MORNINGTON PENINSULA — Mornington Peninsula Shire Council is moving to halve the rate relief provided to retirement village residents, in a decision that could leave thousands of elderly ratepayers worse off during a period of intense cost-of-living pressure.
The Council has proposed a temporary 10% rebate for the 2025–26 financial year — replacing the longstanding 20% discount historically applied to retirement village units under lease, licence or land-lease arrangements. The change comes after contract valuers appointed by the Valuer-General Victoria (VGV) removed the valuation adjustments previously used to reflect the limited marketability of these units.
Affected residents — many of whom are aged pensioners with no superannuation and little capacity to absorb rate increases — now face higher Capital Improved Values (CIV) and, by extension, higher general rates. Council’s proposed 10% rebate would only apply for one year and does not cover fixed charges such as the waste service fee.
More than 2,500 units across 15 villages are affected, with around 62% of those residents already receiving a capped pensioner rebate from the State Government. Council officers estimate the one-year rebate will cost $230,000, a figure that is currently unbudgeted.
The move is being framed as transitional support, but critics argue it is a clear cost-cutting measure that unfairly targets a vulnerable cohort with limited political power. Council has acknowledged that the change will lead to increased financial strain on retirement village residents but has opted to proceed regardless, citing budget constraints and the need for a broader review of the rating system.
“This is a slap in the face,” said Darren Lewis, whose father is a resident at Beleura Retirement Village in Mornington. “Council is cutting support to the very people who built this community, while claiming it aligns with their ‘wellbeing plan’. It’s out of touch.”
The proposal will be revisited as part of the 2025–26 Rating Strategy Review, where Council may consider introducing a separate differential rating category for retirement villages — a more structural solution that could redistribute the rate burden more equitably. However, any such change is still at least a year away and would require extensive community consultation.
In the meantime, affected residents are left to absorb the cost.
If Mornington Peninsula Shire is serious about supporting a “flourishing, healthy and connected community,” why is it shifting the financial burden onto those least able to bear it?
Do they get the peninsors discount to rates? If so then why another discount?
the discount is off the valuation. Why should they get it I don’t. I am retired also and on pension.
a more structural solution that could redistribute the rate burden more equitably. Yes double the rate on home over 3mil.