The Victorian Government has promised greater consistency and transparency for rate payers after it released new Ministerial guidelines for the use of differential rates.

State Minister for Local Government, Jeanette Powell, said that Victorian councils will now be required to apply a simpler, more consistent rates system.

“We are drawing a line in the sand about what is and is not appropriate so we do not see differential rates radically extended to include fast food premises, tattoo parlours and bingo halls or whatever the next soft target business might be,” Mrs Powell said.

The Ministerial Guidelines for Differential Rating establishes three categories of differential rates – those that are appropriate, those that are inappropriate and those that must be carefully considered before being applied.

Types and classes of land categories and their combination that are considered appropriate for differential rates include the following:

  • general land;
  • residential land;
  • farm land;
  • commercial land;
  • industrial land;
  • retirement village land;
  • vacant land;
  • derelict; and
  • cultural and recreational.

The Municipal Association of Victoria has wasted no time in condemning the changes, saying they amount to a direct assault on local government autonomy.

Cr Bill McArthur, MAV President said the reforms were more autocratic non-discretionary rules than guidelines, which raised more questions than they answered.

“Our legal advice suggests the proposed guidelines may be inoperable, as they appear to have overstepped the powers conferred on the Minister through legislation,” Cr McArthur said.

“Aside from the questionable validity of the guidelines, we are concerned that they will undermine the primary principle of equity in favour of appeasing certain vocal interest groups.

“The reforms appear politically motivated, rather than good policy based on sound reasoning.”