MEMBER for Mount Gambier Troy Bell has warned ratepayers will foot an $820,000 bill in council rates if Mount Gambier’s Housing Trust stock is offloaded by the State Government.
The independent MP said council may be forced to increase rates to cover a shortfall of more than $800,000 if Mount Gambier’s 1100 Housing Trust properties are handed over to non-profit organisations.
As part of the State Government’s Renewing Our Streets and Suburbs Initiative, approximately 5000 Housing Trust homes have been transferred to community housing providers in three rounds.
Upon transfer of the houses, the State Government will no longer pay to support them and the properties will become eligible for Commonwealth funding.
Under state legislation, community housing providers are entitled to a 75pc rebate on council rates on the grounds they are a community service.
Although the main initiative has been completed, an additional 48 properties will be transferred next month, with Mr Bell raising concerns about the future of the Mount Gambier stock.
“The State Government has announced that Housing Trust homes will continue to be handed over to community housing organisations, resulting in council being required, by law, to provide a 75pc rebate on rates for these properties,” he said.
“This would mean in Mount Gambier, where there are 1200 Housing Trust homes, the city council will be out of pocket by close to $1m annually.
“Such a reduction in revenue will need to be paid for by the remaining ratepayers or the only other alternative will be a reduction in the services council provides.”
The Local Government (Accountability Framework) Amendment Act introduced an expanded definition of bodies eligible for the community services rebate to include registered housing associations.
The bill, introduced to the Legislative Council in 2009 by the then State/Local Government and Government Enterprises Minister Gail Gago, was supported by then State Liberal leader David Ridgway.
While Mr Ridgway acknowledged warnings by the Local Government Association about the potential negative impact on councils, the Liberal Party ultimately voted in favour of the amendment.
Mr Bell called on the Liberal Party to change its position on this matter and support him in addressing this imminent increase in the cost of living for Mount Gambier ratepayers.
“We need a strong commitment from the Liberal Party to support an amendment to the Local Government Act to ensure our ratepayers are not adversely affected,” he said.
If re-elected, Mr Bell committed to introducing legislation to address the issue when parliament returns.
“I think non-government organisations have a lot to offer and I support that aspect of the transfer,” he said.
“However if other ratepayers have to have a rate increase to cover the rebate it is not a good outcome for the wider community.”
