping were introduced.
In parliament on 18 March, Minister for Local Government Natalie Hutchins announced a government initiative which will provide a consultative process with both councils and ratepayers.
“Since the last parliamentary sitting, the Minister for Finance and I announced the terms of reference for the Essential Services Commission to undertake a consultative process with councils and ratepayers around our government’s fair go rate system,” she said.
She said Casey increased rates by 10, nine and nine per cent over three years.
“It is just not fair on Victorian ratepayers,” she said.
“We care about how the actions of government- all levels of government – impact on the day-to-day lives of Victorians.
“Let me remind the house that after mortgage repayments, rate notices are the biggest bill that a household receives.
“We are taking a stand on behalf of ratepayers.
“We are dealing with the situation of the rate rises that were allowed to flourish in the last few years.
“We are getting on with the job. We are consulting. We have our doors open.”
The ESC will publish a draft report on rates capping framework within six months with a final framework report to be provided to the Minister for Finance and Minister for Local Government no later than 31 October.
