New rating strategy adopted

At its February Council Meeting, Bass Coast Shire Council adopted a new Rating Strategy, delivering a permanent rate reduction for the farming sector. The updated strategy modernises Council’s rating structure in line with sector best practice and shifts toward a fairer, valuation‑based system.

Following community consultation across from November 2025 though to January 2026, Council has endorsed several changes to rating differentials. These include reducing the farmland differential from 80 per cent to 65 per cent, increasing the vacant land differential from 150 per cent to 200 per cent, and retaining the developed land differential at 100 per cent. These changes will be incorporated into the development of the 2026/27 Budget.

The community was invited to provide feedback on the updated Rating Strategy, which determines how the fixed rates pool—set annually by the State Government cap—is shared across different property types. The rating strategy won’t change the size of the pool - it looks at how that fixed amount is divided between developed properties, farms and vacant land.

Consultation showed strong support for the pensioner rebate, an increased vacant land differential, and a lower farm differential. Feedback also highlighted concerns regarding the removal of the Rural Land Management Program (RLMP) and the need to uphold environmental commitments.

The review also introduces reforms to the Rural Land Management Program, including a revised program aligned with Council Plan objectives to enhance biodiversity and protect natural assets. In addition, Council will provide a 20 per cent Waste Charge rebate for eligible pensioners and short-term relief for first homeowners affected by the vacant land rate increase, delivered as a rebate on application with supporting evidence.

Bass Coast Mayor, Cr Rochelle Halstead thanked the community for having their say on how the rates pool gets shared.

“It was great for myself and our Council officers to sit down with you, explain a complex issue in simple terms, and break it down to one key question: What does fair look like to you?”

“The answers varied — and that’s exactly why your feedback was so important. Because of your input, it’s reflected in the final strategy through the reforms and the newly introduced relief for first homeowners.”

Completion of the Rating Strategy review fulfils a key action in the 2025–26 Annual Action Plan. The Rating Strategy 2026 will be included in the draft Annual Budget 2026-27 due to be released in April 2026.

Read the Engagement Summary.

Council invited 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.

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.

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

Note: All the 'Current Rates' examples assume that eligible ratepayers (Farms) are currently claiming the Land Management Rebate. All three rating options have been modelled without a Land Management Rebate. This has a more significant impact on large farms.