Legal action in rate fight

Source: Wangaratta Chronicle 21 Feb 09

St John’s considering appeal against council decision on village

Written by STEVEN BURKE.

THE St John’s Village board’s fight to keep its residents from paying municipal rates is far from over, with legal action being considered.

The village is still in shock over a split decision by Rural City of Wangaratta councillors, three votes to two, to impose rates on St John’s elderly residents.

Legal advice currently being sought by the St John’s board will decide whether that decision is challenged at a Victorian Civil and Administrative Tribunal (VCAT) hearing.

St John’s chief executive, Joe Caruso, said the decision to seek legal advice was made at a board meeting on Wednesday night.

"The board has requested a legal opinion in regards to our position and we will then be looking at challenging council’s decision through VCAT," he said.

Mr Caruso said he remained unconvinced council’s hands were tied and that there was no other option but to impose rates on the village.

He believes council does have the discretion not to apply rates under the Local Government Act, again referring to the example of aged care facilities in the Otway Shire.

"There are three facilities within that council that have been granted an exemption from paying rates," Mr Caruso said.

"They provide a three tiered level of care on a similar model to St John’s."

At the crux of the issue is St John’s argument that it is a charitable organisation and a care provider, and should therefore be exempt from rates.

"Our residents do not actually own their properties - what they have is a contract which gives them right of occupancy," Mr Caruso said.

Currently some 19 "terrace" units at St John’s are rated, while 75 new units are also set to incur rates.

But it is the potential rating of 31 of the original "self-care" units which has Mr Caruso most angry.

Council’s report presented at Tuesday night’s meeting states the units "may also be involved" and “it would appear the properties are all rateable under the terms of the Local Government Act”.