Victorian local councils

The article below is about cost-shifting to local councils to cope with increasing demand for infrastructure and services. This is of course a reflection of population pressure. The councils once could limit the amount of new homes and development but their capacity to do this has been greatly eroded by state government. The state governments have also left councils with little option but to borrow and to gouge residents with higher rates to cater to ever increasing costs of population growth. Just as there seem to be no limits to population growth in Victoria, there are no limits to local rates in Victoria. The article below is an extract from Cardinia Ratepayers and Residents Assn Inc Newsletter.

There is a limit to tax charged under government legislation. There is no limit to Council rates that are charged at whatever level a Council decides upon in a financial period of up to four years. Federal taxes are calculated on income, sale of goods and service, stamp duty etc. Council rates are based on fluctuating property values and calculated on estimated necessary expenditure, not affordable expenditure. Somehow taxes have become merged with rates due to cost shifting from government onto local councils. Until ratepayers understand they are actually paying extra tax via council rates, requests for rates relief will fall on deaf ears because councils are delivering services and infrastructure beyond their financial capacity in order to comply with government policies of continuing growth and expansion.

The notion of “local government“ has been officially and politically perpetuated to legitimise the cost shifting carried out at state and federal level .

Government grants and financial handouts blur the reality of this situation. Ratepayers must look carefully at what they expect in return for taxes paid to government and what they receive in return for annually increasing rates paid to the local council. Rates and Taxes.

There is a limit to tax charged under government legislation. There is no limit to Council rates that are charged at whatever level a Council decides upon in a financial period of up to four years. Federal taxes are calculated on income, sale of goods and service, stamp duty etc. Council rates are based on fluctuating property values and calculated on estimated necessary expenditure, not affordable expenditure. Somehow taxes have become merged with rates due to cost shifting from government onto local councils. Until ratepayers understand they are actually paying extra tax via council rates, requests for rates relief will fall on deaf ears because councils are delivering services and infrastructure beyond their financial capacity in order to comply with government policies of continuing growth and expansion.

The notion of “local government“ has been officially and politically perpetuated to legitimise the cost shifting carried out at state and federal level .

Government grants and financial handouts blur the reality of this situation. Ratepayers must look carefully at what they expect in return for taxes paid to government and what they receive in return for annually increasing rates paid to the local council.

Original article at http://www.crra.org.au/news13/news1314.pdf