In February, a $300 jump in rates from the previous year had Goon Nure/Bengworden farmer, Robert Hoffman, wincing.
To add insult to injury, they’ll increase yet again if the East Gippsland Shire Council’s recently released draft budget for 2019/2020 goes ahead.
Council last week announced it may revisit its draft budget prior to public submissions formally closing on Friday, May 10.
Fourth-generation on the same property, Mr Hoffman and his wife, Kaye, run cattle and sheep on 400 acres.
Their last rates bill was $5315.
The Hoffmans estimate their income is down 40 per cent due to dry seasons and the consequent de-stocking and feeding.
“The general consensus is the recovery time will be three years,” Mr Hoffman said.
“On a good year, rates-to-income works out at about five per cent. On a crook year it’s more like eight or nine per cent. Everything’s a tax, it’s just given a different name.
“In the past decade land prices have doubled but the income out of them hasn’t,” he said.
“We have to make cutbacks. Surely the shire can cutback on non-core functions and concentrate on the basics?”
Page 34 of that draft budget shows a 1.99 per cent increase in the rate in the dollar charged for farm properties’ capital improved value (4.1.1(b)), which then equates to an increase of 12.09 per cent on farm rates overall – or $547,000 (4.1.1(c)).
The draft budget forecasts an operating surplus of $13.868 million after raising rates and charges of $58.629 million and capital revenue of $9.234 million. Excluding non-recurring capital funding, an adjusted underlying operating surplus of $3.909 million is forecast for 2019-20.
The Hoffmans also manage a property for local land and business owner, John Dahlsen.
In March, Mr Dahlsen tried to garner support to establish a local ‘drought-hub’ where farmers could gather for information, and in April released a paper on rate reform and the farmer, as well as a case study on East Gippsland Shire Council.
“The rate increases are an absolute debacle,” Mr Dahlsen said.
“How can they treat farmers like this? Farmers simply can’ t afford it.
“Council is capable of waiving that – why don’ t they?
“A couple of big properties have increased in value, which trickles through.
“It shows total insensitivity.”
Mr Dahlsen believes the Labor government should be congratulated for capping rate increases at 2.5 per cent – known as the Fair Go Rates cap – at a time when “rates were rising at double the rate of inflation, wages and prices” and is calling for an independent review.
“It now makes sense to have an independent enquiry to review the equitable basis of the rating system – but that will take some time,” Mr Dahlsen said.
“In the interim farmers are sinking. As an interim measure there should be no increase in farmers rates, they should be cut by 50 per cent pending the outcome of the enquiry so farmers can survive.”
Mr Dahlsen said only one councillor of nine, Cr John White, voted against the rate rise.
“Cr White should be commended for his courage and sensitivity to support the farmers.”
Council encourages the community to have a say on the draft Revised Council Plan and draft Budget.
The documents, and information on how to make a submission, are available from council’ s engagement portal, Customer Service Centres and Outreach Centres.
Written submissions are invited until noon, Friday, May 10, and June 4, 1.30pm has been designated to hear submissions. People need to note they want to speak to their submission.
Council will consider adopting the documents, with or without amendment, at its ordinary council meeting on Tuesday, June 25, at 1pm.
PICTURED: Local farmer, Robert Hoffman, has been “throwing money on the ground” – more commonly referred to as feeding stock – for two years and says “farmers have to make cutbacks in hard times, why can’t the local council?”
