All Councils in Australia charge rates. Rates are a "tax" on properties and they provide Council with money for operating costs for a broad range of services, programs, facilities and infrastructure i.e.: parks and playgrounds, environmental management, roads, footpaths, fire prevention, plant control, libraries, halls, public buildings, street cleaning, animal management, local laws, bridges, street lighting, parking and immunisation. For a detailed list of Council’s operating costs you can view budget documents at any of Council’s business centres.

Rates cover the financial year from 1 July to 30 June and issue by mid August. GST is not applicable to Council rates.

Council valuations

Your local Council has an obligation under the Valuation of Land Act to assess property valuations every 2 years.  These valuations are then used to calculate part of your annual rates as explained below in ‘ How are rates calculated ‘. Ratepayers have a right of objection to the valuations as shown on their current rate notice. This must be lodged on the prescribed form within two months of the issue of the original rate notice or supplementary rate notice.  Please contact the Rate Office on (03) 5153 9588 for further information regarding the grounds for objection and the prescribed form.

Capital Improved Value (CIV) refers to the total market value of the land plus the improved value of the property including the house, other buildings, fences, landscaping and other aspects.

Site Value (SV) refers to the unimproved market value of the land.

Net Annual Value (NAV) is the annual rental a property would render (less the landlord’s outgoings) or 5% of the CIV for residential properties and farms.  The value is higher for commercial/industrial and investment properties.

Revaluation Facts Vs Myths

Ø      FACT: Council use property valuations to determine how much each ratepayer will pay in rates.

Ø      MYTH:            Increased property values increase how much a council collects in rates – NO

Increased property values do not increase the total amount of money a council collects in rates – it redistributes the amount of rates between individual properties.  Some ratepayers will pay more and some will pay less, depending on the new value of their property relative to other properties in their municipality.  Your local council budget determines how much a council collects in rates – not property valuations.

How are rates calculated?

Rates are based on the capital improved value (CIV) of each property calculated by the rate in the dollar (set annually by Council) together with a base component being the Municipal Charge.  The Council currently uses a differential rating system. This means there is a different rate in the dollar assessed for each different property type or category. Below are details of the rating structure for the 2009-2010 rating period.

General Rate

0.00324333 cents in the dollar
plus $194.00 municipal charge
plus $197.00 waste charge including green waste per service (where applicable)
plus $181.00 waste charge excluding green waste per service (where applicable)

Farm Rate

0.00308117 cents in the dollar
plus $194.00 municipal charge (unless exempt)

Commercial/Industrial Rate

0.00470283 cents in the dollar
plus $194.00 municipal charge
Waste Service not available

Pension Rebate

Pensioners who are holders of a current Centrelink or Department of Veterans Affairs Card (which specifies War Widow or TPI) may qualify for a Government rebate. Eligible pensioners may receive a rebate of up to $184.30 in respect of their principal place of residence.

The East Gippsland Shire is also offering an additional rebate to all pensioners who receive the State Government concession detailed above. This concession is 5.0% of your calculated rate amount. This will obviously vary for each property depending on the property valuation and rate calculation.

To apply, visit one of Council’s Business Centres to complete an application form, bringing your pension card for verification. If you are unable to apply in person please contact the Rate Department.

Health Care Card Holders

A Health Care Card only is not sufficient to receive a Government rebate on Council rates.