New Revenue and Rating Plan approved
Council has approved a Revenue and Rating Plan, a new requirement under the Local Government Act, which outlines how revenue is calculated and collected.
The Revenue and Rating Plan takes a four-year approach and explains how Council calculates the revenue needed to fund its activities. Council provides many services and facilities to its local community and must collect revenue to cover the cost of providing these services and facilities.
The City’s total revenue for 2021/2022 is expected to be $223M, made up of rates and charges (63 per cent), user fees and charges (16 per cent) and government grants (19 per cent).
The following key changes for the 2021/2022 year are:
- Decrease the farmland differential rate from 85 per cent to 75 per cent of the general rate
Council has seven other active differential rates that will remain the same as previous years in the next year but has planned for the Vacant Land rate to increase in 2022/2023:
- General: 100 per cent
- Commercial/Industrial A: 185 per cent of the general rate
- Commercial/Industrial B: 180 per cent of the general rate
- Commercial/Industrial C: 190 per cent of the general rate
- Vacant Land: 125 per cent of the general rate
- Vacant Land– Forest edge Maiden Gully: 125 per cent of the general rate
- Cultural and recreational: 0 per cent of the residential rate
Mayor Cr Jennifer Alden said the vacant land rate would remain the same for the next 12 months.
“After considering community feedback and with our four-year approach for the Revenue and Rating Plan in mind, Council has delayed an increase to vacant land in the 2021/2022 adopted Budget.” Cr Alden said.
“The vacant land rate will remain the same for the next financial year along with six other differential rates.
“In the second year of the Revenue and Rating Plan, an increase from 125 per cent to 200 per cent of the general rate is planned for vacant land in 2022/2023 and that will be considered as part of the proposed Budget next year.
“It is important to recognise that the increase planned for 2022/2023 does not increase the overall total of rates collected by the City from the community.
“In the adopted Budget for 2021/2022, the farm land rate has decreased from 85 per cent to 75 per cent of the general rate.
“This is in recognition of the fact that the valuations of farming properties are increasing in Greater Bendigo mainly due to mining and strategic land purchases, which is not necessarily reflective of farming businesses’ greater capacity to pay.
“The Revenue and Rating Plan is important because it sets out decisions that Council has made in relation to rating options available to it under the Local Government Act 2020. This is to ensure the fair and equitable distribution of rates across property owners. It also sets out principles that are used in decision making for other revenue sources such as fees and charges.”
To view the approved Revenue and Rating Plan, please visit: https://www.bendigo.vic.gov.au/About/Budget.