Comment By STEVE GRAY
TENTERFIELD Shire Council’s team of bureaucrats has been attending community meetings as they attempt to sell massive rate rises in the shire.
Only briefly mentioned is the compounding effect of the intended rate rises.
Although compounding is mentioned the presentation glosses over the full effect the rate rises would have. You can’t just add them up. They have to be stacked, each upon the last, to understand the full effect.
Below is the calculation, prepared by an accountant, on $100 for 10 years on the council’s rates proposal, from which you can calculate what the full rates hike will be:
Year 1 is 15 per cent on $100 = $115.00
Year 2 is 10 per cent on $115.00 = $115.00 x10 divided by 100 = $10.50 .Add to$115.00 = $125.50
Year 3 is 10 per cent on $125.5 = $125.5 x10 divided by 100 =$12.55. Add to $125.5 = $138.05
Year 4 is 3 per cent on $138.05 = $138.05 x 10 divided by 100 =$13.81. Add to $$138.05 = $151.86
Year 5 is 3 per cent on $151.86= $151..86 x 3divided by 100 = $4.56.Add to $151.86 = $156.42
Year 6 is 3 per cent on $156.42 = $156.42 x 3 divided by 100 = $4.69. Add to $156.42 = $161.11
Year 7 is 3 per cent on $161.11 = $161.11 x 3 divided by 100 = $4.83. Add to $161.11 = $ 165.94
Year 8 is 3 per cent on $165.94 = $165.94 x by 3 divided by 100 = $4.98. Add to $165.94 = $170.92
Year 9 is 3 per cent on $170.92 = $170.92 x by 3 divided by 100 = $ 5.13. Add to $170.92 = $176.05
Year 10 is 3 per cent on $176.05 = $176.05 x by 3 divided by 100 = $5.28. Add to $176.05 = $ 181.33
The above $181.33 is a 81.33 per cent increase on $100 after 10 years on the above rates.
On $1000 current rates the payment after 10 years would be $1813.30
