How your rates are calculated

As a result of a number of rates forums held in 2019, the community indicated strong interest to move away from the Net Annual Value (NAV) system of rating to the Capital Improved Value (CIV) system of rating.

The CIV system is the most commonly used valuation by Victorian Councils and takes into account the full development value of the property. It’s also reflective of the general market value of the property as at the date of valuation.

The CIV system also allows residents to see how much they are paying for waste management. This cost was previously absorbed into the overall rates residents paid.

The calculation for CIV has a general rate for residents and a differential rate is applied to other types of land, such as commercial, industrial and vacant land. Additionally it  has reasonable differentials for commercial and industrial premises – when compared to the residential rate in the dollar.

This means that in 2020/21 for each $1 a resident is paying in rates, a commercial property will pay $1.20, an industrial premise will pay $1.55 and vacant land owners will pay $2.

Calculating your rates

Rates on residential properties are calculated using the Capital Improved Value (CIV) system. 

Below you can find how we apply the CIV system to determine rates on residential properties.

The formula for calculating rates is:

  • Property value x rate in the dollar + waste management service charge + municipal charge +  fire services property levy - any applicable pensioner rebate

 

$750,000 x $0.00276226 + $179.75 + $20+ $153.50 ( fire services property levy).  = $2,424.95 total rates payable

Rate in the dollar

The rate in the dollar is set by Council annually as part of the annual budget process. For the 2020/21 financial year the rate in the dollar has been set at $0.00276226 for residential properties.

 

Waste management service charge

The waste management service charge on the rate notice provides for the kerbside collection and disposal of a weekly garbage and fortnightly recycling bin service as well as one annual hard waste collection for eligible residential tenements.

For the 2020/2021 financial year the waste management service charge has been set at $179.75.  A green organics bin service is currently an opt-in service and will incur an additional cost based on the bin size selected.

Should additional bins or a bin upsize be required (waste, recycling) these will also be charged at an additional cost. Any additional bin charges will be clearly listed on individual rate notices.

Visit our bins and waste management page for more information on waste services and the related costs for requesting additional bins, or for an upsize of your current bins.

Municipal charge

All property owners are required to pay a municipal charge of $20. The municipal charge contributes to the operational costs of the Council.

 

Fire services property levy

The Victorian Government requires all councils to collect the Fire Services Levy from ratepayers. All funds received by Council through this levy go directly to supporting the Metropolitan Fire Brigade (MFB) and the Country Fire Authority (CFA).

Visit the State Revenue Office website for more information.

Pensioner rebate

Visit our pensioner rebate on rates page for more information.

 

Commercial, industrial and vacant land calculations

Council sets differential rates, for different categories of rateable land. The rate in the dollar amounts for commercial, industrial and vacant land calculations are shown below:

Commercial premises

Valued by the Valuer-General’s Office at $750,000, with municipal charge, fire service levy property charge  and no waste charge.

$750,000 x $0.00345283 + $20 + $688.25

= $3,297.87*

Industrial premises

Valued by the Valuer-General’s Office at $750,000, with municipal charge, fire service levy property charge  and no waste charge.

$750,000 x $0.0042815 + $20 + $889.25

= $4,120.38*

Vacant land

Valued by the Valuer-General’s Office at $750,000 with municipal charge, fire service levy property charge and no waste charge.

$750,000 x $0.00552452 + $20 + $153.50

= $4,316.89*

*Please note: for further details regarding Fire Service Property Levy charges please visit the State Revenue Office website

Video: explaining rates

The Municipal Association of Victoria has put together a video which explains rate capping, how your rates are calculated and how council uses rates to improve the community.

Watch the 'rates explained' video.