By JESSE GRAHAM
A COMMUNITY group has called on the council to refund carbon tax cash collected through rate rises in the last two years.
But the council said it was looking at passing on savings from the tax repeal through a drop in rate rises, after a cost analysis has been run.
The Yarra Ranges Council announced on 13 August that it would run the analysis, and pass on any savings identified to ratepayers.
Deputy Mayor and Acting Mayor, Maria McCarthy said that the council increased rates by 1.5 per cent in the 2012-’13 financial year to accommodate the carbon price’s impacts.
Now the tax was gone, Cr McCarthy said the council would be investigating any savings, and passing them on to ratepayers.
“Effectively, Yarra Ranges Council has been caught between a rock and a hard place,” she said.
“The previous council tried to do the right thing by including the carbon tax in the rates, so that ratepayers wouldn’t be forced to pay a lump sum or extra costs down the track, if the tax was to continue.”
Healesville Action Group (HAG) member, John Anwin, said the council should be refunded the extra money it was charged by utilities, and that the council should in turn refund the carbon tax money collected to residents.
“That was what we paid at the time, and it needs to be refunded,” he said.
“If that leaves a shortfall for the shire, they need to go to who they paid it to, and get the shortfall back from them.”
He said he understood the council’s difficult “balancing act” of trying to keep rates low while still providing ample services, but that he stood resolute in demanding a refund.
Cr McCarthy said the council’s Long-Term Financial Plan committed the council to a once-off rates reduction, which would be representative of the carbon tax savings.
The commitment was under the condition of the tax being repealed, with no substitute legislation put in place.
She said she didn’t want the council to be seen to be profiting from ratepayers’ money by not passing on the savings.
“I want Yarra Ranges Council to be on the front foot,” Cr McCarthy said.
“All eyes should now be directed to the utility companies to see what they do, because if they charge us, we will then be forced to cover those costs.”
The council will be running a cost analysis, to figure out the exact impact the repeal of the tax will have, and Cr McCarthy estimated that results could be seen in next year’s budget.
“We anticipate that any identified savings will be returned to ratepayers through the 2015-’16 budget process and subsequent rate notices,” she said.
Areas particularly affected by the carbon price listed by the council were construction costs and utilities.
The Yarra Ranges Council was contacted by the Mail, with questions about whether a refund of carbon tax-related costs would be possible.
The council was also asked whether rate rises could potentially be lowered with the carbon tax repealed.
However a spokesperson for the council refused to comment and said no details could be given until the cost analysis was complete.
