A report by the Municipal Association of Victoria (MAV) shows that some areas in Australia will be hit with a 3.3% council rate rise when the carbon price starts.

 

This data, taken from 3 councils around Australia, has shown lowered impacts on councils as compared to the 2009 proposed Carbon Pollution Reduction Scheme.


“Excluded from the carbon price are heavy on-road fuel use, legacy waste and smaller landfills within a prescribed distance of larger landfills, which have all reduced the overall cost impacts for local government,” said Cr Bill McArthur, MAV President.

 

“If all council cost increases were to be collected through rates, which is unlikely, it would result in a median 1.5 per cent increase – or around $22 a year or 42 cents a week.

 

“However, for over a decade Victorian councils have been actively working to lower their greenhouse gas emissions, and two thirds have adopted a formal greenhouse gas mitigation strategy.

 

“Actions have included changes to vehicle fleets, improved building and street lighting energy efficiency, landfill methane gas capture, green purchasing programs and use of GreenPower.

 

“This means that in many cases municipal expenses and any flow on impact to rates will be lower than our estimates, as councils find cost savings rather than pass on cost increases to ratepayers,” he said.

 

The carbon price is expected to primarily impact on local government’s electricity, gas and petrol costs; the generation of municipal wastes; and costs related to construction of buildings and infrastructure.

 

“One of the significant challenges still facing many municipalities is measuring and properly costing landfill waste emissions now and into the future.

 

“Up to 10 Victorian landfills could be directly included under the carbon price. Gas capture technologies and diverting waste from landfills will be a priority to lower councils’ costs and emissions liability.

 

“We welcome support the Australian Government will provide to help councils take advantage of opportunities under the carbon farming initiative,” he said.