Lies, Damn Lies and Minister's Arithmetic

http://www.abc.net.au/local/stories/2014/06/11/4023305.htm?site=greatsouthern

It has been pointed out to me that the Minister for Local Government, Tony (Homer) Simpson, might share atrocious arithmetical ability as well as a surname with his TV alter ego.

The Minister is reported as saying: "For five hundred houses in Yallingup, a one per cent increase doesn't raise a lot of money, "but over 100,000 properties, a one per cent increase would raise over $100m".

Wow! If a 1% rate increase can raise $100 million from 100,000 properties that is equivalent to $1000 each.  I wonder what their normal rate is?

If he is talking 1% of GRV, i.e. 1 cent in the dollar, then the average GRV must be $100,000 - nearly six times the GRV for my house in the City of Vincent.

The GRV for my large house in prime position in Mt Lawley opposite Hyde Park is $17,680. The 'typical' value used in the City of Vincent Budget for comparison purposes with other local governments is $21,000. Is there anywhere in the metropolitan area that has typical or average GRV of $100,000?

Of course he might be talking about a 1% increase in payable rates which means the average rate for whatever area has these 100,000 properties is $100,000 a year - eighty times what I pay on my house in the City of Vincent.*

Incidentally, Vincent's rates are the 8th lowest in the metropolitan area, after allowing for the fact that it does not have a separate rubbish levy as most other Councils do - so why does the Minister think Vincent is so inefficient that it should be abolished?

* This para amended 13th June 2014, from '$10,000 a year' and 'eight times'. This is one of those cases where the correct value is so far from what might seem reasonable that the error looked reasonable. In my defence - at least I checked. It seems no one had the nouse to check Homer's figures.