Farm rate relief approved by Council

East Gippsland Shire Council will deliver, in full, the Victorian Government’s $1.51 million Local Government Service Support Payment as rate relief for all farm properties.

Council voted to pass on the $1.51m payment – approximately 32 per cent rate relief – at its meeting in Orbost this afternoon.

Mayor Cr John White said Council’s decision was the fairest way to deliver the support.

“Council elected to provide rate relief to all farm properties on a proportional basis, based on the applicable 2019/20 farm rates raised as at December 31, 2019, excluding any municipal or waste charge,” Cr White said.

“The rate relief is effective from December 31. By that time any objections to the 2019 valuations will have been processed and any farm rate assessment reclassifications will have been adjusted.”

The $1.51m Local Government Service Support Payment is part of the Victorian Government’s $31m drought package announced in October.

This is a direct response to our advocacy for the East Gippsland community on rate relief," Cr White said.

"Without the support of the Victorian Government, being able to consider providing rate relief would not have been possible," Cr White said.

"We understand this credit to all farm rate assessments won’t make it rain, but we trust it will take some pressure off farm budgets.

"What Council is allocating is in line with the joint ‘Looking Ahead’ document Council has produced with Wellington Shire in response to immediate, short and long-term needs for our drought-affected communities. That document was clear that rate relief would not be possible without the support of state or federal governments. With the support of the State, Council is now able to provide rate relief."

The government had advised that five per cent (about $75,000) of the funding could be used by Council to cover administration.

"We have chosen to absorb the administration cost, so 100 per cent of the funding will be allocated to eligible farm property rate assessments," Cr White said.

Any property that is classified in Council’s rating system as farm property is automatically eligible.

Council will send property owners a letter with details of the rate relief amount that will be applied to their current year rates, followed by an amended rate notice showing the rate relief amount and the adjusted balance of rates, including updated instalment amounts for those who have chosen that payment method.

Wellington Shire Council also received a Local Government Service Support Payment for farmers and has also allocated funds as farm rate relief at about 30 per cent of its general farm rate.