IF POLITICIANS don't urgently address the issue of rating inequities in rural Victoria, a legal case could be made out that farmers are being discriminated against as a class.
This is according to Ballarat-based lawyer, Sonia Smith, who has advised a group of farmers that a class action could be pursued on the basis that such discrimination against farmers was "illegal, harsh and unjust".
The group of farmers do not wish to be named, but hold concerns about going down that path, particularly because of the costs involved.
However, Ms Smith said it would be interesting to consider the years of devastation that have been wrought on farmers through unfair rates.
"This is urgent. Rates are creating hardship," she said.
"If it's a good season or bad season they are still rated, and we have quite a number of peri-urban farmers that are sinking."
Ms Smith said it had been 13 years since a group of farmers in the Gannawarra Shire in northern Victoria took their Council to the Supreme Court for manifestly unfair rates, but since then the inequities in rural rating had become worse.
"The rating system is draconian, discriminatory, and is rendering farmers uneconomically unviable," she said.
"Farmers are literally being rated off the land."
Ms Smith has urged the government to commit to an urgent Parliamentary Inquiry into Rating Inequities.
While the previous Coalition government committed to a rates inquiry, the current Labor Government has not made the same commitment.
But Moorabool Shire Council Mayor Paul Tatchell does not believe a Parliamentary Inquiry would solve the complex problem.
"We know what the problem is; the figures show the farming sector is disadvantaged by a rating system designed for urban living," Mr Tatchell said.
"If we are not careful we will price people off the land. I talk to farmers every day. Some are okay…some are severely disadvantaged by what is a horrendously unfair system. What other country in the world would rate primary industries?"
The most recent commitment by the Victorian Labor Government is to cap rates at the Consumer Price Index (CPI), which was at 2.3pc in 2014.
"I don't have a problem with capping rates, but it's a simplistic headline…not a solution. It's a vote winner," he said.
Victorian Farmers Federation (VFF) vice president David Jochinke has also weighed in on the debate, saying the rates cap alone would not be enough to shift the burden of rates from farm businesses.
Mr Tatchell added he had already attempted to reduce the burden on farms to no avail.
"We dropped differential rates last year, but land prices went up, so it didn't make a difference," Mr Tatchell said.
"You are damned if you do, and damned if you don't."
Rising peri-urban land values had aggravated the problem, but Mr Tatchell said councils had also been pushed into whole new era of service expectation.
"We need to re-evaluate what the role of local government is to get it back to what its job is," he said.
"We need to recognise what rates are, and recognise what farming is. A council's cost is 'X' to do its role and to advocate for capital infrastructure program. A farm's job is to provide for the economy. We shouldn't rate the economy."
But Mr Tatchell said he did not feel like he was fighting a losing battle.
"I'm known for putting the 12-ounce gloves on and fighting for people that matter," he said.
"Eventually like most things, common sense will prevail, but there is going to be a fair bit of collateral damage getting to that stage."
Over in Gippsland, Baw Baw Shire Council chief executive Helen Anstis said she was extremely concerned about the impact of capped rates.
She said the council was already under financial pressure as a result of government funding cuts. A restructure was being worked through, with proposed job cuts and redeployments on the table.
"If the CPI is at 2.5pc and the council has forecast we need the increase to be at 3.9pc, there will be a gap. We don't have any other revenue stream," she said.
"I'm absolutely worried. How is my organisation meant to be financially sustainable?"
Ms Anstis said one solution to the issue would be to revisit the GST debate, which would give local councils the chance to lobby for a share of the GST as an alternative revenue source – shifting the reliance away from rates.
"If that conversation was looked at again, it would be a way to use the GST to do away with rates," she said.
But while the discussion on rates continues, farmers such as Chris Sharkey said rates were hitting his Balliang East enterprise hard. He is paying $25,000 for his 2000 hectare property.
"I am struggling to cover the costs with my cropping this year," he said.
He would also like to see the Victorian Government commit to a Parliamentary Inquiry into rating inequities.
But Agriculture Minister Jaala Pulford could not commit to an Inquiry when questioned by Stock & Land, instead reconfirming the government's move to cap rates at inflation.
"The Andrews Labor Government is committed to consulting with the community on a fair go rates policy," a spokesperson said.
In regards to capping rates, a spokesperson from Victorian Minister for Local Government Natalie Hutchins' office said the government was committed to increasing transparency and responsibility in how councils spend ratepayers' money.
"Any council proposing an increase above inflation will need to explain itself. This is not an unreasonable ask. Councils should be able to be justify their budgets and they should be able to show their spending is of benefit to the community," the spokesperson said.
"Unfortunately some councils have attempted to pin their cuts to the policy, despite it being more than a year away. Clearly this is a long bow to draw, and councils need to be honest with their communities about how they choose to manage their budgets."
