By Bronwyn McGrath

In early April Wollongong City Council refunded more than $4000 in overcharged rates to Alan O’Toole who owns a block of vacant land in Helensburgh off the Princes Highway.
Council has overcharged Mr O’Toole for the last 12 years as a result of a ‘residential’ classification to his block even though its 7D zoning prohibits building on the property.
7D zoning is aimed at protecting the Port Hacking River area and places strict restrictions on land usage.
Mr O’Toole complained to council over a year ago about paying residential rates on a block of land that cannot be built on. His successful claim has sparked an inquiry by Council into 346 other properties in Helensburgh and Otford to see if there has been any similar overcharging of rates. Council distributed questionnaires to property owners in April asking them to identify the primary usage of the land as being for residential, agricultural or business purposes. These classifications combined with the property’s valuation are what determine the rate paid.
According to Council’s Manager of Finance, Brian Jenkins, the rates issue is far from simple.
“Rate payments are not black and white, particularly in areas such as Otford where 7D zoning prevents building yet in some cases there are buildings on 7D zoned blocks,” Brian said.
When it comes to rates Council assesses each property individually based on usage and the categories of usage are set by State government legislation. Just nominating usage can be difficult when there is no category for a block of land that can’t be built on and is not for farming or business purposes.
“In this instance the ‘business ordinary’ category becomes the catch-all for these types of blocks. Generally people own a block of land for a reason and in the case of Otford I guess many people purchased blocks in the hope that the zoning would change and allow them to build. As yet this is not the case. This review is just about council ensuring that properties are rated correctly,” Brian Jenkins said.
The council’s rate review will be concluded in June when all questionnaires from selected property owners are received. If it is found that a block has been incorrectly classified resulting in a higher rate charged, a refund would be issued.
While no one knows how much the council will have to pay out, Mr O’Toole suspects it could be costly.
“Quite a lot of people have contacted me already and said they have been (zoned) in the residential category” Mr O’Toole said.
Mr O’Toole is the head of the 7D Landowners Group, formed to try and lobby the council and the State Government to review the 7D zoning. Wollongong City Council is conducting a review of the zoning later in the year.