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Taking care of rates

Councils need to charge rates to raise revenue so they can provide services and infrastructure to their communities. Each year as part of the budget process, councils decide the rates and charges for the financial year. The level of rates that landowners must pay is at the sole discretion of their council.

How do councils control rates?

Councils carry out the following processes to help determine what level of rates to charge:

  • evaluate and determine the range of services it needs to support the community for example, waste management, local roads and suburban care
  • decide how much money is needed to fund services and infrastructure
  • establish how much funding it can expect to receive from the federal and state governments and other income sources
  • determine how much money is required from rates and charges to cover the balance of expenditures
  • decide on the best mix of rates and charges to provide services to the community.

To find out more about how your council levies rates and charges, contact your council directly.

Types of rates and charges

Councils must levy a general or differential general rate on all rateable land. However, councils have considerable flexibility in calculating the rates they choose to adopt.

General rate

Differential general rate

Minimum general rate

Separate rate or charge

Special rate or charge

Utility charge

State charge

How valuation changes affect rates

It is not the valuation that determines the amount of the general rate or differential general rate you pay, it is determined by the 'rate' (or cents per dollar) which a council applies to that valuation. If you live in a townhouse or unit complex, the council will levy your general or differential general rate on the portion of the valuation allocated according to your interest schedule of lot entitlement, or alternatively, you may be charged the minimum general rate set by council.

Making a complaint about a rates notice

To make a complaint about your rates notice, you must contact your council directly.

Council's budget

Council's are required to adopt a budget for each financial year. In normal circumstances, the budget is adopted between 1 June and 31 August each year. The annual budget must be consistent with the aims and direction of the council's corporate plan, its revenue policy and annual operational plan.

Revenue sources

There are six main ways that local governments raise money to provide infrastructure and services to communities:

  • rates and charges
  • fees
  • profit from council owned businesses including child care centres, public housing, caravan parks and camping grounds, sporting and recreational facilities and areas, cultural and heritage activities and transport services
  • grants and subsidies
  • loans
  • developer contributions and infrastructure charges levied on land being developed to pay for water supply, sewerage and drainage, roads and pathways and public recreation.

Councils are required to document the processes used to raise revenue. These documents are publicly available and include the corporate plan, operational plan, revenue policy, revenue statement and budget. To view any of these documents contact your council or visit their website.