How your rates are calculated
As a result of a number of rates forums earlier 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 for each $1 a resident is paying in rates, a commercial property will pay $1.20, an industrial premise will pay $1.50 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 - CIV transition rebate*.
*The CIV transition rebate is only applicable for the 2019/20 financial year and only applies to properties that have received an increase in rates equal to or greater than 30 per cent from the previous financial year to allow for transitioning of the rating system from NAV to CIV.
The example below is for a residential property that has been valued by the Valuer-General's office at $750,000 no pensioner rebate applicable, no additional waste management service charges applicable and did not incur a 30 per cent or more increase to rates in the 2019/20 financial year.
$750,000 x $0.00294654 + $157.65 + $20 = $2,387.56 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 2019/20 financial year the rate in the dollar has been set at $0.00294654 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 2019/2020 financial year the waste management service charge has been set at $157.65. 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.
2019 transition rate rebate
We are aware of how annual valuations have resulted in substantial increases in rates for some residents, and while valuations are a matter for the Valuer-General, we have attempted to help residents with the transition by the introduction of a rate rebate scheme for residential properties that have a rates increase of equal to or greater than 30 per cent compared to last year's bill.
Please note that we may also charge interest on late payments.
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 and no waste charge.
$750,000 x $0.00353585 + $20
= $2,671.89*
Industrial premises
Valued by the Valuer-General’s Office at $750,000, with municipal charge and no waste charge.
$750,000 x $0.00441981 + $20
= $3,334.86*
Vacant land
Valued by the Valuer-General’s Office at $750,000 with municipal charge and no waste charge.
$750,000 x $0.0589308 + $20
= $4,439.81*
*Please note: you also need to include Fire Service Property Levy charges. Visit the State Revenue Office website for more information.