Korumburra research

A farming shire changes to site value.

In 1963, the farmers of Korumburra decided to have their council collect rates under a new system. The farmers opted to cease using the old NAV system, which was penalising their improvements, and continue for the future under site rating. The effect on their community can be seen from the charts and graphs.

Building approvals by value

House and flat approvals by quantity House and flat approvals by value

Historically, the changeover was of some interest. The Korumburra shire council fought strongly against the change. This was despite the wishes of the majority of ratepayers. It was noted at the time, that after the change, several of the rural riding councillors decided to take advantage of site rating and avail themselves of the now available differential farm rate. Such use of course was never intended in these circumstances. The farm rate, under site rating, was designed for those farming areas where city growth into outlying areas reflected values ahead, to land still being used for farming. A genuine problem, with an easy solution under site rating, still relevant today. Never-the-less, it was alleged that " our rural riding councillors may be regarded as out of bounds in thus arranging monetary benefits by way of the farm rate to their rural ridings." 1

In addition to the rating change, the water and sewerage rates levied by the Water and Sewerage Trusts were also changed to site value. Since that date, the increase in private building construction has been significant. The Korumburra farmers are aware of this of course. It helped their community to grow and prosper, and keep local government rates off their homes, farm bulidings, fences and other improvemnts.

1.Frank Hawtin,President,Korumburra Shire Rating Association in a letter to the Korumburra times,June6,1968.