Bass Coast farmers are the big winners in the rates review. Photo: Linda Cuttriss
By Catherine Watson
BASS Coast Shire Council has endorsed a sweeping overhaul of its rating structure, delivering permanent rate cuts for farmers, higher charges for vacant landowners, and new financial relief for pensioners.
The changes will take effect from 1 July 2026 as part of the 2026–27 Budget.
The Rating Strategy Review – the first comprehensive update since 2016 – follows extensive community consultation and aims to modernise the shire’s approach to rates, improve equity and strengthen financial sustainability.
BASS Coast Shire Council has endorsed a sweeping overhaul of its rating structure, delivering permanent rate cuts for farmers, higher charges for vacant landowners, and new financial relief for pensioners.
The changes will take effect from 1 July 2026 as part of the 2026–27 Budget.
The Rating Strategy Review – the first comprehensive update since 2016 – follows extensive community consultation and aims to modernise the shire’s approach to rates, improve equity and strengthen financial sustainability.
Under the plan adopted at Wednesday's council meeting, the farmland differential rate will drop from 80 per cent to 65 per cent, providing what the report describes as a “guaranteed, permanent rate reduction for the farming sector”.
The original recommendation from council officers was for the farm differential to drop from 80 to 70 per cent, but Cr Jan Thompson argued that farmers were doing it tough and proposed an alternative motion dropping it to 65 per cent. The motion won support from most of her colleagues.
Vacant land owners, however, will see their differential rise sharply from 150 per cent to 200 per cent in a move designed to encourage development and boost housing supply.
Developed residential, commercial and industrial properties will remain at the standard 100 per cent rate.
The changes coincide with a major reform of the Rural Land Management Rebate (RLMR), which has provided up to $675,000 annually to farmers for environmental works. Council says many of the activities funded through the rebate are now required under state law or supported by other agencies, and that the program has become costly and administratively burdensome.
Instead, a new environmental program will be developed through the annual budget process, targeting “enhanced biodiversity and natural asset protection”.
While many farmers opposed the removal of the RLMR, Council says the final recommendation balances environmental outcomes, fairness, and long‑term financial sustainability. It is expected to save the council millions over the next decade.
In response to strong community support, the council will introduce a 20 per cent waste charge rebate for eligible pensioners, providing around $123 in annual savings to more than 2000 households. The rebate will be cost‑neutral, funded by a $22 increase to the waste charge for other ratepayers.
First‑time homeowners will be protected from the 50 per cent increase in the vacant land rate for up to two years, subject to proof of eligibility. Council says the measure is intended to support new entrants to the housing market during construction.
The review attracted 89 survey responses, nine written submissions and more than 900 online visitors. A majority of respondents supported both a higher vacant land differential and a lower farm differential, with 57 per cent preferring the most aggressive option presented during consultation.
Although the total rates collected will not change, contributions will shift between property classes. Based on 2025–26 figures:
The council argues the new structure better reflects service usage, supports economic development, and aligns with sector best practice.
The original recommendation from council officers was for the farm differential to drop from 80 to 70 per cent, but Cr Jan Thompson argued that farmers were doing it tough and proposed an alternative motion dropping it to 65 per cent. The motion won support from most of her colleagues.
Vacant land owners, however, will see their differential rise sharply from 150 per cent to 200 per cent in a move designed to encourage development and boost housing supply.
Developed residential, commercial and industrial properties will remain at the standard 100 per cent rate.
The changes coincide with a major reform of the Rural Land Management Rebate (RLMR), which has provided up to $675,000 annually to farmers for environmental works. Council says many of the activities funded through the rebate are now required under state law or supported by other agencies, and that the program has become costly and administratively burdensome.
Instead, a new environmental program will be developed through the annual budget process, targeting “enhanced biodiversity and natural asset protection”.
While many farmers opposed the removal of the RLMR, Council says the final recommendation balances environmental outcomes, fairness, and long‑term financial sustainability. It is expected to save the council millions over the next decade.
In response to strong community support, the council will introduce a 20 per cent waste charge rebate for eligible pensioners, providing around $123 in annual savings to more than 2000 households. The rebate will be cost‑neutral, funded by a $22 increase to the waste charge for other ratepayers.
First‑time homeowners will be protected from the 50 per cent increase in the vacant land rate for up to two years, subject to proof of eligibility. Council says the measure is intended to support new entrants to the housing market during construction.
The review attracted 89 survey responses, nine written submissions and more than 900 online visitors. A majority of respondents supported both a higher vacant land differential and a lower farm differential, with 57 per cent preferring the most aggressive option presented during consultation.
Although the total rates collected will not change, contributions will shift between property classes. Based on 2025–26 figures:
- Farmland contributions would fall by $556,000
- Vacant land contributions would rise by $1.45 million
- Developed land contributions would decrease slightly
The council argues the new structure better reflects service usage, supports economic development, and aligns with sector best practice.