RURAL property owners will pay less of a share in rates in 2018/19 under draft rating strategy, and budget documents to reduce the impact of skyrocketing property valuations.
It comes as the value of rural zoned properties have escalated 17.41 per cent in the past two years, prompting Rural City of Wangaratta council to propose the reduced share in the budget currently on public exhibition.
The Fair Go Rates system determines the maximum council’s rates income can increase by (2.25 per cent in 2018/19), but this does not mean everyone’s rates go up by a blanket amount.
Valuations conducted on behalf of the Valuer-General Victoria determine how the rate is distributed, according to the Capital Improved Value (CIV) of a property.
Rural City of Wangaratta mayor Ken Clarke said the spike in rural property valuations meant council had to intervene.
“The value of Rural 2 (farms above 40ha in size) properties has gone up by 17.54 per cent, while general properties have gone up by just 7.08 per cent,” he said.