MORNINGTON Peninsula Shire councillors have voted to hand residents of retirement villages across the peninsula a 20 percent rebate on their general rates for the 2025/26 financial year.
The decision comes after an assessment by Valuer-General Victoria’s (VGV) contract valuers led to increased Capital Improved Values (CIV) for retirement village units across the peninsula. Further, a historical bulk discount to the CIV of these units was removed by the shire following VGV advice, leading to substantially higher rates for retirement village residents.
The motion presented to councillors recommended a 10 percent rebate on general rates for retirement village units for the 2025/26 financial year, with a commitment to consider the rating treatment of retirement village units as part of the 2025–26 Rating Strategy Review, including the potential introduction of a separate differential rating category.
Deputy mayor Cr Paul Pingiaro was first to speak on the motion, immediately introducing an amendment to increase the rebate from the officer recommended 10 percent rebate to 15 percent.
“We have 2515 retirement village units across 15 plus villages in our shire,” said Pingiaro.
“Their CIV has increased by as much as 29 percent. Rate increases of between 10 and 25 percent have occurred despite the state rate cap of 3 percent. So residents are rightly asking ‘why are my rates going up by 15 to 25 percent when there is a 3 percent cap?’”
“These villages maintain their own roads, curbing, lighting, drainage, swimming pools, bowling greens, men’s sheds, community centres and social clubs. They fund this themselves. Yet they are being charged rates the equivalent of full-service households. That’s simply not fair.”
Cr David Gill moved a further amendment to increase the rebate to 20 percent.
“I think we’re in a bidding war by the look of it, up to where it should be,” said Gill.
“So if we’re going to do it, let’s do it. If we recognise our pensioners in retirement villages, then we recognise them and we make it real.
“My original motion was to defer this until we get to a set position which would be satisfactory to everybody instead of digging into the budget the way we are, but that’s not going to happen. The best thing now to do is to give the full 20 percent to our pensioners in retirement villages.”
The motion to pass on a 20 percent general rebate in the 2025/26 year to retirement village residents was passed unanimously.
CEO of Village Glen in Rosebud, Marcus Thompson, told The News “Village Glen welcomes the council’s unanimous decision to reinstate the longstanding 20 percent rate adjustment for retirement village residents for this financial year. We appreciate the council’s willingness to listen and respond to the concerns of residents, many of whom are pensioners living on fixed incomes.”
“From the 2026/2027 year, we look forward to budget consultation with council as we seek to formalise this long-held adjustment via differential rating.”
Daniel Gannon, Retirement Living Council executive director, applauded the shire’s decision, stating “It’s a damn good thing to see local government getting it right.”
“Residents already fund essential services like road upgrades, street lighting, garden maintenance, sewerage, and a portion of water rates, meaning they receive fewer council services than those in standard housing.”
Gannon pointed out that other councils, such as Cairns, had refused relief for retirement village residents, and that the Mornington Peninsula Shire’s decision “sent a powerful message to the rest of the country.”
First published in the Mornington News – 29 July 2025