This is the personal blog of Ian Ker, who was Councillor for the South Ward of the Town of Vincent from 1995 to 2009. I have been a resident of this area since 1985. This blog was originally conceived as a way of letting residents of Vincent know what I have been doing and sharing thoughts on important issues. I can now use it to sound off about things that concern me.

If you want to contact me, my e-mail is still ian_ker@hotmail.com or post a comment on this blog.

To post a comment on this blog, select the individual post on which you wish to comment, by clicking on the title in the post or in the list to the left of the blog, and scroll down to the 'Post a Comment' box at the foot.

Search This Blog

Thursday, August 6, 2015

Col Pot's Potty Economics

Yet again, Colin Barnett shows he doesn't understand local government - not to mention having incredible cheek to lecture others on financial responsibility when he has presided over economic disaster, driven by his 'captain's picks' of infrastructure spending.

If the rates on an individual property go up by $600, as he instances, this is almost certainly due to either (a) the Valuer General revaluing properties (as is required every few years) and increasing the value of some by more than others or (b) the property being revalued as a result of improvements, additions or alterations.

In the former case, even if Council rate revenue were to remain the same, some properties would pay more and others less.

Looked at another way, the highest rate increase for 2015/16 is 8% (Victoria Park). For this to equate to $600, the previous rates payable must have been $7,500 - which implies a 'Gross Rental Value' (the basis on which rates are calculated) of just under $100,000. By comparison, the GRV of my house in Mt Lawley is about one-quarter of that - even the 8% rate increase would be $150 - not $600.

So it looks like the $600, if, indeed, it is a real figure and not just a figment of Col's imagination, is most likely largely the result of revaluation, for one reason or another, or the property is a commercial one not, as many people would have assumed, a residential one (ie the case facing most people). Of course, $600 is important to business as well as to households, but Col shouldn't be misleading us into thinking about how $600 would affect us as individuals.

No comments:

Post a Comment