THE Victorian Government says it is “very prepared” to consider strategies that would reduce the “scandalous” disparity between rural and regional rates and those of metropolitan counterparts.
Speaking in State Parliament this week, Member for Mildura Ali Cupper said she had put forward two proposals to the State Government in an effort to bridge the divide.
They included a recurrent grant scheme for the most disadvantaged councils as well as an equalisation funding system that would level the playing field for all rural and regional councils “once and for all”.
“After extensive consultation with rural and regional councils and peak bodies, including Rural Councils Victoria, the Municipal Association of Victoria and the Victorian Farmers Federation, last week I formally submitted a proposal for regional rate reform to the Minister for Local Government,” Ms Cupper said.
“Statewide rate reform is needed because of the scandalous disparity between metropolitan and rural-regional rates,” she said.
“Right now a farmer in Buloke is paying six times the rates of a resident in Stonnington for a property of the same value.
“This might pass the pub test in Toorak, but it falls well short in Birchip.
“Does the government agree that this disparity is an economic injustice for rural and regional communities?”
Responding to Ms Cupper’s question, Minister for Energy, Environment and Climate Change and Minister for Solar Homes Lily D’Ambrosio said the government was “absolutely committed” to supporting rural communities.
“We know that it is particularly tough for rural councils in terms of financial sustainability, and it is something that has preoccupied our government now for some time – to work with those councils and to work with various industry bodies and communities to find some ways to help them to achieve greater financial sustainability,” she said.
“I know that certainly the Minister for Local Government has had a number of meetings with the Member for Mildura.
“There have been regular engagements that the minister has had, certainly with those councils, and he is certainly very much committed to looking at a range of options, working with those councils, the industry groups and the communities ultimately who are served by those regional and rural councils to work through solutions.”
Ms Cupper further pressed Ms D’Ambrosio, asking if the government would consider the two strategies she put forward.
“I understand that the proposal that she refers to, which has been submitted to the Minister for Local Government, is a very comprehensive one,” Ms D’Ambrosio said.
“It identifies a number of the challenges, which of course we are very well aware of but also explores a number of options for consideration.
“I am very confident that the government, through the Minister for Local Government, will be very prepared to consider very carefully all of those options.
“Certainly there has been some work under way and some decisions made with respect to matters to do with equalised funding systems and the like.
“However, there are many ways that can be considered and explored to really help achieve ultimately that greater financial sustainability for those rural communities in particular.”
