Glenelg primary production land values down slightly last calendar year

The value of Glenelg shire's primary production land, which includes plantations, fell by 0.5pc, or $21 million, to $4.248 billion.

In its proposed draft budget, council is proposing a 1.91pc rate increase for primary producers, to 0.002404 cents in the dollar/capital improved value.

Glenelg mayor Karen Stephens said it appeared things had reached an equilibrium.

"I think we are seeing sales around about being fairly consistent, across the board - during COVID-19 we saw some massive increases, massive," Cr Stephens said.

"The market has found its balance and I think that's been reflected in the valuations."

But she said those valuations were set at January 1, 2024.

"We have seen some interesting sales just in the past couple of months in our area (Casterton) - it will be interesting to see, in this calendar year, how that affects the valuations."

Council has kept the differential for primary production land at 70pc of the general rate, the same as last financial year.

Cr Stephens said the average general rate would increase by 2.75pc.

"I think its a really good balance, we know that Glenelg has some really high value primary production land, which is to our advantage, and I think its fair to the residential, commercial and industrial owners as well," she said.

"There is a recognition that what you get in town is different to what you get in the bush but also the high value of the agricultural land is pushing those rates up."

In 2022, the council replaced a 30 per cent rebate for primary producers, in place since 2010/11, with a 70 per cent differential rate.

It sparked anger among many primary producers, who said it had resulted in rate hikes of more than 200pc for some farmers.

The Victorian Farmers Federation pointed out the proposal was based on council receiving gross, rather than net, rate payments from farmers.

Prime lamb producer, David Headlam, Casterton, said rates went up by 23pc last year, after council switched from the rebate to a differential rate.

"All general ratepayers, townspeople, business people, and farming communities - the whole lot of us - copped a 23pc increase," he said.

"They are still crying poor, at the moment, we are disgusted."

He said valuations were decided after the shire had set the rate in the dollar, when it had determined how much money it needed.

"It wasn't run as a true rebate, where you pay the full amount, then get money back on, it was just applied as a differential rate," he said.

"They told the state government it was essentially the same as a differential rate."

Wando Vale farmer Ann Munro, said it was disappointing to see council had not brought back the rebate.

"It's a real sticking point," she said.

"Of course we never, ever received a rebate and then they changed it back to a differential, and told us we owed them $3.29m and they whacked that onto the rates," Ms Munro said.

She said it was money that came out of the communities pocket - 'it's money we don't have to spend in our communities".

"They have employed a lot more paper shufflers along the way, I notice they have gone up by 20 or 30 people," she said.

"But the people on the ground, way out here on the edges of the shire aren't getting anything extra, we still get nothing."

But Cr Stephens said the council had never had the ability to issue a rates rebate.

"There is no mechanism, in the legislation, that allows council to give them a rebate - it's as simple as that," Cr Stephens said.

"They get a 70pc differential - but when your property values go up by 74pc, you will see a huge jump in your rates."