Queensland cattle farmer says rates up by 66pc in three years makes his business unaffordable
/ By Jasmine HinesFor the first time, cattle farmer Daniel Perry has resorted to growing a grain crop on his central Queensland property in a bid to keep up with the skyrocketing cost of his rural rates bill.
Mr Perry said he made the decision to plant after his rates rose by more than 66 per cent in three years.
He is worried his annual bill of $30,000 will increase again after the valuer-general issues fresh land valuations on March 31.
"It's big bickies for us. It's a lot of money to find for a small family business each year," Mr Perry said.
"It's all pointed me towards diversifying because I can't carry more cattle.
"The council rates are basically determining the land use, so I'm out there ploughing out grass and trying to grow grain to try to get more money out of that soil."
Mr Perry's 4,850-hectare property is near Emerald and falls under the Central Highlands Regional Council's local government area.
In 2021, his annual rates bill was $18,000 a year, compared with $30,000 a year now.
He said unless the rate rises slowed down, his business could become unviable in 10 years.
"We run on a shoestring, really. Our running costs are sort of $120,000 to $150,000, and $30,000 of that is council rates," Mr Perry said.
"It's by far the biggest overhead expense or burden on the business."
How are rates calculated?
Rates in Queensland are determined by how much revenue councils need to raise, alongside the value of a property.
There have been calls in recent years to change how council rates are calculated for farmers to limit higher rate costs.
When land valuations increase significantly, there are options available to limit the rates increases.
For the past three years, the Central Highlands Regional Council has used a rates capping method, which for 2023–24 was 10 per cent.
It means irrespective of any rise in valuation the rates can only increase by a maximum of 10 per cent compared with 30 per cent the previous year.
"We take all concerns … into consideration," council acting chief executive Ross Higgins said.
AgForce central Queensland president John Baker said ongoing large rate hikes were unsustainable in the long term.
"There are some people who are missing out on the capping, and some of it is to do with property amalgamations or succession planning, those sorts of things," Mr Baker said.
"They're being faced with the full increase in their rates … some of them are getting up to a level that is pretty hard to sustain."
No benefit in rising land valuation
Mr Perry said that as he did not want to sell his property and planned to pass his land down to his two young sons, aged 10 and 12, there was no benefit to a higher land value.
"I'll never see any of that money. That valuation money is nothing, something that you'll never see if it goes to plan," he said.
"That's what's driving me the most is my kids. It's my job to try and preserve it for them, just like my dad did for me."
Mr Higgins said the council would be considering all options ahead of its 2024–25 annual budget.
He said the council had committed to engaging with the community, and hosted four community information sessions in January, with about 140 residents attending, the majority of whom were rural ratepayers.
"We found the feedback and the discussions from those sessions were quite productive and will certainly be taking those into consideration in the next budget preparation," Mr Higgins said.
Mr Perry said he did not receive a bin service and accessed his property via an unsealed road, which was occasionally graded by the council.
He urged the council to go back to basics.
"Just keep the lights on, keep the water flowing, the sewerage under control … and then control costs like I'm sure every business does," Mr Perry said.