source : the age
The Mornington Peninsula Shire is facing pressure to permanently restore a rates discount for local retirees after it was quietly axed last year, leaving residents almost $200 worse off.
The council previously offered a 20 per cent discount to individuals living in retirement villages, but the reduction was removed in early 2025 when the state government’s valuing services were centralised across all local government areas with the Valuer-General Victoria.
However, in July last year, the council voted to introduce an equal rebate temporarily for the 2025-26 financial year. Deciding what to do next is part of a wider strategy review to be finalised in March.
Nancy Taylor, who is chair of the Mornington Peninsula Retirement Village Alliance (MPRVA) and lives in a retirement village in Capel Sound, says the discount needs to be reinstated permanently.
“The peninsula is an area with a large ageing population. We feel as if retirement villages support the Shire in providing affordable housing,” Taylor said.
To date, about 2600 residents have joined the MPRVA, which is urging the council to restore the discount. Two separate petitions on the topic with more than 350 combined signatures were received by council at its February 17 meeting.
Across the Mornington Peninsula there are 15 retirement villages with 2515 units, according to council documents.
Like other residents, people in retirement villages pay rates that go towards waste collection, roads and footpaths, environment planning and recreation activities.
But village residents also have access to private facilities such as paths, pools, gyms, clubhouses and recreational spaces, which generally require a separate service fee to maintain. Taylor says this means these residents don’t utilise many of the council’s services, aside from weekly bin collection.
The proposed 20 per cent discount would result in an average rate reduction of $181 for retirement village properties, and an average increase of $4 for general residential properties.
“We feel as if we’re paying twice … People out in the street don’t realise exactly the situation inside a retirement village,” she said.
Sandra Jeffree, 77, lives at Beleura Village Mornington and is chair of village management. She said her community are pushing for the council to not only reinstate the 20 per cent rate but increase it to 30 per cent.
Residents were shocked after the sudden removal of their discount last year, she said.
“It was very upsetting … A lot of people are simply on the age pension. The fact we’ve moved into a smaller [retirement village] doesn’t mean we have lots of money,” Jeffree said.
The state government released ministerial guidelines for applying differential ratings in 2013 that identify retirement villages as land eligible to receive differential rates, and say that local governments must consider a reduction.
But it comes at a time when councils are under increasing cost pressures, with a plan floated this week to amalgamate three inner Melbourne municipalities into one mega-council and Glen Eira voting to seek a rare rate cap exemption to avert a cash crisis.
The majority of councils do not apply the lower rate, noting residents can still access community facilities. However, councils neighbouring Mornington – including Frankston City Council, Melton City Council and Knox City Council – all offer discounts.
Differential rates for retirement villages are separate to pension or concession card discounts, which are a state government rebate only available to eligible pensioners. According to Mornington City Council, 62 per cent of peninsula retirement village units currently receive pension discounts.
Retirement Living Council executive director Daniel Gannon said that retirement village residents shouldn’t pay the same rates as regular households because many also fund private amenities.
“This isn’t about retirement village residents avoiding rates – it’s about recognising their unique situation, where they already self-fund many services that councils would otherwise provide,” Gannon said.
“Most residents are on fixed low incomes, and big rate hikes don’t just sting – they force brutal choices between groceries, medication, transport and healthcare.”
For Taylor, who presented to council in favour of the permanent discount last Thursday, reinstating it is the only fair way forward.
“[Retired] residents are vulnerable in this cost of living crisis that we’re having because we’re on either fixed incomes or age pension,” she said.
“We really feel as if we’re self-sufficient and not a burden on councils. We feel as if we’re contributing quite highly towards the whole area.”
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