Vic councils claim seniors’ van parks are robbing them of rates revenue
Councils will lobby the Victorian Government to crack down on caravan parks that offer permanent homes. They say that some new developments are really retirement villages masquerading as van parks, allowing operators to avoid paying rates.
The Municipal Association of Victoria wants the laws amended so operators pay rates on each site.
Currently, a caravan park is a single rateable property of which the park owner is regarded as the occupier. But experts say stretching the definition is a state wide trend.
In some instances only a single rate is being charged for a site with up to 150 dwelling units – some up to 12 to 14 squares. These residents own their villas and they consider the transportable units to be their
homes and assets.
The Moira Shire in rural Victoria estimates rate revenue lost from one such village in Cobram – classed as a van park – is $67,000. On its website, the village concerned is described as Australia’s foremost relocatable home park.
Its managing director said the park was legal and met a demand for low cost housing. If the village had to pay rates on each unit, residents would be punished.
Housing for the Aged Action Group tenancy adviser, Jeff Fiedler, said large numbers of retirees were turning to van park style villages.
“There is a loophole; these villages can be set up and only charged a single rate,” he said.
