Flat rating model could be ready for approval by 2016-17

Impacts, outlines and modelling for a flexible flat rate-based structure will be prepared by council staff, and would be implemented that year if aldermen vote to accept it.

The proposal tabled by Alderman Ted Sands came from a background of frustration, held by many aldermen, regarding the council’s lack of movement in finding a new rating structure.

The council  uses modelling based on annual assessed value, which will be phased out in the coming years.

Alderman Sands’ motion asked that a differential rating system was explored for 2016-17, and provide a rating model to identify the impact of increasing the fixed rate component of the general rate in preparation for 2016-17.

The motion also asked that the impact of adopting an average area rate, a variation on the flat rate model, across residential properties based on the non-use of land and current AAV valuation was prepared for 2017-18.

Alderman Sands also wrote that ‘‘Council directs the General Manager to begin the process now of the adoption to an average area rate due to the lengthy lead time which is required by local government’’.

After debate and some questioning of the motion – as well as a five minute break to confer – Alderman Janie Finlay opted to amend the proposal which would delete the last point and make minor alterations to the others.

All aldermen present, excluding Emma Williams and Karena Stojansek, approved the motion.

Alderman Sands said many hours of conferring with Brighton Council, the first to introduce the flat based structure, meant Launceston had significant background on how any change may be delivered.

Although some houses would lose through the new rating structure, by means of initial rate rises, the alderman agreed that change was needed and that, if it did not significantly impact lower socioeconomic families, it could bring a more equitable system.