Time up for varied rates that aid social policy

DIFFERENTIAL rates for Brimbank gaming venues could be banned if the state government approves guidelines designed to reduce the ability of councils to charge varying rates.

Local Government Minister Jeanette Powell said the government planned to introduce new differential rating rules to restore “simplicity and consistency” to the way councils charge residents and business owners.

She said the move was sparked by growing community concern about the use of differential rates by some councils.

“While some councils charge no differential rates, others have at least 10 different rating categories,” Ms Powell said.

“Several councils have employed significant creativity and stretched their differential rates powers to pursue social policy objectives.”

As reported by the Weekly, Brimbank Council last year introduced a differential rate for gaming venues in a move aimed at funding programs to help problem gamblers.

The current rate is twice that levied on commercial and industrial properties.

Brimbank has Victoria’s highest level of gambling losses.

More than $139 million was lost on electronic gaming machines in 2010-11.

But Australian Hotels Association CEO Brian Kearney accused the council of “opportunistic triple-dipping”.

“I can’t understand the rationale for that when gaming venues already pay considerable taxation to the state government,” he said.

“Charging higher rates is taking advantage of the venue owners and we are also seeing local governments attempting a degree of social engineering, which is not equitable or fair.”

Brimbank’s general manger of corporate services Doris Cunningham said the council would review its rating strategy as part of the annual budget process.

Ms Powell said guidelines would be finalised before councils drafted their budgets for 2013-14. Comments on the draft guidelines can be made until February 28.

More details: dpcd.vic.gov.au