Other councils are 'unhappy' with social housing rates proposal

While this decision included all metro areas, only a handful of regional areas are on the list; Ballarat, Geelong, and Bendigo.

Victoria's treasurer, Tim Pallas, said money saved would be funnelled back into the facilities, member for Lowan, Emma Kealy raised concerns about impacts on wait lists.

Cr Gulline said there was no implication for the people of Horsham.

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"Where it applies it means the state government doesn't pay rates so the rates have to be picked up by other rate payers," she said.

"Because it doesn't apply here, the state government will continue to pay rates on the value on those properties the same as every other ratepayer.

"Councils where this does apply were very unhappy."

Member for Lowan, Emma Kealy has raised concerns on what impact this might have on social housing.

"There is no doubt we need more public housing, with more than 400 people in our region alone on wait lists," she said.

"But Labor's move to exempt social housing from paying rates - essentially exempting the government from footing this bill - will do nothing to improve these wait lists; instead it actually disincentives councils from supporting such developments.

"If councils cannot recoup any rates from social housing, and receives no financial support from the government to fill the shortfall, they will be left with no choice but to recoup that cost from other ratepayers.

"So while this move might look like a good thing, it in fact represents a multi-million-dollar bill being shifted from the government to Victorian ratepayers."

Victoria's treasurer Tim Pallas said the change would help access and would provide a secure and ongoing funding stream for social and affordable housing

"Access to safe, affordable and energy efficient social housing benefits all Victorians - these changes will add further momentum to the delivery of social housing across the state," he said.

At this stage, the exemption is yet to be introduced.

The rates reform will be phased in over four years from July 2023 and will only apply to social housing properties. The reform will not apply to affordable housing.

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