St John's Exemption a possibility

Minister, council both right:

rates must be imposed, then can waive for residents

Written by STEVEN BURKE. - Source: Wangaratta Chronicle

A COUNCIL exemption seems the most likely way St John’s Village residents can avoid paying municipal rates.

That’s the message from the office of Local Government Minister, Richard Wynne, who sought to clarify comments made to Ken Jasper (MLA, Murray Valley) last week.

The Rural City of Wangaratta will impose rates on St John’s Village residents in the 2008/09 financial year, after legal advice received by council advised the 125 units at St John’s are rateable, overturning a 1968 decision by the Shire of Wangaratta that units could not be rated.

Councillors were last month not given the option of blocking the decision, but simply voted to note the decision had been made by council officers, based on legal advice.

But comments from Mr Jasper last week threw council’s decision into question.

"Mr Wynne has again confirmed...that the decision on the rating of St John’s Village was a decision for the council," Mr Jasper said.

"Provisions give council discretion to waive or defer rates for individuals or by class of ratepayers on the basis of financial hardship."

A spokesman for Mr Wynne said yesterday that both the minister, and council, are right.

He said council had an obligation to apply rates to any rateable land.

"They’ve sought a legal opinion that advises them that the land is rateable," he said, and “council do have to act on that legal advice.”

The spokesperson said there were still options available to council under the Local Government Act, which allows them to exempt some properties from municipal rates.

"The Local Government Act defines what land is rateable and outlines exceptions where land is not rateable," he said.

"While I understand Wangaratta Rural City Council has sought a legal opinion which has recommended the residential units at St John’s Retirement Village should be rated, there are provisions available under the Act which give a council the discretion to waive or defer rates for individuals or by class of ratepayers on the basis of financial hardship."

St John’s board of management is still considering its legal advice to see if it will appeal against council’s decision to impose rates.