Rates & Valuations
Local Government receives the bulk of its income from municipal rates. Each year, Council is required to prepare a budget that takes into account rates revenue.
This figure is calculated from the amount of budgeted expenditure for the year, less income from other sources (such as Government grants, statutory fees, user chargers, sale of assets, interest on investments, etc.)
The rates imposed on each individual property are calculated by multiplying the property's capital improved valuation by the rate in the dollar declared by Council:
House and land valued at $200,000 would be rated as follows:
General Rates = CIV x rate in dollar $200,000 x 0.00662 = $1,324.00
The above example illustrates a simplified way of how rates are charged. Council uses a differential rating system which means a different rate in the dollar applies for different classes of property. Council also levies a municipal charge of $80 per rateable assessment for 2012/2013. The same principles apply in each situation. Please refer to Table 2 below.
Table 1. Calculating the rate in the dollar
| $20,000,000 | Total budgeted expenditure for Council |
| $9,500,000 | Less income from all sources other than rates |
| $500,000 | Less income from municipal charges |
| $10,000,000 | Equals rate income required |
| $1,510,574,000 | Capital improved value (CIV) of all properties |
| $10,000,000 | Rate income required |
| $1,510,574,000 | Divided by CIV of all properties |
| $0.00662 | Equals Rate in the dollar |
Council may declare a Municipal Charge to cover some of the | |
Table 2. Differential Rates
| Rate Differential | Weighting |
| General | Base rate in dollar |
| Commercial | 1.5 times base rate in dollar |
| Industrial | 1.2 times base rate in dollar |
| Farm | 0.525 times base rate in dollar |