Rates Questions and Answers

The Victorian Government has introduced a new rate cap system that restricts how much councils can collect in rates.

This video explains how rate capping works, will rates go up by 2 per cent, do councils get more money when property values go up, how are council rates set and what do my rates pay for?

What are the components of my annual Council rates bill?

How are general rates calculated?

Why isn’t my rate bill 2 per cent more than last year?

Has Council increased the market value of my property to get more rates revenue from me?

 

What are the components of my annual Council rates bill?

  • General rates (capped at 2 per cent)
  • Waste charges
  • Fire Services Property Levy (set by the State Government)

General rates — Glen Eira City Council has complied with the Victorian Government’s rate cap of 2 per cent. In Glen Eira, the cap applies to the average annual general rate only.

Waste charges — The waste charge pays for kerbside waste collection, recycling, waste disposal and State Government Landfill Levy — a charge Council must pay when depositing waste at landfill. Waste charges are not subject to the rate cap.

Fire Services Property Levy (set by State Government) — All Fire Services Property Levy money collected by councils is passed onto the State Government to fund fire agencies. This charge is set by the State Government and is not subject to the rate cap.

 

How are general rates calculated?

Council rates (eg. $10 million) are divided by the combined value of all rateable properties (eg. $40 billion) then this figure equals the ‘rate in the dollar’ (eg. 0.004) and is multiplied by the market value of your property (eg. $320,000) to get your general rates figure (eg. $1,280).

 

Why isn’t my rate bill 2 per cent more than last year?

The 2 per cent rate cap applies to the average rate per assessment of all rateable properties in the municipality.  The average is then used to determine the overall revenue collected by Council. The 2 per cent rate cap does not apply to waste charges or the Fire Services Property Levy, both of which collect revenue for the State Government.

In a revaluation year, if your property increased in value by more than the average in the municipality, your rates will increase by more than 2 per cent. If your property value increased by less than the average, your rates will increase by less than 2 per cent and may in fact reduce from the previous year.

 

Has Council increased the market value of my property to get more rates revenue from me?

Council does not receive extra money if your property valuation increases. Some ratepayers will pay less than the 2 per cent cap and others will pay more.