City of Mount Gambier is undertaking a comprehensive review of its rating structure to ensure fairness and equity, and so that it continues to meet the evolving needs of the growing community. With rate revenue contributing more than 63 per cent of Council's total income in the 2025/2026 budget, the review is a key step in maintaining a sustainable and relevant approach to raising revenue to fund community services and infrastructure.
"This is not about increasing rates, it is about distributing them more fairly," Mayor Lynette Martin said.
"We want to ensure our rating system reflects the diverse needs of our community and supports a sustainable future for Mount Gambier."
The review focuses on the distribution of rates across land use categories, not the total amount of rates raised. The aim is to consider if the distribution of rates is equitable across all ratepayers while considering principles of taxation, strategic planning priorities and the changing profile of the community.
Council engaged LGiQ to model proposed changes using current capital valuations and land use classifications for the 2025/2026 to 2028/2029 period. The modelling reflects present-day data, with future variables such as new developments, valuation shifts, and inflation excluded due to their potential to influence outcomes over time.
The consultation paper outlines proposed changes and considerations. These include:
- Fixed charge set at 34 per cent of general rate revenue
Ensures all ratepayers contribute a base amount for services available to all equally (eg. roads, parks, events). Balances equity and benefit received, with lower-value properties paying proportionately less overall.
- Residential rates
No change to the residential differential rate. Minor redistribution from commercial and industrial categories, offset by the fixed charge adjustment. Average rate increases are modest and spread across many properties, minimising individual impact.
- Commercial properties - differential reduced from 270 per cent to 200 per cent
Benefits approximately 1,108 commercial properties. Eases financial pressure while still recognising higher service demand and infrastructure use.
- Industrial properties - differential reduced from 270 per cent to 200 per cent
Delivers significant savings for 243 industrial properties. Supports local industry and improves rating equity for properties currently paying a higher proportion due to their typically larger capital values.
- Primary production - differential Increased from 100 per cent to 250 per cent (phased over two years)
Affects approximately 28 properties within the city boundary. Supports strategic planning goals, discourages underutilisation of land and improves infrastructure efficiency. It also reflects income-generating potential.
- Phased differential rating structure over three years
Gradual adjustment across land use categories to improve equity and reflect capacity to pay. Reduces commercial and industrial differentials, increases primary production, and maintains vacant land differential rates. Reduces sudden impacts for majority of ratepayers and allows time for ratepayers to adjust.
- Short Stay Rental Accommodation (SSRA) - reclassified as commercial
SSRA properties will be rated as "commercial - other" due to their income-generating nature and higher service demand. Most are currently rated as residential; the change will result in higher rates for affected properties. Supports fairness, equity, and strategic housing goals under Council's Affordable Housing Plan. Council will use data mining tools to accurately identify SSRA properties and ensure fair implementation.
Modelling and impact highlights:
- Residential: Average rates increase modestly (+3.4 per cent) over 3 years with the differential rate retained at 100 per cent. Residential properties represent 87 per cent of assessments and 73 per cent of total rate revenue by 2028/2029.
- Commercial (excluding SSRA): Rates decrease by 12.8 per cent over 3 years, with differential rates reducing from 270 per cent to 200 per cent. Share of total rate revenue drops from 20 per cent to 17 per cent.
- Industrial: Rates decrease by 12.8 per cent over 3 years, supporting local employment and economic resilience. Share of total rate revenue drops from 6 per cent to 5 per cent.
- Primary Production: Rates increase by 142.25 per cent over 2 years, addressing strategic alignment, planning inefficiencies and encouraging efficient land use.
- Vacant Land: Modest increase (+6.5 per cent) with the 270 per cent differential retained to discourage land banking and encourage timely development.
- Other: Moderate increase (+11.21 per cent) with differential retained at 100 per cent, reflecting diverse land uses and rebate eligibility.
- SSRA: Rates increase by 72.9 per cent as properties shift from residential to commercial classification effective from 1 July 2027.
"This review is about making sure our rating system is fair, transparent, and aligned with the needs of our community - not about increasing overall rates," City of Mount Gambier General Manager Corporate and Regulatory Services Jane Fetherstonhaugh said.
Community members are invited to provide feedback to help shape the final rating strategy.
"We're looking closely at how rates are distributed across different property types to ensure everyone contributes in a way that reflects their use of services and capacity to pay. Community feedback is vital to help us get this right."
Visit www.haveyoursaymountgambier.com.au to:
- View the Review of the Basis of Rating Consultation Paper and information sheets,
- Provide feedback or comments, and/or
