In June 2023, I spoke at a Council meeting about our community coming out of Covid, and how it was then dealing with difficult financial pressures including increasing mortgage and rental costs due to the RBA delivering10 consecutive rate rises, and this was impacting their capacity to pay their loans alongside of Council rates.
Unfortunately, the cost of living has got worse since June of last year with property owners or anyone with a loan having now endured not 10 but 13 consecutive rate rises.
In Victoria, amidst this economic turmoil, one sector which is thriving: is that of insolvencies. We cannot assume that all is rosy and thriving in the City of Port Phillip, where we may believe that debt-ridden residents and business owners have more to give.
With the skyrocketing costs of living essentials, it is careless to entertain the notion of taxing our constituents’ higher rates, again. This applies to both homeowners and renters alike. If rates go up, then any increase is passed on by landlords to renters. We had a speaker, a landlord, last June saying this message.
All residents are face rising costs of food, car fuel, education, medical support, household utilities and multiple insurance premiums typically increasing by up to 25%.
At this week’s Port Phillip Business Advisory Group meeting, some of those who attended spoke of customers:
- More likely to visit eateries charging cheaper meals and cheaper drinks and also customers are going out less frequently.
- Also, while a few new businesses are opening, there is concern that more are closing due to increased state and excise taxes.
It was highlighted, that three businesses recently closed in Clarendon St.
- There are the yearly high lights such as the St Kilda Festival which is free and is underpinned by the ratepayers and there is also the Australia Grand Prix, which do provide a sugar hit to the local economy, but businesses are suffering on our high streets.
These anecdotes are a few examples of the consequences of the compounding cost of living. There has been reported by the Australian Bureau of Statistics, Nov 2023 a collapse in disposable income, its largest ever decline this last financial year.
Residents are tightening their belts, and so we should look to council to do the same.
Because of the compounding impact of the cost of living including growing Council rates, we must diligently seek savings within Council budgets to alleviate the burdens of unnecessary spending during these still challenging economic times, as we also reside in the highest taxing state in Australia.
Let us not push our constituents to the brink of financial peril.
Our focus should be on easing the strain on households during these rough economic times, not exacerbating it.
There are those who seem to believe that we can simply ask for more from our struggling residents.
Any increase in rates is simply not the equivalent to the cost of another copy of coffee on top of existing high rates, as have been vocalised in a past meeting.
Some residents have seen rate rises of between 10 to 30% in their council rates.
There are also some who advocate for agendas that benefits a few at the expense of many. Council spending on such endeavours does not always line up with the needs of homeowners, who just ask for reliable, efficient and consistent Council services.
With the never-ending cost of living pressures, homeowners try to prioritize their spending, with rates and daily costs taking precedence. Council resources should be not directed towards areas of lesser concern for homeowners which they see is outside the remit of Council. Unless addressed, the burden of rates increases.
Implementing a rate freeze of 1.6% this year will have minimal impact on the ongoing annual Council budget of $250M. If not voted up, it will elevate further distress within our community.
The recent Suicide Prevention Australia Community Tracker reveals alarming increases in living distress among full-time workers and families, particularly amidst rising costs of living and mounting debt.
In light of these challenges, it is incumbent upon us to act swiftly to ease the financial and mental distress faced by our residents.
We must fulfill our duty to serve the community, not pursue political agendas at their expense.
Therefore, I wholeheartedly support the motion for a rates freeze.
