1 Aug 2018
Even though much of the state has been or remains drought-declared, agriculture’s $20 billion contribution to the Queensland economy in 2017-18 was an increase of 11% over the 5-year average. The state’s 24,000 farm businesses are not only central to feeding, clothing and providing amenity to Queenslanders, Australians and many others around the world, they are also responsible for the direct employment of over 100,000 people. The sustainable growth of agriculture within Queensland provides various opportunities for rural and regional areas to benefit from investment. However, to achieve such benefits, barriers to productivity and profitability must be overcome.
The disparity between Queensland’s farmland values and the associated local government rates is one such example. While the median price of farmland across the country grew by 7.1% in 2017, it decreased by 2.8% (to $4,051/ha) in Queensland. Despite this, local governments continue to increase rates for farming businesses.
Cane growers and other rural landholders in Mackay did not receive any rate relief in the recent Regional Council budget after the proposed rate banding system for agricultural producers was voted down. The system would have benefited more than 2,250 agricultural land holders by creating a more equitable distribution of cost load among ratepayers.
In 2016, the Scenic Rim Regional Council reviewed rates for ‘intensive industrial and rural industries’ resulting in significant financial increases approaching 110% without any prior consultation or notification. One farm business had it rates increased from $16,000 to $71,000 over 2 years – an increase of more than 440%.
QFF appreciates that local government budgets are under pressure and own-source revenue (revenue from rates, fees and services) now accounts for three quarters of total revenue, but some of the current actions are unconscionable. Rates charges and other council budget processes must be transparent. There must be a reasonable level of predictability in the rates levied on parcels of land and compliance with the principles set out in the State Government’s Guideline on Equity and Fairness in Rating for Queensland Local Governments should be compulsory.
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