Council supports current rates system against ‘Robin Hood in reverse’

Leichhardt Council has moved to reaffirm its support for the existing rates system, in a pre-emptive move against “expectations” of a cut for wealthy landowners in Birchgrove.

Labor Councillor Darcy Byrne moved a motion at February Council meeting, which called on Council to restate its support for the current rates system and “rule out changing to a base rate system” or any other system that would see rates raised for owners of lower-valued properties, while reducing rates for owners of higher-valued ones. The motion was seconded by Greens Councillor Cassi Plate.

“There seems to be a concerted campaign on behalf of the wealthiest landowners in Birchgrove, tacitly supported by some Balmain councillors, to cut rates for very rich people,” Cr Byrne said. “Their plan would see rates increase for most residents by up to $270 while cutting rates for the wealthiest landowners by $6,000.”

“This proposal is Robin Hood in reverse.”

Cr Byrne said a report prepared by Council staff showed there was a correlation between high land values and high incomes, and low land values and low incomes. “I think it’s really important we don’t give campaigners in the Birchgrove precinct any expectation that this should come about,” he said. “I don’t support that [outcome] as a matter of principle – at the very least I think we should maintain what we currently have.”

However, the proposal was strongly opposed by Birrabirragal/Balmain Ward councillors, Liberal Gordon Weiss and independent John Stamolis. “We have a process through the budget and parking taskforce… and I don’t think we should rush into a knee-jerk reaction in the name of ‘social justice’”, Cr Weiss said during a heated debate. “Some residents of Birchgrove did request that we look into the system, so I think we owe it to them to do so.”

He also added that all current low rate payers would be hit with a large rate increase in two years’ time, as rates had been normalised and “everything at the lower end is catching up quickly.”

Cr Stamolis, meanwhile, cited concerns that rates were being affected by the change in wealth distribution. “When I doorknocked during the last election, elderly retirees were paying, in some cases, four times what investment bankers were paying,” he said. “Someone who owns a $680,000 home is paying four times the rate of someone in a multi-million dollar property. Hundreds of investors walk in and pay four times less.”

Mayor Jamie Parker cited concerns over the large differential – 26 times – between the lowest-charged rate payers in the LGA and those paying the most, but nevertheless broadly supported Cr Byrne’s proposal.