Draft Revenue and Rating Plan 2025 - 2029

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Swan Hill Rural City Council is currently reviewing its Revenue and Rating Plan and is seeking community feedback on the available options.

In line with the Local Government Act 2020, this review must be completed and adopted by 30 June, following each local government election. The plan outlines how Council raises revenue to fund essential services and infrastructure, with general rates making up the largest share—38% of total revenue. This review focuses on how the general rate burden is distributed among ratepayers, rather than the total amount collected.

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Draft Revenue and Rating Plan 2025 - 2029
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FAQ

In accordance with the Local Government Act 2020, SHRCC is reviewing the Revenue and Rating Plan with a requirement to adopt the plan by the 30 June. The Revenue and Rating Plan must be reviewed by the elected Council following the local government elections (every four years).

SHRCC raises revenue from a variety of sources to fund the provision of services and infrastructure to the community. Major sources of revenue include rates, grants, fees and charges and contributions. The largest component of revenue is the general rate which generates 38% of the total revenue received by Council. Operating grants from State and Commonwealth governments are 14% of total revenue. Council also relies heavily upon capital grants to continue to provide community infrastructure, which is expected to be 21% of total revenue in 2025-2026.

The general rate is a form of property tax that is used to fund the essential community infrastructure and services that all ratepayers benefit from. The value of each property is assessed each year by the Valuer-General Victoria and is provided to the Council and used as the basis for calculating what each property owner will pay. Council can make decisions to differentiate the general rate by applying a different rate in the dollar to apply to different types of ratepayers.

A key purpose of the review of the Revenue and Rating Plan is to consider how Council distributes the burden of the general rate – not how much is generated. Council is constrained by the Fair Go Rating System and can not increase the total general rate above that which is set by the Minister (called the rate peg). In recent financial years the rate peg has been set by the Minister below the actual cost increase for local government services, and if continued places a significant risk to the financial sustainability of local government.

The current share of the rate burden is outlined in the table below. Residential properties are contributing 44.0% of the general rate used to fund Council services and infrastructure. Farmland properties contribute 46.1% and business properties contribute 9.9%.

Council has considered in detail seven different options, comparing the impact each option has upon the share of the rates burden across residential, business and farmland properties as well as the impact the options has upon individual land owners – including the maximum, minimum, average and median rate assessments.

Council is considering an option to reduce the number of rating categories, by charging the same rate in the dollar for residential properties (except for vacant residential land in Swan Hill and Robinvale) and the same rate in the dollar for commercial and industrial properties (adjustment to Industrial category to be staged over three years). The burden on the major categories of residential, farmland and business will remain relatively the same.

During the review Council has considered a range of information that has been provided by the Officers and a consulting firm AEC Group. AEC Group has provided Council with a socio-economic profile of the region, highlighting indicators of wealth and capacity to pay for residential, business and farmland properties.

There is a substantial amount of information that Council has considered in the Draft Revenue and Rating Plan. Included in the information are socio-economic indicators provided by AEC Group that suggests:

While our region has lower median household incomes, and impacted by increased cost of living, there are fewer households in mortgage or rental stress than the State average.
Our region has lower unemployment rate, fewer people who require assistance with core activities, lower degree of reliance on social services and lower pension rate compared to comparative regions.
The average residential rate of $1,533 per year is 1.88% of the median household income ($81,478). AEC Group advice is that this percentage is on average when compared to similar councils.
The total rates received by productive industries (farmland and business) as a percentage of the total gross operating surplus generated is 2.56% which is relatively similar to other councils.

When considering options on how to share the burden of the general rate, the Council has been guided by rating principles. The equity principle is a key consideration, ensuring that the rating system is generally equitable and there is a sound balance between horizontal equity (ratepayers in a similar situation should contribute similar amounts) and vertical equity (ratepayers who are better off should pay more than those worse off). Council is also concerned that our rating system is generally fair across all ratepayers. Other principles ensure the rating system is efficient (does not unnecessarily impact economic decisions), simple and sustainable. It is not possible to completely satisfy all principles, but rather the principles guide the Council’s consideration.

Council considers the community needs first before deciding on how much to raise through the general rate. The total amount required is split across the different rating categories – residential, farmland, business and recreation land. The amount required by each category is divided by the total valuation of properties in the category to achieve a rate in the dollar for that category. The rate in the dollar is then applied to your property valuation to calculate your rates assessment.

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Draft Revenue and Rating Plan 2025 - 2029

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