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Rates to double on vacant blocks

08 Feb, 2012 11:30 PM
ALEXANDRINA - Vacant land property owners in the Alexandrina Council district may pay double the residential rate in a bid to encourage development in the area.

Council also plans to introduce a fixed charge rate of $250 instead of a minimum rate as a mechanism so every ratepayer makes a contribution to the cost of council services.

The report Alexandrina Council Review of the Rating System, prepared by Skilmar Systems Pty Ltd, says it would introduce a differential rate on vacant land by taking the general rate and adding 100 per cent on top.

The report says under the proposed changes, the increase in the rate in the dollar for vacant land will result in most vacant land properties receiving an increase in rates.

"The bulk of vacant land properties will receive an increase in the range of 40 and 50 per cent, or a range of $200 and $300," the report says.

A total of 2,213 properties are recorded as vacant, and only 103 properties will receive a decrease in rates as a result of the move to a fixed charge.

Under the proposed regime, a vacant allotment valued at $100,000 would have paid $860.96 this financial year, had the regime been implemented in the 2011/2012 financial year.

In comparison, a house valued at $300,000 would have paid $1166.44.

However, any increases in excess of 50 per cent will be made better by the introduction of a general cap of 50 per cent on rate increases.

Council would like to maintain the current 17 per cent reduction in the general rate for primary production properties.

Nearly 11,000 properties across the district will have an increase in rates up to 20 per cent.

Goolwa District Ratepayers and Residents Association chairperson John Carter said under the proposed changes, not everyone has to pay more.

"If you are a primary producer you could receive a further nine per cent discount on top of the 17 per cent already in force," he said.

"If the capital value of your residential property is more than $380,000 your rates will drop. The greater the value, the greater the percentage fall.-

"We liken this to a 'Sheriff of Nottingham Tax'. In all models presented by Council there is an increase in the rates to be paid by those in the Community we believe are less able to pay, and this we consider to be abjectly unfair and morally unacceptable.-

"If you would like copies of the spreadsheets produced by our Association, send an email to goolwa.ratepayers@gmail.com and we will email you a copy. We invite you to visit our blog at http://goolwaratepayers.blogspot. com.au/ Please feel free to contribute if you wish."

The proposed rate changes are open for public consultation. Copies of the plan can be downloaded from the council's website www.alexandrina.sa.gov.au or contacting the council on 8555 7000.

People can make written responses to the report by February 22 at 5pm.

They can also visit the council's consultative website MySay at http://mysay.alexandrina.sa.gov.a u/ratingpolicy.

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Date: Newest first | Oldest first
Council should not charge rates at all on vacant land to promote the development of vacant land.

Because most people building have to pay rent and at the same time cover land repayments and building instalments at the same time.

This is not affordable for most family's.

This is why there is so many vacant blocks of land

Charging double rates on vacant land will stop development in its tracks.

Also why should my rates as person building a family home and business owner be subsidising another business eg primary producer. Every business needs to stand on there own two feet. business shou

Posted by SilverSurfer, 10/02/2012 7:46:07 AM, on Victor Harbor Times
I can't belive this would even be considered. We have a block of land on Hindmarsh Island, which we were fortunate to purchase without a limited time to build and now we are going to be penalised.

We already pay council rates, water & sewerage even though these services are not being used - perhaps we can get a refund on these items when the time is right?

Very disappointed this is even being considered. Agree with SilverSurfer - are we wanting to stop development in its tracks??

Posted by Dismayed, 14/02/2012 7:28:14 PM, on Victor Harbor Times
Council should become more "Cost effective"..before considering such anti-development ideas. Leave adjoining block holdings alone as well.

Less expenditure means less revenue required, translating into less rates & taxes. Far too much un-necessary revenue is spent on the "Tidiest Town" in this municipality.

Posted by Unrealalistic, 22/02/2012 3:49:21 PM, on Victor Harbor Times

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