Your rates explained

Rates explained

On this page:

What is rate capping?

Has the promised 2.5 per cent rate cap been applied?

How am I affected by rate capping?

Is this why my bill could be more than 2.5 per cent or less than 2.5 per cent of last year’s bill?

So the council hasn’t increased the market value of my property to get more money?

What can I do if I can’t afford to pay my rates?

Where do my rates go?

Will rates increase by 2.5 per cent every year?

How will rate capping affect Hobsons Bay City Council?

Where can I find more information?

 

What is rate capping?

In October 2015 the Minister for Local Government announced the Fair Go Rates system, to take effect from 2016/17. This system is also known as rate capping.

This year, the rate cap has been set to 2.5 per cent for all councils in Victoria.

This means the overall amount Council will collect from general rates will increase by 2.5 per cent.

Watch this video for more info:

How does rate capping work? from MAV on Vimeo.

 

Has the promised 2.5 per cent rate cap been applied?

Yes, but it is important to note that the rate cap is applied to the general rates collected by Council. The cap is not applied to waste service charges or the fire services levy (collected for the state government) which are included on the rates bill. Council will also receive supplementary rates throughout the year so total rates collected may be slightly higher than 2.5 per cent.

How am I affected by rate capping?

Because 2016 is a property revaluation year, rate increases in 2016/17 will not be consistent across all properties.

This is the formula used to determine your rates bill.

How general rates and charges are calculated.

 

Is this why my rate bill could be more than 2.5 per cent or less than 2.5 per cent of last year’s bill?

Yes. Depending on the increase in your property revaluation, some ratepayers will pay less than the 2.5 per cent cap and others will pay more. The overall general rates collected by Council won’t exceed the rate cap.

So Council hasn’t increased the market value of my property to get more money?

Property revaluations are conducted independently as a legislative requirement every two years and values in Hobsons Bay have significantly increased since the last revaluation.

There is a common misconception that as property values increase, Council receives a ‘windfall gain’ of additional revenue. This is not the case, as the revaluation process results in a redistribution of the rate burden across all properties in the municipality. Total income from rates (excluding waste service charges) is determined by the rate cap. In simple terms, as property values increase, the rate in the dollar is reduced.

What can I do if I can’t afford to pay my rates?

Hobsons Bay City Council has a Hardship Policy that provides ratepayers experiencing financial difficulties the option to defer, waive or enter into repayment schedules for costs owed to Council. The policy provides clearer definitions of financial hardship and the options available to effected ratepayers.

You may also be eligible for a rebate on your rates if you hold a Centrelink Blue Pension card or a Veteran Affairs Gold Card entitlement as TPI or War Widow.

Please call our customer service team on 9932 1000 for further information.  

What are my options if I disagree with my property valuation?

If you believe that your valuation (CIV) is too high you can lodge an objection. Objections can be lodged via the prescribed form and must be received by Council within 60 days from the date on your rates notice.

When completing the form please provide evidence which supports your belief that the value is too high. If you do not provide any valid reasons the Valuers will only check for data and mathematical errors.

Please contact Council on 9932100 or email rates@hobsonsbay.vic.gov.au for a form or further information. Please note that your objection must be lodged within two months of receiving the annual rates notice.

Where do my rates go?

How far does $100 go? graph

Will rates increase by 2.5 per cent every year?

No. The Minister for Local Government sets the rate cap for each year based on the Consumer Price Index.

How will rate capping affect Hobsons Bay City Council?

Rates account for 77 percent of our total income. A cap to rates revenue will mean a loss of $1.4 million in the first year compared to our Strategic Plan and a projected loss of $60 million over the next 10 years.

We are doing our best to focus on efficiency and cost-savings measures which do not impact on the community. We will conduct service reviews which will allow us to assess the true cost of each service and its value to the community. This approach will hopefully help us find further savings each year or lead to more effective ways in which to do business.

We will also be in regular conversations with our Local Members, state and federal governments, about future funding assistance they can provide to assist us in continuing to deliver the infrastructure and services this community expects.

Where can I find more information on rate capping?

For further information regarding Fair Go Rates system, please visit the Fair Go Rates or Essential Services Commission websites.

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