Hume council will consult with the community next year about adopting differential property rates in the 2027-28 financial year.
At the 8 December council meeting, Cr Sam Misho said differential rates would address equity issues.
“Residential property rates should not be calculated on the same basis as that of commercial and industrial properties,” Cr Misho said.
Cr Misho said as at June 30, most of the $57 million in overdue rates were from residential properties, not commercial or industrial properties.
“There is much more financial hardship among residential properties because you would have single parents, pensioners, or one income earning partner,” he said.
“Residential properties are not income producing, while commercial properties are… and they don’t use the infrastructure, facilities and amenities in the same way.”
Cr Misho said, if adopted, differential rates would replace uniform rates, and change the way rates are levied on different types of property.
According to the ministerial guidelines, differential rates can apply to lands including those that are residential, farm, commercial, industrial, vacant, and recreational as well as retirement villages.
Cr Naim Kurt said Hume is one of very few councils in Victoria which still uses a flat property rate.
“Companies within our community that produce billions of dollars … pay the same rate in the dollar as a one-bedroom unit in Tullamarine or Broadmeadows,” Cr Kurt said.
Cr Kurt said he hopes the rates will discourage vacant land holders, not businesses who provide jobs.
“Additional time to undertake community engagement and see how we can perfect this… is needed.”
Cr Daniel English and Cr Jim Overend both said they were concerned about the impact on small businesses, but welcomed community engagement.
“We have to look after our really small businesses who are struggling to make ends meet, they do hire a lot of people from Hume … so I’m glad we are … not rushing into it,” Cr English said.
The council will undertake community consultation in 2026 before deciding whether to introduce differential rates in 2027-28.
