Graziers Seek Legal Advice Over Three-Year 'Inequitable' Rates Dispute

Cattle producers in Far North Queensland are pursuing legal counsel in a protracted dispute over council rates, which they argue are "grossly inequitable." The Cassowary Coast Graziers Association, formed in 2023, contends that their rates are significantly higher than those in comparable neighboring regions.

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Our rates are grossly inequitable.

"We pay the highest rates in the dollar of all the east coast peers by a long margin, and that's been the case for 10 years now," said Jason Burzacott, a grazier from Maria Creeks. The association is not necessarily seeking lower rates but demands greater transparency in how these rates are determined, aligning with the council's stated policies. Burzacott emphasized, "All we're asking of Cassowary Coast Regional Council is to tell us why they reckon our rates are equitable."

Andrew Gaffen, CEO of the Cassowary Coast Regional Council, acknowledged the graziers' concerns but defended the rating system as equitable. He explained that comparing rates solely by the "rate in the dollar" is misleading. Council rates are calculated by multiplying the rate in the dollar by the land valuation, which is set by the state government. This year, farmland valuations in the region saw a 60% increase.

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We pay the highest rates in the dollar of all the east coast peers by a long margin, and that's been the case for 10 years now.

While the council controls the rate in the dollar, it does not influence valuations. Burzacott noted that the council's rate in the dollar is currently 1.8 cents, higher than the approximately 1.4 cents in the dollar charged by the Burdekin Shire Council, another region used for benchmarking. The graziers estimate that these rates consume about 30% of their gross profit margin, with one grazier, Anthony Callega, stating, "For every three cows I have in the paddock, they take one every year."

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You can't compare grazing rates by looking at the rate in the dollar alone.

The council's revenue policy considers a farm's revenue-generating ability and its impact on the road network when setting the rate in the dollar for farming. Previously, all farms were grouped under a single primary production category. However, for the current financial year, the council divided this into subcategories including livestock, sugar cane, horticulture, forestry, and aquaculture, with each sector now paying the same rate in the dollar. Gaffen added that the council budget aims to balance rising costs with the needs of all ratepayers, including primary producers.

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All we're asking of Cassowary Coast Regional Council is to tell us why they reckon our rates are equitable.