Sleight of Hand with Rates

Just like the great rock n roll swindle-councillors of Shoalhaven city are set to give rate payers a three cup trick.

Just one week before Clrs Watson and Guile set out to give ratepayers a 'freeze' in rates for the coming financial year instead of the IPART deemed rate of 3.6% increase. Guile and Watson claimed to be the champions of the working class- when I doubt they understand the working class struggle at all- but that's a whole different story to this.

The rate story is sometimes complex- so I'm going to attempt to do this a simple way- please drop me a comment if you get it or not.

So all Shoalhaven land is valued according to its unimproved value the valuer general kindly sends us those blue letters telling us home much our land is worth.

Land of course is categorised into residential, residential non urban. farmland. farmland dairy,business nowra business ulladulla, business permit, business.

Each category gives Council a percentage of the total value of the rates.

Rates are split in half with the general contribution being the same for all rate payers, this is calculated by halving the maximum amount of rates council will receive and dividing it by the number of assessments

e.g 250 assessments in Shoalhaven total amount of rates to be charged $1000000.

1000000 / by 2 = 500,0000

500000 / 250 = $2000 per assesment as the flat portion

The other $500,000 is split up roughly according to land value categories Shoalhaven charges dairy farm land less cause its a pretty tough gig and who wants to milk cows at 4am? The residents pay roughly 90% of the remaining $500,000 but the business people pay more for their portion of the rates because they get special deals with the extra they pay.

In Nowra business they contribute to advertising the whole business area and to a tourism levy to help keep their business ticking over with the extra visitors the tourism levy generates.

Guile and Watson want to redistribute some of the financial burden of the business sector rates onto residential- so here in lies the sleight of hand. Attempt to get a rate freeze while meanwhile redistributing from the business sector who get special programs to encourage business.

So I don't support a rate freeze it leaves a $1.7mill hole in the budget and no one is up for cutting services or even donations- a whopping $650 000 of rates was spent last year on a variety of charities including, fireworks, business awards, relay for life, rate subsidies for community groups hiring halls, donations to schools for excellent students, Illawarra institute of sport and so on.

The longer you leave a whole the worse the pain is in the future (just ask anyone who has taken a house loan repayment holiday)

My annual rate payment is around $1100 ( or it will be with a 3.6% rise) and I think I get quite good value for that- hassle free rubbish collection, especially in the streets and parks, a great friendly library with heaps of books and DVDs I don't have to buy for me or the kids, a subsidised swimming pool- who could afford up to $30 a swim the real cost at some of the pools! the roads I travel on are fair to good, I wish there were more footpaths, I'm glad that Council cares for the parks and gardens and contributes to a feeling of community pride, I wish we didn't have to pay for land and environment court challenges, happy to pay for ranger services who keep some of the domestic stuff ship shape- so all in all I may groan about paying rates but I'm fairly satisfied with the services I get.

Just like income tax-I might moan when I complete the quarterly BAS statement and send of the Pay as you go tax installment but really its pretty good value when I get a mostly free education for my kids, hospital, supported dental for young people, law and order, Aus Aid, pensions for those who need them, PBS prescriptions, and so on.

We don't have too much to gripe about in this country- sure things are a bit tough right now, but most of us aren't homeless, have running water and sanitation, a roof over our heads and hopefully a bit of love at our hearths- maybe its our expectations that are a bit high and that credit card debt for a new TV wasn't really worth the monthly payments and massive interest rates, or that car loan for a flashier car if we dig deep there is always something we can do better