THE state government has ignored advice to force councils to change to a capital value rating system by 2016 and will instead opt to introduce the system over an indefinite period.
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This has drawn the ire of the Tasmanian Ratepayers Association's spokesman Lionel Morrell, who yesterday said the review had been inconclusive on its main objective so should be viewed as a failure.
The review was commissioned in December 2009 by then-minister Jim Cox and concluded in May when the government endorsed a 127-page steering committee report.
Among the reports recommendations was a valuation cycle of two years for land valuation and four years for capital valuations.
The state's Local Government Division director Phillip Hoysted in a letter this week advised those involved in the review that Minister Bryan Green had accepted all the report's recommendations but one.
He said it had been decided that major reform requiring a transition to a capital value system should occur over a longer period of time, meaning there were no immediate proposals to cease AAV assessments and this base would continue to be available to councils.
Mr Morrell said the opportunity for reform had been missed.
"We've wasted all this money and all this consultation time and it's still up to the councils to change (the system)," he said.
"Councils have always been able to change to whatever system they choose."
Under law, there are three methods upon which the council can charge rates on: annual assessed value, capital value and flat-rate.
According to Launceston City Council modelling, a capital value rating system over AAV for city ratepayers would see homeowners account for three-quarters of the council's overall rates revenue budget, above the current 63 per cent, but reduce the load for commercial property owners.
