RATES relief could be on the horizon for Ballarat home owners.
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Newly appointed Local Government Minister Natalie Hutchins will discuss capping residential rates at the consumer price index this week.
Labor’s pre-election promise plans to cap all Victorian council rates at CPI.
The CPI was 2.3 per cent in the September quarter.
City of Ballarat rates increased by 7.5 per cent in the 2013-14 financial year and will go up 6.5 per cent in the next year.
Ms Hutchins said City of Ballarat’s rate increase was “quite high”.
“We are making sure residents are given a fair go,” Ms Hutchins said.
“We are progressing with the policy and are keen to get this up and running as soon as possible.”
Ms Hutchins said she would discuss the policy with the Municipal Association of Victoria and Victorian Local Governance Association by the end of the week.
At this stage, it is uncertain when the policy will be implemented.
“We have to go through a consultation with those two bodies,” Ms Hutchins said.
But City of Ballarat mayor John Philips is concerned about the policy.
“There are only a few options to raise revenue and rates is one of those,” Cr Philips said.
“We provide an excess of 100 services to the city and this (policy) means we would have to change the way we do business.”
Cr Philips said the policy could hinder the city’s growth.
“While we don’t want people to be paying more (on rates) than they have to, it will be very difficult for us to offer all of these services.”
Council has not spoken to the state government about the policy, but plans to do so soon.
Ms Hutchins said local governments could appeal the rate cap via the Essential Services Commission.
“If council can justify having an additional increase (to rates), they can (go) through the ESC and mount a case outlining why they need those extra funds,” she said.
“Most councils have other income streams.
“We are not looking to affect their entire budgets with this decision.”
The Courier previously reported that the City of Ballarat would lose $2 million from its budget in the first year and $4 million in the next, if residential rates were capped at the CPI.
kara.irving@fairfaxmedia.com.au