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.
How your rates are calculated
You rates are calculated using the following formula:
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.
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 Revenue and Rating Plan(PDF, 864KB) and Rating Strategy(PDF, 5MB).
Our Revenue and Rating Plan establishes the revenue raising framework within which Council proposes to work. The Revenue and Rating Plan is supplementary to the Rating Strategy which describes our approach to ensuring equitable distribution of property rates.
Rate in the dollar by property type
||Rate in $
||Residential land which does not have a dwelling on it
||Residential land that is less than 8ha, located in a rural or semi-rural setting and has a dwelling
|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
||Farming and rural land between 2 - 40ha
||Farming and rural land that is bigger than 40ha
|Commercial & Industrial
||Land being used for commercial or industrial purposes, including manufacturing or sales
|Vacant Commercial & Industrial
||Land that is zoned to be used for commercial or industrial purposes and does not have a dwelling on it
|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
||Land which is being used for commercial or industrial purposes and has dwelling which is being used as a place of residence
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.
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.
||240L - $285
||All sizes - $149
||All sizes - $149
||240L - $170
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).
||Variable charge (cents per $100 of CIV
|Residential land (including vacant)
|Primary Production land
|Public benefit land
|Vacant land (excluding residential)
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).