Ratepayers claim proposed 4.9 per cent rise puts unfair strain on struggling businesses, residents

Ratepayers have expressed dismay at a proposed 4.9 per cent rates rise, voicing concerns for the local business sector as well as questioning what’s being done to rein in spending.

Residents including Rotarian and chartered accountant Julien Sanderson, and former Chamber of Commerce president Pierre Every, said it was too easy for the Shire of Augusta-Margaret River to bump up rates every year rather than look at their own efficiencies.

The pair – who were backed by a contingent of ratepayers who echoed those views to the Times – said no business could simply lift prices every year to make ends meet.

Mr Sanderson said any money lost from a lower 3.5 per cent rise was already off-set on Shire underspending on employee costs.

“I’m appalled at the proposed rates increase of 4.9 per cent which flies in the face of the Government and Reserve Bank asking for restraint,” he said.

“The article in the Times says the rates increase ‘equates to $2 per week for the average household,’ but this is not so for businesses who are already, in many instances, doing it tough.

“Their increase will be a lot more than $2 per week.”

Mr Every said he had seen inefficient spending first-hand as a board member of Arts Margaret River when the Shire took over management of the Heart.

“The easy way to manage finances when you are in the public sector is just to increase rates by 4.9 per cent plus there is a massive increase in Shire income from new homes,” Mr Every said.

“How long would a business last if they just kept increasing the price of their goods or services?

“My request is that the Shire tell the ratepayers what specific actions are being taken to reduce expenditure and improve productivity.”

Councillors were due to consider the ratings increase at next week’s meeting after advertising the proposed lift for public comment.

In approving the rate for advertising, elected members voiced the need to keep up with spiralling costs despite a record 3.4 per cent growth in the rates base thanks to the region’s property boom.

Acting shire chief executive Nick Logan defended the scope of proposed ratings increases.

“Our 2024-25 budget has carefully considered where we can save on expenditure and subsidise projects, to keep rate increases at a minimum and ensure we can fund all the services our community deserves and expects,” he said.

“Our proposed rate increase of 4.9 per cent equates to $2 a week for the average household, and is lower than the 7 per cent increase being considered in Busselton, Bunbury, and Harvey, as well as the 5.5 per cent increase already passed in Dardanup.”

Margaret River Business Network chief Annie McFie backed the concerns about pressure on small businesses.

“Costs for businesses are soaring and we are seeing unpreceded business insolvencies in 2024,” she said.

“While the proposed rate rise alone may not seem significant it is compounded by several other rising costs including the recently announced 3.75 per cent increase in wages in 2024, this follows an increase of 5.75 per cent in 2023.

“It is important that additional costs to business are not viewed in a vacuum but are considered in a landscape where businesses are currently being slogged with rising costs at every turn.”

Ms McFie welcomed changes proposed by new councillor Melissa D’Ath, a previous MRBN president, to waive instalment charges on part-payment of rates.