Fairer rates for people with no Council waste collection

On 30 August 2016 Council supported my recommendation to resolve in principle to introduce a separate waste and environmental charge as part of the annual rates bill.

This is to address the growing unfairness where more than 1,000 residential ratepayers in Monash are currently paying for waste collection services through their general rates which they do not receive.

Unlike most other councils, Monash Council does not have a separate waste charge.  A waste charge is levied only on those ratepayers who receive a waste collection service from their council and it distributes the costs of providing that service across those ratepayers.  Currently there are only five other councils which do not have a separate waste charge.

There are 1,666 residential assessments in Monash which do not receive waste collection services from Council.  These are typically apartment or multi-unit complexes where a condition of the original planning permit approved by Council was that the applicable owners corporation would be responsible for arranging the waste collection services for the residents living in the complex.

It is clearly unfair that ratepayers in these situations – about 2.5% of all Monash residential ratepayers – are contributing through their annual rates bill towards the costs of a service which they do not receive from Council while also having to pay increased owners corporation fees to fund the waste collection for their property coordinated by their owners corporation.

My changes aim to address this fundamental unfairness by following the lead of the vast majority of Victorian councils in moving to establish a separate waste charge so that those ratepayers who do not receive waste services do not have to pay for it.

It is important to note that there will be no windfall gain to Council from introducing a waste and environmental charge as rate revenue will be reduced by an equivalent amount.

A separate waste charge will be investigated further by Council officers as part of the development of the new Waste Management Strategy.  Further investigation will be undertaken to identify the best model for recovering costs with minimal impact on the community.  Options could include:

1. an Environmental Charge for all properties to cover municipal wide services e.g. street sweeping; and
2. a separate waste charge to every property depending on the services provided.

Council will consider further the optimal timing for the commencement of a separate charge and whether it is 2017/18 or a subsequent rating year.  However, it is my strong view that it is desirable that the separate charge be introduced as soon as possible to overcome the current unfairness to ratepayers who do not receive waste collection services from Council.