Property Rates & Charges Explained

Overview

Rate revenue is crucial to ensure we can continue to maintain community assets, build new infrastructure and provide over 120 services to our community.

Keep reading to learn how rates are calculated and what your charges pay for.

How are rates and charges calculated?

Once we establish a budget and determine our income from fees, charges and other government sources, we set a “rate percentage” for the financial year.

The rate percentage differs depending on the property type. The five different property types are:

Land type

Land use

Residential Land

Used primarily for residential purposes or land which is currently vacant but can be developed for residential purposes.

Sub Standard Vacant Land

Land which can't be built on because of its locality and zoning under the planning scheme where there is an adopted restructure plan.

Commercial Land

Used primarily for the sale of goods, services or other commercial purposes, or vacant land within a commercial planning zone.

Industrial Land

Used primarily for industrial purposes or vacant land within an industrial planning zone.

Farm Land

If you own a farm you can apply for a Farm Land rate, which will reduce rate charges. To be eligible for this rate you will need to meet the following criteria:

  • the land must be more than two hectares

  • be used for primary production.

 

The capital improved value (CIV) is used to calculate differential rates on these property types. Capital improved value refers to the total market value of the land plus buildings and other improvements.

Type of differential rate

2019 - 2020 CIV %

Number of Assessments

Rates 2019 - 2020 $

Proportion of total rates and charges %

Residential Land

0.2894

60,309

108,786,328

75.92%

Vacant Sub Standard Land

0.2894

332

8,769

0.01%

Commercial Land

0.4341

2,297

8,178,479

5.71%

Industrial Land

0.4341

1,005

3,447,284

2.41%

Farm Land

0.2026

1,737

4,668,096

3.26%

 

An example of the calculation for a property worth $500,000 would be:

Example Property

Capital improved value

$500,000

Rate percentage

0.2894%

General rates

$1,447

Multiple rate notices

Properties containing multiple parts that are able to be separately occupied will receive multiple rate notices.

We issue a separate rate notice for each part of a property that is able to be separately occupied.

Examples of properties that will receive more than one rate notice include: granny flats, bed and breakfasts, farm managers houses, retirement village units and shopping centres.

In some cases a second occupancy is built on the provision that it must be removed when the person it was built for no longer lives in that unit. This unit's value will still be rated as rate calculations are applied based on the conditions that currently exist.

For more information on granny flats, view our planning advice page.

  

Charges

Waste charges

A fixed charge applies for the collection and disposal of waste from properties.  Find more information on waste charges.

Fire services property levy

The fire services property levy (FSPL) funds vital services provided by the Country Fire Authority and Metropolitan Fire Brigade. These services protect Victorians twenty-four hours a day, seven days a week.

 

Find out more about the fire services property levy.