A FEATURE of the draft South Gippsland Shire Council’s $94 million budget, handed down at a meeting of council last Wednesday, April 16 is the proposal to shift part of the burden of rates off the shire’s farmers.

While many in the rural sector are battling historically dry conditions at the moment, eagerly looking for an autumn break while there’s still time for pastures to recover, it’s the prospect that farmers will get slugged by the State Government’s new Emergency Services Volunteer Fund Levy, presently stalled in the Upper House, that’s prompted the response from council.

“Additionally, we understand the financial pressure that the Victorian Government's proposed new Emergency Services Volunteer Fund Levy could impose on our agricultural sector. Anticipating this possible increase and acknowledging the importance of the agricultural sector in South Gippsland, Council is proposing to reduce agricultural rates by lowering the farm rate differential from 70 to 65 per cent.”

Local dairy farmer representative, Ben Vagg of Leongatha South, has cautiously welcomed the initiative, but is concerned the tab will be picked up by homeowners, business operators and other classes of property owners.

“It’s good to see but at whose expense? The rates aren’t going down. They’re still going to collect the same amount in rates,” said Mr Vagg.

He said farmers in some districts across South Gippsland were struggling with the dry conditions but there was still time for relief if good rains fell in the next few weeks.

“We were teased with 30ml a couple of weeks ago but we certainly need follow up rain. We’re not as bad here at Leongatha South but some areas are struggling, especially for stock water.”

At the April Council Meeting, South Gippsland Shire Council endorsed the draft Budget 2025/26 – 2028/29 for community consultation.

The shire issued the following statement:

The budget, while conservative, offers a responsible outlook and a comprehensive, Shire-wide approach to funding allocation.

The South Gippsland community were recently invited to have a say on how they would like to see Council funds spent through the Shaping South Gippsland engagement.

As a result of this engagement process, the following initiatives are proposed in the Budget:

$1.2 million to be allocated to a dedicated reserve fund to create a buffer to support the region to respond to extreme weather events.

An additional $20,000 for Council’s Community Grants program to provide seed funding for communities to create additional revenue streams and to support the incredible work of volunteers and non-profit organisations in South Gippsland. If endorsed, this would bring the total value of the program to $260,000.

• $150,000 to begin the process of implementing a developer contribution plan overlay in Nyora, requiring developers to contribute to the long-term infrastructure needs of the township.
• $80,000 for the development of an Open Space Asset Management Plan, which will guide the management and maintenance of assets, including play spaces across the Shire.
• $50,000 to tackle the Shire’s growing weed problem, with a focus on education and support programs for landowners and our agricultural sector.
• $50,000 to commence a heritage review in selected townships.
• $30,000 to enhance mental health support and suicide prevention through the Live4Life program, which is delivered in local schools.

The overall Capital Works program totals $21 million.

South Gippsland Shire Council Mayor, John Schelling, encouraged further feedback from the community on the draft budget, and also on the other key planning documents received by council last week including the Vision 2024, Council Plan 2025-29, draft Financial Plan 2025/26-2034/35, draft Revenue and Rating Plan 2025-29, Asset Plan 2025-35 and Municipal Health and Wellbeing Plan 2025-29.

“The draft Budget has been thoughtfully developed to maintain our current level of service delivery, while remaining sensitive to the economic challenges facing both Council and our community. I would describe this Budget as fiscally responsible and forward focused, and I’m pleased to see initiatives such as the farming differential and a dedicated reserve fund to support emergency recovery, included in the documents now open for community consultation,” said Cr Schelling.

“I’d like to thank everyone who contributed to the initial development of this Budget, and I look forward to reviewing the feedback received through this engagement process.”

To review the draft Budget and provide feedback, please visit: yoursay.southgippsland.vic.gov.au

Feedback closes Wednesday, May 7.