Unfairness of Rate Fluctuations as a Result of Property Revaluations

Decisions of the ordinary meeting of the Monash City Council held on 30 August 2016.

Notice of Motion

7.10 The Unfairness of Significant Rate Fluctuations As A Result of Property Revaluations

That Council:

1. Writes to all ratepayers with significant rate increases (i.e. those ratepayers with 6% above their 2015/16 rate notice) and express Council’s deep regret and apology for the significant increase they have received;

2. Notes that these increases in rates are a result of a significantly greater increase in the valuation of these properties over the past two years compared to other parts of Monash;

3. Acknowledges that the impact of such fluctuations in property valuations from year to year can be considerable, unreasonable and onerous for many ratepayers;

4. Notes that it, and other councils, are powerless to soften, prevent or even address such massive rate hikes from year to year due to fluctuations in valuations because the state government’s legislative framework for council rates does not allow it;

5. Resolves to write to the state government to reiterate its previous representations that the government should urgently review the state legislative framework governing council rates to allow greater equity, transparency and reduced year to year fluctuations in the calculation of rate assessments;

6. Resolves, in particular, to urge the government to legislate to introduce flexibility into the state rating framework to allow councils to:

a. limit the increase in any individual residential ratepayer’s rates from one year to the next based on property valuation changes so that individual rate bills cannot increase by more than double the overall percentage increase in rates for that year (i.e. for this year, 5%); and

b. cap the rate increase possible for any resident over 60 who has lived at their property for more than 10 years so they will never receive an increase above the overall percentage increase in rates (i.e. for this year, 2.5%); and

7. Resolves to write to the following to bring Council’s concerns in relation to this matter to their attention:
a. the Shadow Minister for Local Government;
b. the mayors and councillors of the other 78 councils in Victoria;
c. the Municipal Association of Victoria;
d. the Victorian Local Governance Association; and
e. National Seniors Australia.