Rate hikes relatively new
It was a rare thing indeed for councils to seek above rate peg increases leading up to the 2000s.
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This was partly due to the closing out fact the state government let it be known that it was a no go zone and partly due to desire by responsible councillors to live within the means of their community. It was also a time when local government employee costs were constrained which allowed the system to work productively to build and repair our infrastructure.
The big change came in the early 2000s when the Minister of Local Government released the brake on rate increases and the great game began. Council submissions for above rate peg increases began to pile up at the Minister’s door and given this more benign regime our rates were on the rise. This also coincided with the more than substantial increases to local government employee wages and salaries.
Shoalhaven City Council was not slow on the uptake and out went the “frugal responsible approach” and in came the so called “responsible spending approach” to managing council affairs. So our council piled in with the rest and loaded up the system with large rate hikes. These were numerous in the decade from 2004/05 to 2013/14 and our rates rose massively in this period.
Over this decade the cost of living (CPI) increase was a reasonably modest 30 per cent while the rate peg allowance came in slightly above at 39 per cent to give councils some real increases. Our council however was granted above rate peg increases that jumped the rates on a constant base by 60 per cent or double the CPI rate.
Now during this decade local government employee wages and salaries were also rising at well above the CPI. At our council these increases came in at about 60 per cent, which nicely matched the rates increases. As our total general rates are in line with employee costs one offset the other.
P. Dean, Cambewarra
RATES AND RENTS
Having been involved in the real estate industry for some 25 years and at all levels, I’m driven to call into question Cr Guile’s hysterical assertion that an increase in rates will convert to a rise in rents.
Council rates, along with other overheads such as insurance, maintenance, strata levies (if applicable), management and accounting fees and so on, all go into the mix of tax deductible expenses relating to an investment property.
There are lease conditions as well as statutory limitations that come into play before a rent increase can be implemented and even then it will only happen if the rental market can bear it.
Generally, investment in residential real estate is not driven by return but rather by the capital gains achieved over time and the assistance given by the negative gearing provisions in reducing exposure to income tax at the same time as you accumulate an asset.
Cr J. Levett, Old Erowal Bay
Dutton way out of line
I am appalled at the recent statements expressed by Peter Dutton our federal Immigration Minister and head Border Force "tough guy". He blames Malcolm Fraser for allowing Lebanese Muslims into our country where after a few generations Mr Dutton believes they have become terrorists.
The deafening silence from our Prime Minister, other senior ministers and Liberal backbenchers seems to indicate they all agree with Mr Dutton.
In recent years we have had two murders in Sussex Inlet with no Lebanese arrested.
In recent years we have had two murders in Sussex Inlet with no Lebanese arrested. The local jail is bursting at the seams with few Lebanese inmates held there. It's seems the days of treating new arrivals badly and calling them names has returned.
Shame on you Mr Dutton and Ann Sudmalis for not speaking out for the thousands of Lebanese both Christian, Muslim and other religions who call Australia home.