The Victorian Farmers Federation have welcomed the State Government's move to cap local councils’ rate rises at 2.5 per cent.
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The rate is based on Melbourne's forecast inflation rate for the next financial year. The VFF believe it was a step closer to a more accountable rating system to avoid “unfair rate burden which primary producers shoulder”.
Victorian councils are concerned the move would have long-term consequences on municipalities.
“A rate cap is not the solution to unfair rate burden which primary producers shoulder, but it is a good first step towards increased accountability and scrutiny of a budget for ratepayers,” VFF Vice President David Jochinke said.
The VFF is in support of the inquiry into the sustainability and operational changes of Victoria’s rural and regional councils that will be conducted by the Victorian Parliament in 2016.
The review will look specifically into the “fairness, equity and adequacy of rating systems”.
