By VANESSA VALENZUELA
ANGRY residents have slammed a new assistance package designed to help them manage recent rate hikes.
At last week’s council meeting, landholders in Tarneit, Truganina and Mount Cottrell refused the urban growth zone assistance package, claiming the offer was unfair.
The policy offered by Wyndham Council will allow eligible ratepayers to defer the payment of their increased rates until their property is developed or sold.
Residents will have access to the package if they have experienced rate increases of $1000 or more, or valuation increases of about 75 per cent, since the 2011-12 financial year.
The sum of the increased rates payable plus the municipality’s average increase of 5.5 per cent can be deferred by ratepayers, and interest on the deferred amount will be 6.5 per cent.
Under legislation the council must charge interest on overdue rates and charges at a penalty rate of 10.5 per cent.
Tarneit Landholder Joe Magro said the offer was not a suitable outcome for the hundreds of residents who have had their rates increased.
He has requested that the Victorian Ombudsman investigate Wyndham Council’s decision to increase rates.
“I believe that this is only a token gesture to try and pacify us until after the upcoming council elections,” Mr Magro said.
“The 6.5 per cent interest is a pacifier and very unfair. A mistake has been made and council should wear the consequences. No interest should be charged until this issue is resolved.”
Wyndham’s corporate services director Steve Lambert said the interest was based on the amount needed to make up for the loss of its required rate income.
“The six and a half per cent is tallied around what it would cost us,” Mr Lambert said.
“If we don’t get that rate money through the front door, we’ve got to go and source it from somewhere else otherwise we can’t deliver our services.”
Mr Magro said the council should go back to the drawing board and re-issue new rate notices to anyone who has been affected.
“I’ve spoken to a number of residents over the last couple of days and they are bewildered. They don’t know what is going on and where they stand,” Mr Magro said.
“It’s obvious that the council cannot grasp the intensity of this situation. People are stressed out and depressed not knowing what is happening.”
