Ratepayers on struggle street

Many Cardinia Shire residents are said to be struggling after the council increased the general rates by two percent this year.

By Jessica Anstice

The people have spoken and they’re not happy about the price of their rates.

Many Cardinia Shire residents are said to be struggling after the council increased the general rates by two percent this year, with some claiming their property has been ‘overvalued’.

With job losses continuing to increase due to the coronavirus pandemic, Bayles resident, Bianca Farrell, believes the council “shouldn’t be rising rates at all”.

Ms Farrell said she purchased her home two years ago and her rates were based on an estimated property value of $750,000.

Just one year later, she said the council based her rates on $1.05 million, the amount she purchased her property for.

“Councils just go on real estate sales sites and see what people pay at the time,” she said.

“I overpaid as there was nothing on the market similar at the time I needed to be out of my last place.

“Council pray on that and now my rates are over $4000 a year, which I cannot afford after losing my job last year and accepting a lower paid job this year just so I can pay my mortgage.”

Ms Farrell is clearly not alone in her struggle, with a large number of residents from all over the Cardinia Shire claiming to be in the same boat.

Officer resident, Marlon Overlunde, says the thought of having to pay a “steep” rates bill this year makes him feel “a little bit diffused and upset”.

“Friends of mine who live in Dandenong and Mount Waverley have had a reduction of $200 off their rates,” he said.

“For example, whatever job I was doing before, I’ve had to regroup myself and try and find something else that I could do and I did, and then they cancelled that too, so I was stuck.

“I know they’ve (the council) got a big area to maintain, I understand that, but it doesn’t justify it. They need to pull their heads in and start listening to the people.”

Mr Overlunde, who is on a pensioner rate, said he pays about $1700 in rates for owning a townhouse in Officer.

“The high rates are according to the retail value of the property, but say if I sold this townhouse, I’d never get the amount they’re estimating. Most of them are overvalued,” he explained.

“People are really panicking and some aren’t coping. They’re (the council) saying they’re going to hold off payments until next year, but we’ve still got to pay it and we don’t have jobs.”

“To raise the rates and give people the false estimate in this sort of time is going to make people think ‘this is ridiculous’ – it’s not common sense.”

Pakenham resident, Bree Rooff, and her husband, purchased a new home in July this year while in the midst of setting up a new business that has been unable to open due to the Covid-19 restrictions.

Ms Rooff said as per the rates notice she received, the council has estimated the property value of their new home to be $910,000.

However, Mr and Mrs Rooff only purchased it for $715,000, less than three months ago.

“The owner had this on the market for eight months prior and dropped the value of the house several times prior to our offer,” she recalled.

“At the time of our offer we were the highest bidder, the next closest offering $690,00 for this same house on the same day.

“This is a major discrepancy between their (the council’s) valuation and reality, without taking into consideration the economic downturn, compassion for the local constituents.”

Ms Rooff said she plans on objecting to the rates notice she received.

“I really would love to have someone from the shire explain their valuation,” she said.

“My husband and I are both full time working parents, educating primary and kinder aged children from home, trying to hold our head above water with a business that cannot trade.

“No consideration has been made to the families, working and investing in our local communities and economies in the midst of this pandemic.”

Cardinia Shire Council’s CEO officer executive manager, Tom McQualter, acknowledged that residents are “experiencing difficulty” in paying their rates.

“Those with questions about their valuation are encouraged to please contact the council to discuss their options,” he said.

“Council’s Covid-19 Community and Business  Support package includes a range of support for ratepayers. 

“Anyone  facing financial hardship and having difficulty making payments can apply for financial hardship consideration.”

Mr McQualter said eligible ratepayers, including pensioner Concession Card and Veterans’ Affairs Gold Card holders, can apply for a partial rebate ($50) for the 2020-21 rates.

He said the council is also offering a rebate for eligible Health Care Card holders or those receiving the Job Seeker payment.

The council has suspended interest and action to recover unpaid 2020-21 rates.

In addressing property valuations, Mr McQualter said it is conducted annually and the Valuer-General of Victoria (VGV) is the sole valuation authority.

To date, the council has received ten valuation objections from Cardinia Shire ratepayers.

In relation to the two percent rates increase, Mr McQualter said, “Without reducing the important services our community relies on, and despite  a  loss of revenue and increased costs as a result of the  pandemic, council’s 2020-21  budget is within the two percent rate cap set by the Victorian Government.

“Ratepayers experiencing difficulty  in paying their rates  or those with questions about their valuation are encouraged to please contact the council to discuss their options.”