Initially the change was sought so the rates paid by homeowners could be reduced.

Instead, some of Ararat’s biggest businesses, including Aldi, Woolworths, and Target are set to receive huge reductions in their rates.

A government press release said a request for intervention had been made by the Victorian Farmer’s Federation and Ararat mayor Paul Hooper.

Cr Hooper said it showed the government had issues with council’s draft rates strategy.

“It can hardly been seen as a vote of confidence by the state government in what we are doing,” he said.

“As far as I am concerned their decision is the umpire's call – then we get on with it.

“In effect a lot of the farming properties, particularly in the southern part, will receive rate increases in the order of 45 per cent.”

Farmers currently pay a 55 per cent rate variation, homeowners pay 100 per cent and commercial and industrial properties pay 160 and 130 per cent each respectively.

Council is proposing to introduce a uniform rate, meaning farms would be increased to 100 per cent, by both commercial and industrial properties would be reduced.

There would be no change for homeowners.

The state government’s Commission of Inquiry will investigate the consultative process carried out to develop council’s budget and rating strategy and the administrative capacity of the city.

Commissioners will be announced next week and they will deliver a report on their inquiry on August 1.

The government press release said council’s extreme changes to its rates system deserved more careful consideration.

“While the Rural City of Ararat, like all councils, is entitled to make its own decision on differential rates, changes this extreme deserve more careful consideration,” it said.

“The draft budget proposes to bring to an end all differential rates in the city, increasing the total rates paid by farms to over 50 per cent.”

Council vote on rates on Tuesday night.