CITY OF GREATER GEELONG 2012-2013 Rating StRategy

Case law on farming activities has concluded that recreational horses are not part of the recognised farming
activities. This has been further defined to allow that properties conducting a business of grazing animals for
agistment are farming businesses, provided the animals meet the definition of a grazing animal. Properties
training horses for racing purposes are not farming but are conducting a commercial activity. The
‘predominant use’ test is relevant to determine whether farming activities qualify as a farm.
Predominant or main activity requires looking at the amount of land used for the particular activity / activities
and also the intensity of that use. Mere comparison of relative areas occupied by a residential use and a
farming business is not decisive. Regard also needs to be given to the relative weights of the competing
uses (eg. residential verses business etc.).
3. Is the property a sustainable farming business?
Council collects information that assists in determining whether or not the property is being run as a
sustainable business (commercial venture organised for profit). The tests are in line with the Australian
Tax Office tests for a primary production business. The key tests include ABN, business names, regular
volume of activity, level of activity showing commercial objective, income level above Australian Taxation
Office threshold for income assistance and business plan for operation of the property.
The farming carried out must be on a sufficient scale as to have some element of independent viability,
therefore not supported by alternate income sources. The purpose of the farming activity must be
ongoing and the result being of significant commercial volume. Therefore, if the activities will only ever
produce small returns then they would be considered to be of a slight or minor character (Hobby Farm or
rural retreats). Seasonal fluctuations should not affect this outcome.
4. Is the property providing a municipal benefit?
Alternatively, land predominantly used or maintained for heritage, cultural or environmental purpose such
as land held as natural bushland under a trust for nature covenant, or other type of formal undertaking
will be classed as farm land under the definition. Small areas of the subject property will not be able to
attract the definition.
Large land holdings unable to qualify as Farm Land use would be typically tracts of land held for subdivision
and not being utilised in accordance with the criteria. In such cases, land will generally be rated at either the
residential or vacant land rating differential.
The Farm classification is reviewed when a property is sold or subdivided. An application survey is sent to
the owners to obtain details on the properties ongoing usage by the new owner. Based on the information
returned, the property is reclassified.
At times, Council may also mail out an application survey to groups of existing Farm classified properties to
ensure they are still using the land for farming purposes and therefore are still eligible for the farming
classification. Owners of properties not currently defined as Farm Land may request the application survey.
The rating differential will be determined based on the returned information.
The rebate will be set at 36.2% (46.5% 2010-2011 and 2011-2012) of the amount payable of the capital
improved value of the property.
Mixed Use Rate
Mixed Use is defined as properties having the characteristics of Residential and Commercial or Industrial
properties. Traditionally, Mixed Use rated properties included corner milk bars and home hairdressers. The
Mixed Use rate is a concessional rate to the Commercial rate. It now includes properties requiring food and
health permits to operate home businesses as well as properties providing short term accommodation from a
residential property. Mixed Use is determined according to the following flow chart.
Rating Strategy 2012-2013 Page 33