Rate percentage increases
The Local Government Act 2020 requires us to have a Revenue and Rating Plan. This is a plan for how we will generate income to deliver the Council Plan, programs and services, and capital works commitments for the next 4 years.
Our rates and charges are an important source of revenue. They make up 77% of the total revenue we receive each year.
The Minister for Local Government announced that the average property rate cap for 2023–24 will rise by 3.5%. We won’t be asking for any changes to this rate cap.
Future years are estimated using the Department of Treasury and Finance forecasts of the consumer price index. However, we are taking a conservative approach to the rate cap and set this at 2.5% for future years.
| Year | Rate increase % |
|---|---|
| 2024 | 3.5% |
| 2025 | 2.5% |
| 2026 | 2.5% |
| 2027 | 2.5% |
| 2028 | 2.5% |
Forecast of our rates and charges
The table below is an overview of our rates and charges. It shows what we forecast in 2022–23 compared to the actual 2023–24 budget.
| Type or class of land | Forecast actual 2022–23 | Budget 2023–24 | Change in dollars | Change in percentage |
|---|---|---|---|---|
| General rates | $169,984,617 | $176,805,537 | $6,820,920 | 3.9% |
| Supplementary rates and adjustments | $900,000 | $900,000 | $0 | 0% |
| Waste management charge | $31,686,000 | $33,466,000 | $1,780,000 | 5.6% |
| Interest on rates and charges | $550,000 | $550,000 | $0 | 0% |
| Special rate schemes | $1,374,555 | $1,449,130 | $74,575 | 5.1% |
| Less early payment discount | –$857,016 | –$1,168,665 | –$311,649 | 26.7% |
| Cultural Recreation charges | $56,002 | $56,360 | $358 | 0.6% |
| Total rates and charges | $203,694,158 | $212,058,362 | $8,364,204 | 3.9% |
Rates and property value
The Valuer General of Victoria took over the rateable property general valuation process on 1 July 2018. It also changed this process to happen every year instead of every 2 years.
Under the Local Government Act 1989, local governments can increase rate revenue through valuations of properties. The Valuer General of Victoria works out and certifies the Capital Improved Value (CIV) of properties. We then use the CIV to work out the rates.
The way rates are charged is the same for residential and business properties.