Council has resolved by a majority on 12 June to request an investigation by Council staff about whether it’s possible to increase rates for property investors who own two or more residential properties in Merri-bek, and decrease rates for other ratepayers.   

Council staff have previously advised it is very unlikely that it is feasible to apply a differential rate for property investors who have more than one residential property in Merri-bek. This is due to strict Victorian legislation and Ministerial Guidelines setting out how local government can charge rates and how differential rates may be applied. As the first part of the investigation, Council will seek legal advice as to whether the proposal can legally be implemented.  

In the event that legal advice shows there are legal ways for the proposed differential rates to be implemented, this would require careful consideration and analysis. This would include investigation of potential implications for different groups of ratepayers, and investigation of how to avoid unintended consequences. Council staff initial considerations have also indicated it is unlikely that doubling the rates charged to property investors with two or more properties would fund the halving of rates for owner-occupiers, commercial and industrial ratepayers. All of this will be subject to further investigation as part of preparing the report back to Council. 

The further report is expected to be considered and debated by Council in August or September 2024, although if complex investigations are required the report may be presented at a later date.