Your rates explained

Why are rates collected?

Rates are a critical source of income and allows us to provide a range of services to help our community to enjoy a healthy, active and safe lifestyle. The below shows how much each service receives for every $100 we spend.

On your rates notices, you will also see charges for the collection of your waste and a Fire Service Levy, which helps fund Victoria's fire and emergency services. 

 

Council Spending

How your rates are calculated

You rates are calculated using the following formula:

Rates Calculation

Total rate revenue 

As part of our annual budget process, we first determine how much funding needs to be raised via rates to help fund local infrastructure and services. 

Rate in the dollar 

The total rates revenue is divided by the combined value of all rateable properties. The resulting figure is called the 'general rate in the dollar'.

For example, if we needed to raise a total rate revenue of $10millon and the total value of all rateable properties is $2.38billion, the total general rate in the dollar is 0.42 cents ($10million ÷ $2.38billion).

You can see a full list of property types and associated rate in the dollar further below.

Value of your property

Every property is valued using Capital Improved Value (CIV), which means the total market value of the land plus buildings and other improvements (ie. Swimming pool, landscaping).

Property values are updated each year by valuers from the office of the Valuer-General Victoria. To do this accurately, they may need to visit your property or may request information from you.

Property values vary across a municipality and over time. We do not collect extra revenue as a result of changes in property valuations. Instead the charges are re-distributed based on changes in each property’s value. The purpose of regular revaluation is toe ensure rates are equitably distributed.

If you believe the valuation of your property is inaccurate or unreasonable, you can object to it within a certain timeframe. We recommend you first speak to our Property & Revenue Coordinator on 03 5722 0838. 

Municipal charge

Some councils will charge a flat rate charge to offset some of their administrative costs. We do not charge a municipal charge.

Calculating your rate payments

To calculate the total annual rates due, we multiple the CIV by the rate in the dollar. 

For example, if the CIV of a property is $250,000 and the rate in the dollar is set at 0.42 cents, the annual rate amount would be $1,050 ($250,000 x 0.0042). This is then divided by four and paid on a quarterly basis. So you would page $262.50 per quarter.

If you would like to learn more about how we calculate your rates, you can read our Rating Strategy(PDF, 5MB).

Rate in the dollar by property type

Property type Description Rate in $
General Residential land 0.4739
Vacant General Residential land which does not have a dwelling on it 0.9478
Rural Residential Residential land that is less than 8ha, located in a rural or semi-rural setting and has a dwelling 0.4739
Vacant Rural Residential Residential land that is less than 8ha, located in a rural or semi-rural setting and does not have a dwelling on it 0.9478
Rural 1 Farming and rural land between 2 - 40ha 0.3317
Rural 2 Farming and rural land that is bigger than 40ha 0.3080
Commercial & Industrial Land being used for commercial or industrial purposes, including manufacturing or sales 0.6540
Vacant Commercial & Industrial Land that is zoned to be used for commercial or industrial purposes and does not have a dwelling on it 0.9478
Vacant > 3 Years Residential land which does not have a dwelling on it, has been vacant for over 3 years and has not changed ownership 1.2320
Mixed Use Land which is being used for commercial or industrial purposes and has dwelling which is being used as a place of residence 0.5639


Rate capping

What is rate capping? 

Our general rates are subject to a rate cap set by the Minister for Local Government each year. This means that our total general rate revenue cannot increase by more than the cap.

What does the rate cap apply to?

The rate cap applies to general rates. It does not apply to waste charges which are driven by the cost of providing the service. The Fire Services Property Levy is also not subject to the rate cap.

The rate cap for 2020/21 has been set at 2.0%

Does this mean that my overall rates will only increase by the rate cap?

It is important to know that the rate cap does not apply to your individual rates notice, but rather the total amount of general rate revenue raised. The rates and charges for your property may increase or decrease by a different percentage to the rate cap due to:

  • The valuation of your property relative to the valuation of other properties in the municipality
  • The application of any differential rate by Council
  • The inclusion of rates and charges not covered by the rate cap.

Where can I find more information?

You can find out further information regarding Fair Go Rates System here.

Waste charges

We also collect a waste charge to cover the cost of collecting and disposing of your garbage, recycling and organic waste. The amount charged depends on the size of your bin and whether you live in a urban or rural area. 

Waste type Urban Rural
Garbage
140L - $170
240L - $337
240L - $285
Recycling All sizes - $149 All sizes - $149
Organics 240L - $170 N/A

Fire Services Property Levy (FSPL)

Property owners must pay an annual levy via their council rates to help fund Victoria's fire and emergency services. We collect this levy on behalf of the State Government. You can find out more information here.  

The levy comprises of two parts - a fixed charge and a variable charge. The variable charge varies depending on the property's location, classification and capital improved value (CIV).

Property type  Fixed charge  Variable charge (cents per $100 of CIV
Residential land (including vacant)   $113 5.4c
Commercial land $230 61.1c
Industrial land  $230 87.9c
Primary Production land  $230 19.0c
Public benefit land  $230 5.4c
Vacant land (excluding residential)  $230 11.8c

Single farm enterprise exemption

You can apply for an exemption if you own or occupy 2 or more parcels of farm land which are used for a single farm enterprise (SFE). Eligible SFE's may only need to pay fixed charge once for the property.

You can apply for an exemption using the SFE Application Form(PDF, 251KB).