By Max Hatzoglou
A state government backflip on its decision to exempt certain social and affordable properties from council rates will save millions for council to spend elsewhere.
The proposed change would have meant that social and affordable housing would be exempt from council rates.
However on Tuesday 1 March the treasurer announced the policy would not proceed, overturning the original announcement made on February 18.
The original policy was put forward and planned to begin in July 2023, sparking concern for local governments across Melbourne.
Brimbank Mayor Jasmine Nguyen said she was pleased to hear the latest announcement.
“Brimbank council welcomes the recent state government announcement that the Andrews government would not proceed with introducing a rates exemption for social housing properties that would rip millions of much needed dollars out of local government budgets,” Councillor Nguyen said.
“A financial deficit of this magnitude would have had significant impacts on the ability of councils to continue to deliver services, and would also have passed on some costs to homebuyers.
Cr Nguyen credited the government for withdrawing the policy.
“We commend the government for listening to the community on this matter and taking the policy off the table,” she said.
“Brimbank certainly doesn’t want to see any future re-introduction of a rates exemption for social housing.
“Council will also seek clarification from the State Government about the future of a broader Planning Reform Agenda for Victoria and how it proposes to go about this.”
Brimbank councillors voted in favour of the motion put forward by Cr Luu with council set to write to the state government welcoming the decision and seeking clarification on future social and affordable housing policy initiatives.
Cr Luu said this decision was important for Brimbank as it deals with tackling homelessness.
“I would like to emphasize that we all acknowledge that an increase in social housing is vital in relieving homelessness and having housing options plays a critical role,” Cr Luu said.
“Social housing is clearly a state government responsibility.
“It should be supported and subsidised by the Victorian government, not just by ratepayers of each municipality.
“Again I would like to welcome the government’s decision not to continue with the proposal.”
