Understanding Rate Capping and Property Revaluations
Read this and watch our videos to learn about rate capping, how your property is valued, and the levies that appear on your rates notice.
Rate Capping Explained
It’s that time of year again! You (and everyone else) will soon get your rates notice.
This year, Brimbank City Council like all Local Governments across Victoria, was required to work within the rate cap set by the Minister for Local Government.
For 2016/2017, the rate cap has been set at 2.5 per cent.
This means that the overall amount Council will collect from rates will increase by 2.5 per cent.
There are however a number of factors that influence the total rates you’ll pay.
How am I affected by the State Government 2.5 per cent rate cap?
We’re now required to implement the annual rate cap set by the Minister for Local Government, which is monitored by the Essential Services Commission.
Because 2016 is a property revaluation year your rates bill may not be exactly 2.5 per cent more than last year. It may be more or it may be less.
Watch our What is Rate Capping? video.
Your property and its value
Your property’s value will most likely have changed in the last two years.
Any change in your rates depends on any change in your property’s value compared to changes in value of other properties in Brimbank.
Who revalues my property? And how often?
Independent valuers conduct revaluations on all Victorian properties every two years. This process is overseen by the State Government Valuer General.
The 2016 valuation is your property’s value at 1 January 2016. It came into effect for rating purposes from 1 July 2016. This valuation is maintained and used for 2016/2017 and 2017/2018 rate charges.
How are property valuations determined?
They’re based on
- Land size;
- Property attributes (including floor size, number of rooms, building materials etc.);
- Recent sales data; and
- Records of renovations and building improvements.
If your property’s value has increased by a greater percentage than others in Brimbank, you’ll pay more of the combined general rates total.
If your property’s value has increased by a lessor percentage than others in Brimbank, you will pay a smaller percentage of the combined general rates total.
What are the other charges on my rates notice?
In addition to the rates amount, all ratepayers may be required to pay the following annual charges:
This contribution ensures all ratepayers pay an equal amount toward Council’s administrative costs.
The municipal charge has risen 2.5 per cent, from $69.81 in 2015/2016 to $71.55 in 2016/2017.
Your rates notice also includes an Environmental Charge - this charge is exempt from the rate cap.
This is applied to residential properties and incorporates the cost for
- weekly rubbish collection ;
- fortnightly recycling collection;
- annual hard waste program; and
- the State Government landfill levy.
For 2016–2017, the Environmental Charge has risen 6 per cent and will raise $25.3 million, which includes the State Government landfill levy of $3.5 million that will be paid back to the State Government.
Watch our Valuations? video
State Government Charges
The Landfill Levy is a portion of your Environmental Charge. Landfill levies are paid on waste disposed of at licensed landfills in the state.
The levy funds are administered by the State Government and are used for environment protection activities such as the promotion of the sustainable use of resources and best practices in waste management.
All landfill levies are paid into the Environment Protection Fund and the money is distributed in accordance with the Environment Protection (Distribution of Landfill Levy) Regulations 2010.
Fire Services Property Levy
We’re also required to collect the Fire Services Property Levy on behalf of the State Government. Although it appears on your rates notice, the levy is not a Council charge and is not subject to the rate cap.
The Fire Services Property Levy was introduced by the State Government in 2012 to replace the levy formerly charged by insurance companies on individual home insurance premiums.