Rating Strategy Review

About the project

Council is inviting the community to have their say on an updated Rating Strategy, which sets out how the rates “pie” is shared fairly across different types of properties.

Every year, the total amount Council can collect in rates is capped by the State Government (currently around 2.5%). This cap sets the size of the pie. The rating strategy won’t change the size of the pie - it looks at how that fixed amount is divided between residential homes, farms and vacant land.

In other words, how the pie is sliced, not how big it is.

Council last reviewed its Rating Strategy in 2016. Since then, Bass Coast has grown and changed, new State Government guidelines have been released, and a review ensures the system remains fair, financially sustainable, and aligned with current strategic priorities. The review is also one of Council’s key actions in the Annual Action Plan.

The Rating Strategy will outline how different property types — such as developed land, farms and vacant land — contribute to the overall rates pool. Three options are being explored. See more information about the options in the tab below.

Example: Currently, if a residential property pays $2,000 in rates: A farm property worth the same pays $1,600 (20% discount). A vacant block worth the same pays $3,000 (50% premium).

The review does not increase the total rates collected, rather, it determines who pays what share.

Complete the survey and tell us which option you prefer

Currently, Council provides up to $650,000 per year through a Land Management Rebate (LMR). Farmers can apply for this rebate to help offset the cost of environmental activities such as weed control and erosion management.

Since the rebate was introduced in 2016, the landscape has changed significantly. Many of the activities the rebate supported are now:

  • required by State law,
  • funded through other agencies,
  • or supported through specialist programs such as Landcare and Council’s own Biolinks program.

Council is also seeking feedback on providing a 20% rebate on waste charges for concession card holding pensioners. This would:

  • Provide $123 per year support to over $2,000 pensioner households
  • Be funded through the waste charge cost recovery model
  • Cost other residential ratepayers approximately $22 per year
  • Provide targeted support to residents on fixed incomes facing cost of living pressures

Options

Council has prepared 3 rating options for the community to consider should the LMR be retired. All options keep the standard rate for residential, commercial and industrial properties at 100% (labelled as Developed).

Each option reflects a different balance between supporting farms, encouraging development of vacant land, and keeping the system fair across all groups.

Most ratepayers will see minimal change because residential, commercial and industrial properties contribute about 86% of all rates.

Farm properties contribute about 6.5%, and vacant land about 8%. Across all options, this is not a rate rise, it is simply a redistribution of how the existing rates total is shared.

  • Current

    Farmers are supported through a Land Management Rebate

    • Developed Land (residential, commercial and industrial) - 100%
    • Vacant Land - 150%
    • Farmland - 80%


  • Option 1

    Maximum farmer subsidy increase, with development incentives

    • Farm rate reduced to 65% (35% discount - one of the lowest in Victoria)
    • Vacant land increase to 200% to strongly encourage development
    • Land Management Rebate removed (saving $650,000/year)
    • Result: 64% of farms better off or break even, strong incentive to develop vacant land, minimal impact on residential ratepayers, budget savings available for other priorities.

  • Option 2

    Moderate farmer subsidy increase with development incentive

    • Farm rate reduced to 70% (30% discount)
    • Vacant land increased to 175% to moderately encourage development
    • Land Management Rebate removed (saving $650,000/year)
    • Result: 57% of farms better off or break even, moderate development incentive, budget savings available for other priorities

  • Option 3

    Minimum farmer subsidy increase approach

    • Farm rate reduced to 75% (25% discount)
    • Vacant land stays at current 150%
    • Land Management Rebate removed (saving $650,000/year)
    • Result: 53% of farmers better off or break even with minimal impact on vacant land owners, budget savings available for other priorities

Property examples

The table below shows how the options would affect actual properties in our Shire:

Q&A

Provide a short summary of your question.

You have 150 characters left

Provide detailed information relating to your question.

You have 500 characters left

Select a respondent from the list that you would most like to answer your question.

Moderation Policy

These are the people that are listening and responding to your questions.

Joseph Kay

Manager Financial Services

{{ question.username }} asked

{{question.description}}

{{ answer.respondent.name }}
| Edited

Answer this question

Select the respondent who will be marked as answering the question

Provide the answer to the question. Answer can be saved as draft and published when complete.

No questions found

Survey

FAQ's