CITY OF GREATER GEELONG 2012-2013 Rating StRategy

Special Charge Rates – LGA Section 163
Council may declare a special rate or charge or combination of both only for the defraying of expenses or
repayment of loans where there is a special benefit to the persons required to pay the special rate or charge.
Council has declared a special rate in respect the central business district of Geelong applicable to nonresidential,
non-exempt properties. The special rate is the Central Area Activities Rate and is in addition to
other rates and charges. The purpose of the special rate is to promote the CBD as a commercial shopping
precinct using events, marketing and media. Over the next 5 years the rate is declared to raise $602,000 per
year with a CPI increase each year as well as a $50,000 increase in year 1, 2 and 3. For 2012-2013 the rate
will raise $671,000 ($602,000 in 2010-2011). The rate in dollar for 2011-2012 is set at $0.0005380 and
$0.000168 for Cultural and Recreation (Cultural and Recreation properties are charged a reduced CAA rate,
in accordance with the ratio of the recreation rate to the commercial rate).
Council from time to time declares special charges in respect to street schemes, construction of footpaths
and area beautification subject to the provisions of LGA S163-S166.
Rebates
Rebates – LGA Section 169
A rebate is a mechanism through which a targeted group receives a discount or concession to achieve
certain objectives. Essentially rebates are funded through the general rate pool. More specifically, the
amount required to fund the rebate is calculated and is incorporated into the total rates and charges
requirement. For transparency the amount of any rebate or concession funded by ratepayers should be
declared on an annual basis.
Council may grant rebates or concessions in accordance with the LGA to assist the proper development of
the municipal district, to preserve, maintain and restore historical, environmental, architectural or scientific
buildings or places of interest important within and to the municipality, to or to generally assist the proper
development of all or part of the municipal district. Generally conditions or undertakings are required and if
not met require the rebate or concession to be repaid in part or in full as the case may be.
In 2009 the Local Government Act was amended to allow Council to provide rebates to support the provision
of affordable housing by a registered agency. It is not proposed to provide any rebate for the provision of
affordable housing for 2012-2013.
Community Grants
Council operates the community grants, sponsorships and donations program allocating $6.0M to support a
wide variety of community organisations, events and networks. Based on principles of accountability and
transparency, and in lieu of the granting an application for rebates of rates, it is Councils’ preference that
such organisations apply for funding under this program.
Pensioner Rebates
Holders of a Centrelink or Veterans Affairs Pension Concession card, or a Veteran Affairs Gold card which
stipulates TPI or War Widow (excludes Health Care and DVA all conditions, POW, EDA and dependant
cards) may claim a rebate on their sole or principle place of residence.
For 2012-2013 the government-funded indexed rebate is provided under the Municipal Rates Concession
Scheme. It will increase from $193.40 to $198.20 for 2012-2013 or 50% of the rate payment, whichever is
the less. Upon initial application, an ongoing eligibility is maintained unless rejected by Centrelink or
Department of Veteran Affairs during verification procedures. Upon acceptance of pensioner status the
concession or rebate is deducted from the rate account before payment by the ratepayer.
Applications for the concession must be lodged by 30 June in each year.
In 2010 the MAV undertook a statistical analysis of figures across Victoria that showed on average 2.25% of
household expenditure was spent on Council rates. The study indicated that households occupied by oldage
pensioners are likely to have a higher rate burden. The study recommended that the MAV should call for
an increase in the State Government pension rate rebate.
Policy Statement: Council considers that it is not appropriate for Council via ratepayer funds to make an
additional rebate or offset to all pensioners.
Rating Strategy 2012-2013 Page 37