The pressure is building on the Victorian Government to provide financial assistance to help councils offer rate relief to cash-strapped ratepayers during the coronavirus crisis.
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Member for Benambra Bill Tilley said councils needed to play a meaningful role in the response to the pandemic to support the work being done by the federal and state governments.
"We know that our country rates are higher than metropolitan Melbourne, so that demands a disproportionate assistance from the state in these times of increasing hardship," he said.
"Those that can pay, should pay, however for others who will struggle there needs to be more than just hardship provisions that defer rates.
"(Councils) too will have to incur debt, be transparent in the money they receive from the state is a match for the shortfall in rate revenue and focus on core functions only.
"It can't go into plans for future capital works or administrative overheads.
"Everyone is tightening their belt.
"If they can achieve efficiencies then they should be looking at that, if they can relax fees, charges, and costs to help out businesses and ratepayers then hopefully they do that too."
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Mr Tilley's electorate includes Wodonga, Towong and Indigo local government areas with Towong under added financial pressure from the summer bushfires with a string of fees and other charges already waived to individuals and businesses in recent times.
All councils are in the process of preparing budgets for next financial year.
Ovens Valley MP Tim McCurdy said helping councils reduce rates was a fast and effective way for the state government to support distressed businesses and property owners.
"Councils should be offering rate relief to distressed households, but they need the state government to give them a hand," he said.
"Local councils do not have the bucket loads of cash city municipalities raise from parking fees and permits.
"They are not in the same position to freeze or reduce rates without state government support.
"Rate relief is a fast way to ease the burden on the community at a time when many are in a dire financial situation."
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