Launceston council looks at flat rate

‘‘Serious investigations’’ into a differential flat rate model have been conducted by Launceston aldermen, which have included information sessions with Brighton Council.

Brighton was threatened with legal action when it moved to introduce a flat rate about eight years ago, however its model has since been approved in legislation.

Brighton mayor Tony Foster said Launceston engaged their council to have modelling created for the city.

Launceston City Council general manager Robert Dobrzynski said the council re-adopted its annual assessed value policy for the 2016-17 financial year, but had explored different models for the future.

‘‘The council has spoken with representatives of Brighton Council and other councils and authorities about various different ratings models, but the council has no position on a future ratings model at this stage,’’ Mr Dobrzynski said.

Alderman Robin McKendrick said he had pursued a flat rate model for the past 18 months, and expected further discussion with the council in the coming months.

‘‘AAV is a wealth tax on a property, whereas with a flat rate everyone is treated on same rate – you can adjust that accordingly to make sure everybody gets the same service,’’ Alderman McKendrick said.

He said details were still being investigated, but that he believed a number of aldermen were open to the debate.

‘‘There have been serious discussions with Bright Council to get detail of how it could operate in our city – there is no reason, I believe, why it won’t work,’’ Alderman McKendrick said.

Cr Foster said the model took angst out of rate rises over and above CPI, and that Brighton had CPI increases for the past nine years.

‘‘You’ve got to divide up areas in Launceston, such as Ravenswood – there is a model of doing it where you ring fence certain areas, so they are not disadvantaged over others,’’ Cr Foster said.

Launceston mayor Albert van Zetten said Brighton’s suggestion, if the system was to be delivered, was to wait until the next revaluation of property in 2016-17.

‘‘My understanding of their discussion, when they came to our workshop, was that it was a better timing,’’ Alderman van Zetten said.

‘‘I’ve got to see the modelling yet; it wouldn’t change largely the rates we bring in, but it would distribute the rates differently. 

My point of view is 

that those in the Northern suburbs should 

not be significantly disadvantaged.’’

Deputy mayor Rob Soward said there was a lot of positive feedback regarding a flat rating system in Launceston.

‘‘I’m very excited about the opportunity; the information we got from Brighton sets us on a very, very good path moving forward with what we do for developing our rating systems,’’ Alderman Soward said.

‘‘The fact that we’re looking at it and working towards reviewing what we’re doing is terrific.’’

Aldermen Darren Alexander and Hugh McKenzie said they were open to any conversation that may mean the community may pay less in their rates.

Local Government Minister Peter Gutwein said each council was responsible for its own rating system, which was dictated by outlines in the Local Government Act.

‘‘[Those include] consultation with every household if considering average area rating [flat rates] as it can deliver winners and losers,’’ he said.