NEW RATE CONCERN

Farmers face massive hike

A new rate differential to be introduced on land earmarked for future residential development will have the potential to force farmers off their land, according to a Warragul property owner.

Brian Brewer told Baw Baw Shire Council his family’s property in Dollarburn Rd was identified in the precinct structure plan as a future growth area but he feared they may end up paying extraordinary rates until the land is sold for development.

He said his family had been through a similar situation in a growth area of another outer Melbourne municipality and their rates reached $30,000, forcing them to walk away from their farming business.

Council proposes to introduce a new rate differential for land identified for future residential development.

Almost 240 properties included in the Warragul and Drouin growth area are affected, and are mostly farm zoned land currently rated at a 10 per cent discount for the farm differential rate.

If approved, the new rating strategy would see residential development land rated 30 per cent higher than existing residential rates.

Land values for these properties will be largely determined by market movements.

Mr Brewer addressed a special council meeting last week as part of the budget consultation process. The draft budget and rating strategy outlining the new rate differential will be considered by council tomorrow night.

While acknowledging the shire has authority to claim relevant rates, he said council needed to be conscious not to push farmers off nearby land as this would have a negative impact on the rural amenity of land near Warragul.

The Brewer family own a 40-acre cattle-grazing property in Dollarburn Rd.

Mr Brewer said they received a letter from the shire, indicating the value of their land and therefore rates would be based on sales of land in the area.

In a letter to council, the Brewer family urged council to carefully manage rate increases that propose to be based on land valuations and sufficient sales evidence.

The Brewers said the rate increase needed to ensure there was no negative impact on Warragul by investors who land bank.

“Rate increases should be kept to a level where farming enterprises around the urban area are encouraged and are financially viable,” the letter said.

Mr Brewer told council there was a big difference between land on the south side of Dollarburn Rd and on the north side.

He said the south side backed onto Waterford Rise and would be developed as a progression of that estate.

“Our place would be one of the last areas to be developed. Any rates increases must be indicative of this fact.

“We are very concerned because we have owned land on the urban growth boundary in another shire where the rates were put up to such an extent that farmers were forced to sell.

“The last rate bill we got in that shire was over $30,000 and it just wasn’t viable to stay there.

“Then developers came in and land banked the land...the quality of the land just fell away.

He said one of the qualities of Warragul was that farm land surrounded the town - “it would be a travesty to lose that.”

Mr Brewer said they were aware their land had been identified as future residential land in the precinct structure plan.

But he said the property was on the northern boundary and would therefore be one of the last areas to be developed.

He said it was nice to have the land and an increased value but they would end up being rated off the land.

Mr Brewer said he understood it was a difficult situation.

“Ten years ago we were a rural shire but with growth the shire has to manage the change.

“We can accept the logic in it if we have to pay residential rates for two years before the houses come but it could be 15 years away and then it’s not viable.

“It is probably the developers that should be contributing a bit more rather than the farmers,” he said.