Rates explained

Overview

Rates fund a range of vital community services and capital works projects. To view a breakdown of how rates are spent view our Budget at a Glance brochure(PDF, 870KB).

Rates and revaluations

Under State Government legislation from 2019, councils are required to revalue properties every year. A revaluation occurred in January 2019 and is used to determine rates in the 2019-20 financial year. 

Council has increased the average rate by 2.47 per cent.

The current rate in the dollar for each category is:- 

1. Residential - 0.2128

2. Residential Vacant Land - 0.3405

3. Commercial - 0.5107

4. Industrial - 0.7597

5. Petrochemical - 0.8512

6. Cultural - 0.0958

Rate capping overview video

To find out more about how rate capping works watch this video from the Municipal Association of Victoria (MAV) below.

 

Rate capping FAQs

The MAV explains how rate capping works. The Victorian Government has introduced a new rate cap system that restricts how much councils can collect in rates.

How does rate capping work?

A council’s overall rate revenue must not be more than the rate cap from last year.

Will my rates go up by the rate cap?

The rate cap does not apply to individual rates notices.

The overall rate revenue collected by a council cannot exceed the rate cap, but how much each property owner pays is determined by the value of your property.

The Victorian Government also excluded waste charges and the State’s fire services property levy from the rate cap.

Do councils get more money when property values go up?

No.

All properties were revalued on January the 1st, but councils do not receive extra money when property values rise.

Some ratepayers will pay less than the rate cap and others will pay more, but the overall general rates collected by a council won't exceed the rate cap, unless they were granted an exemption.

How are council rates set?

Each council takes the total rate revenue to be collected and divides it by the total value of all properties in its municipality to calculate the rate in the dollar.

This ensures councils do not receive more money when property values rise.

The rate in the dollar is then multiplied by the market value of each property to ensure each ratepayer contributes a fair share.

Council will add its municipal charge - if it has one - which is also included in the rate cap.

Waste charges and your fire services property levy are then added to your general rates notice to determine the total amount you will pay.

What do my rates pay for?

Almost everything you see from your front gate is provided by councils.

From the footpath, street lights, roads and bins to the parks, gardens, sports facilities and child care centres.

They remove your waste, provide free libraries, immunise babies and deliver meals to the homes of older people.

Councils collect 3.6 per cent of all taxes nationally.

Your rates help to fund more than 100 valued community services and local infrastructure worth $79 billion for the whole community to enjoy.

Reading your rates

Rates are calculated based on property valuations and in accordance with Council’s Rating Strategy 2019-20 and the Local Government Act 1989. The value of your property is listed on your rates notice as capital improved value (CIV). The residential rate in the dollar this year is set at 0.2128 cents. Multiplying these two figures will give you your rates charge. 

For example, the calculation for a residential property worth $450,000 would be:

Capital Improved Value $450,000 x Rate in dollar 0.002128 = $957.60

Plus Waste Service Charge   = $222.70

Total Rates and Charges        = $1,180.30

There is a separate amount listed for the Fire Service Property Levy (FSPL). The reformed FSPL, collected with council rates, will incorporate a fixed charge component of $111.00 for residential properties and $226.00 for all other properties plus a charge based on the capital improved value (CIV) of the property.

The state government has created an online calculator to determine the levy based on the CIV of properties. The CIV is found on your rates notice. To view the calculator, and for more information, visit www.firelevy.vic.gov.au.

Paying your rates

The payment of rates is required in four installments:

30 September 2019

30 November 2019

29 February 2020

31 May 2020

The installment amounts are listed on your rates notice.

If you make a payment of the full amount on the first installment date, no further notices will be issued until the 2020-21 financial year.

All payment options are listed on your rates notice and include credit card, BPAY, BPAY View, Post Billpay, direct debit(DOC, 326KB) , EFTPOS, cash and cheque.

Pension concessions

If you have made an application and a pension rebate was given for the previous year, you will receive a concession total of $335.15 on this years notice.

The concession total includes $235.15 rebate from Centrelink, $50 rebate from Fire Services Property Levy and $50 rebate from Hobsons Bay City Council.

Any ratepayer who holds a Centrelink Blue Pension Card or a Veteran Affairs Gold Card entitlement as TPI or War Widow and who has not received a rebate on the rate notice, should contact the Council on 9932 1000.           

For further information regarding Concession entitlements, go to: http://services.dhhs.vic.gov.au/concessions-and-benefits

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 the Council. The policy provides clearer definitions of financial hardship and the options available to effected ratepayers.

Objections

If you do not agree with the valuation or the rate amount you may lodge an objection with Council.  In the first instance call 9932 1000 and if still unsatisfied, lodge a formal objection in writing. You can also object to your land classification code, which may also affect the FSPL. Please note that your objection must be lodged within two months of receiving the annual rates notice.

Receive your rates notice by email

eRatesDid you know you can register to receive your future rates notices via email?

Help the environment by going paperless and save yourself time by paying your rates online.

Please have a copy of your latest rates notice at hand as you will need your unique reference code located in the bottom right corner of the notice. Staff at our Language Link phone line are available to translate your emailed rates notices for you. Please call 9932 1212.

Sign up here to receive your rates notice by email