Wineries and accommodation providers concerned as Denmark Council set to consider split rating system

A change in the way the Shire of Denmark values 18 properties for the purposes of rate collection will be considered by the council on Tuesday. The change to a split rating system would be applied to rural properties that “contain distinct non-rural commercial uses” and would raise more than $25,000 more in rates for the Shire. A report prepared for the council shows that rates would rise for 16 of the 18 properties. Rates for one William Bay property — believed by the Advertiser to be William Bay Chalets — would climb by more than $7700, an increase of 141 per cent. A 146 per cent would be applied to a Scotsdale winery which also operates a cellar door and restaurant, and a Bow Bridge accommodation provider which runs two chalets and campgrounds would see its rates climb by 129 per cent. The report notes that the “phasing in” should be considered for the nine properties which would receive an increase in rates of over 20 per cent. The proposed changes have drawn criticism in the form of formal submissions from seven representatives of the properties that would be affected. A submission from Forest Hill Winery said the “vast majority of the property is used for rural purposes including growing grapes and running cattle with very little area used for other activities.” “The small balance of our property that you could classify as non-rural is just the restaurant (Pepper and Salt) and cellar door which are essentially tasting opportunities of local products,” the submission said. The submission from Old Kent River Wines said it was a case of the Shire saying “please sir can I have some more.” “The proposed rating increases over the last two years seriously discriminate against rural property owners who have tried to establish a commercial activity on their property to supplement their rural income,” it said.< A submission from Singlefile said it supported the Shire’s objectives, but believed there was “unfairness and discrimination in the way the so-called differential rating has been applied.” “Furthermore, the manner of consultation of the 70 per cent increase in the proposed rate was neither timely nor transparent,” it said. Paul Nelson Wines made a submission saying it did not open its cellar door to the public “on any regular basis” and only did so by appointment. Submissions from The Lakehouse and the Castelli Group both made formal objections, while NewFarm queried whether rate rises would continue to climb or remain at the stated figure “subject to standard rises by CPI.” The proposed changes are part of stage three of the Shire’s ongoing rating review, which started with stage one in November 2019. The move to adopt a split and spot rating method for rural properties containing additional commercial use was endorsed at the shire’s June 2021 ordinary council meeting, which initiated stage three of the review process. Recommendations in the report suggest council should consider the submissions of the affected property owners, and request the Local Government Minister approve the change of method of valuation for the 18 properties with effect from July 1 next year.