Mayor moves to hose down rate misinformation over increasing land values

He will attend the Bega Chamber of Commerce meeting on Thursday, May 4 and said he would be happy to meet the Merimbula Chamber or any other organisation such as Lions, Rotary who would like to better understand land values and how they impact rates.

Bega Valley has topped the South Coast residential land value increases at 62.1 per cent but that is just the average. Many ratepayers are seeing increases of well over 100 per cent and it is creating concern and confusion.

Ratepayers have voiced their concern to the mayor and on social media with some people worried that because their land values have doubled, their rates will too.

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But this is not the case.

Land values do not affect what council collects in total from general rates, which are the figures listed as "residential" (the ad valorem) and "residential base rate" on a rates notice.

Land values impact the share of rates across ratepayers (ie how much each ratepayer pays), not the total amount of rates council collects.

The total sum council collects can only increase by the rate peg which is 4.1 per cent from July 1, 2023 or by the approval of a special rate variation (SRV). Council has applied for an SRV of 24 per cent from July 1, 2023. IPART (Independent Pricing and Regulatory Tribunal) will indicate whether it approves the increase this month.

However some rates may go up and some may go down depending on how much a ratepayer's land has increased. Cr Fitzpatrick said that anyone whose land has gone up by under 100 per cent is likely to see their rates stay the same or go down.

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Land values have risen particularly steeply around the coast but not as much in some inland areas.

As a result council has prepared two sets of figures for ratepayers to look at and also has a rate's calculator which can be downloaded from its website (look for the box which says Rates Calculator on the right hand side of the page).

For residential ratepayers not able to download the calculator, there are two sets of figures which need to be used.

For the 4.1 per cent increase the new base rate will $565 which should be added to the sum of your land value multiplied by the ad valorem of 0.00161247.

For the 24 per cent increase the new base rate is $672 which should be added to the sum of your land value multiplied by the ad valorem of 0.001916732.

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