The increased rates applying to vacant land holders will be scrapped under big changes to simplify Baw Baw Shire's rating strategy.
The draft revenue and rating plan proposes council continue with its differential system but apply just three categories - general/residential land at the general rate; farm land at a discount of 20 per cent; and, commercial and industrial land with a 30 per cent surcharge.
The move abolishes four categories - vacant land, urban living, residential development and industrial vacant land, which was added just last year.
Only 1328 properties - or 0.45 per cent of the shire's properties - fell into the four categories last year.
Vacant land holders were previously slugged a 80 to 140 per cent surcharge to the general rate in an attempt to trigger development.
However, Cr Danny Goss questioned if it worked.
Interim chief financial officer Matt Hubbard said the changes would both simplify the strategy and provide equity, believing it would provide best practice.
He said no other councils operated under a similar rating strategy.
Farmers will continue to receive a 20 per cent rates discount to recognise benefits of large holdings and traditionally being less demanding on council services.
Council added the industrial vacant land category to address a shortfall of available land in the industrial zone. An estimated 71 properties were impacted last year, contributing just 0.7 per cent of total rates raised.
More than $65.8 million is set to be raised in rates revenue this year. When combined with waste and other charges, it represents 58 per cent of council's annual income.
There are just under 30,000 rateable properties in the shire and the base average rate is $2136.
Although council is expected to collect about $800,000 in rates from new properties, Cr Goss said the cost of maintaining and expanding services to match this growth significantly outweighed that amount.
Residential rates contribute 72.3 per cent of council's rates income. An estimated 25,690 residential properties will pay $47.67 million, 12.8 per cent more than last year.
A total of 2426 farmers will contribute $101.57 million to the rates pool - $732,000 more than last year, while 1809 commercial and industrial holders will contribute $6.61 million - an 18.7 per cent increase.
The rating plan offers a 100 per cent rebate to 13 sport and community organisations in the shire, at a total value of $56,297. This represents an increase of more than 7.5 per cent.
The cultural and recreation land rebate applies to bowls clubs at Drouin, Longwarry, Neerim District, Thorpdale, Trafalgar, Trafalgar Park, Warragul and Yarragon, golf clubs at Drouin and Trafalgar, Garfield Wattle Raceway/Drouin Speedway, Moe Field and Game and Angling Club and Warragul Drouin Pistol Club.
Warragul Country Club will receive a 47 per cent rebate on its rates, valued at $29,637.
The state government also announced the Fire Services Property Levy is set to be replaced by the Emergency Services and Volunteers Fund. However, it has not yet been finalised.
Council has a mandatory instalment rate payment system. Like last year, rate payment is to be split over four instalments, with payments due by the end of September, November, February and May.
The plan said mandatory instalments related to improved cash flows and "brings council into closer alignment with virtually every other utility service provider".
The early bird payment draw has been ceased, the document noting this decision was "to ensure fairness and equity to all ratepayers".
The rating plan also includes a financial hardship policy for residents which allows flexible payment arrangements or rate deferral if ratepayers meet the criteria.
As of April 23, there were 539 assessments on payment plans and 73 on financial hardship agreements.
Highlighting cost of living hardships, council stated $5.3 million in rates and charges were overdue. Of the outstanding amount, $3.3 million was specifically rates from the 2024/25 year.