Towong Shire opposes Andrews Government proposal for annual land valuations

One of the smallest shires in Victoria and already taking measures to rein in costs with the introduction of rate capping, Towong estimates the latest government would cost the council $30,000 each year.

It equates to a 0.5 per cent rate increase and an impost the small council can do without, according to mayor David Wortmann.

"Annual land valuations will place an additional financial burden on small rural councils like Towong at a time when we are doing everything we can to reduce costs and adhere to rate capping."

"We support the Municipal Association of Victoria and Rural Councils Victoria in calling for wider consultation with the sector, and a move towards four-year valuations for small rural councils like ours."

Towong successfully applied for an exemption to the first year of rate capping in Victoria, but has not determined whether to make a second successive bid.

Councillors recently agreed to a pay cut and scored a bonus when it was spared about $50,000 for not needing to conduct an election last year when nominations matched retirements.

The peak body representing Victoria's 38 rural councils including Towong Shire said the switch to annual valuations could further cripple their financial sustainability.

They make up 79 per cent of Victoria’s land area and were already facing cost pressures to deliver essential services and facilities to their communities.

RCV chairman Rob Gersch said rural councils can't absorb the costs associated with annual property valuations.

"This proposal presents a significant financial burden to small councils already limited to a 2 per cent rate rise cap," he said.

"It is also another impost on councils with small rate bases that are facing increasing cost pressures to maintain local roads, bridges and other essential community services.

"The Municipal Association of Victoria has stated that four-yearly valuations could save rural councils the equivalent of a 1 to 2 per cent rate increase.

"Those councils could reinvest that money back into local services or vital road upgrades."