Special Rate and Charge Schemes

Yes, you can download the Special Charge Scheme policy. Since the 1920s, landowners have contributed to local improvements such as roads and drainage systems.

The scheme is usually introduced when the planned improvements will mainly benefit a specific group of properties.

A lot of development took place in Yarra Ranges between 1900 and the 1950s. At the time our region was part of country Victoria rather than metropolitan Melbourne. The infrastructure standards and community expectations were different from what they are today.

Before the 1960s, the Local Government Act didn't give Council the authority to require developers to include infrastructure improvements, like roads and drainage, when creating new subdivisions.

In 1958, the Local Government Act changed. Developers are now required to build this infrastructure alongside essential services such as:

• gas

• electricity

• water

• street lighting.

The costs of improvements are passed on to new property owners when they buy land in new subdivisions.

Your property has been identified as benefiting from the proposed works. This means you will receive specific advantages that others outside the scheme won’t.

Properties near the works often experience benefits like:

• reduced noise and dust

• better drainage

• improved road access and safety

• overall property improvement.

The Local Government Act 1989 treats all roads the same. This includes Government Roads, public highways, and private streets. Council doesn't receive extra funding for government roads. This means those roads are treated like all other roads.

The Act allows Council to ask landowners to contribute to projects that directly benefit them.

Your rates help fund essential services like:

• garbage collection

• recycling

• community facilities

• childcare

• parks

• libraries

• maintenance of public spaces.

A large part of the budget is also used to maintain existing infrastructure, like roads and buildings.

We have a high demand for infrastructure improvements. This includes 730 kilometres of unmade roads, limited footpath networks, and drainage. However, the rates collected are not enough to fully cover the cost of these improvements.

A Scheme investigation may be initiated by Council officers, landowner requests to Council, or requests from other public bodies. Council officers will develop, maintain and update a list of projects, prioritised based on need and risk or other factors.

Requests by property owners for Schemes where the Scheme involves a larger number of properties may see Council request, from property owners, a petition, to test the level of landowner support.

The petition is presented at a Council meeting and then referred to the Infrastructure Delivery Department for further assessment.

The investigation will determine the best construction standards. This will include estimated costs and any potential environmental, maintenance, or planning issues.

If we support the project, a survey is conducted to gauge landowner support. This survey will be completed by landowners whose properties will directly benefit from the works.  

The results are then reported to Council, who will decide if the project should proceed.  And being included in Council’s Capital Expenditure Program.

Council may partly contribute towards the total project cost as an incentive for landowners to become involved.  

Council generally also contributes when a road borders Crown land and/or Council reserves.

Council may consider increasing its contribution if the project benefits the wider community. For example, this may happen when a road connects to other major roads with higher traffic volumes.

For road improvements, traffic counts determine how much traffic is from landowners versus through traffic. We use this information to help calculate Council’s contribution.

We also typically contribute to improvements for road intersections and drainage. This is done as these benefit the broader community.

Usually each property is charged one unit for the benefit of the project. However, for larger properties, costs may be based on factors like the property’s frontage (up to 10% of the total charge) or the area for drainage schemes.

Properties that are being subdivided, have multiple homes, are used commercially, or have a more intensive use than regular residential properties will be assessed individually. These properties may have a higher contribution.

If your property borders two or more roads, it may have access from these roads, along with other benefits. An assessment will be done to determine which road is your primary access.

• If your property has only a side or rear boundary on the road being improved, and your main access is from another road not included in the scheme, you’ll generally be charged 0.5 of a benefit unit.

• If the improvements are being made to the road that provides your primary access, you’ll generally be charged 1 benefit unit.

Special Charge Schemes are GST free to the landowner. Any GST paid by Yarra Ranges Council is claimed back from the Australian Taxation Office. 

Your charge will be spread over several years, as specified when the scheme is declared, and will be repaid in the same way as your annual rates.

Financing costs, similar to home loan interest rates, will be added to your charge. The interest rate is fixed for the duration of the special charge and is based on advice from Council's financial institution for a fixed 10 year period loan.

Repayments will follow the same method as your regular Council rates. If you have a direct debit setup for your rates, it will also be used for the special charge.

You can pay the special charge as a lump sum payment. In this case, the total charge (which does not include financing costs) must be paid by a date set by Council when the special charge is decided. 

Apply to pay in a lump sum 

You can elect to payout the special charge at anytime requesting a payout figure for your special charge scheme. 

Yes, you can object. The process of gathering landowner support is just the first step in starting a Special Charge Scheme. Once the official process begins, landowners are formally notified. Once notified you will have the chance to make a written submission or objection.

You may appear before Council to be heard in support of your submission. After considering all submissions, Council will decide whether to move forward with the proposal and will notify all landowners of the decision.

If we decide to proceed, you can apply to the Victorian Civil and Administrative Tribunal for a review of the decision.

When the special charge is implemented, landowners will be given detailed information on how to object and who to contact.

Projects are prioritised according to Council’s current commitments, priorities and funding levels.

Projects may be listed in a future year within the program, however, We review the program on an annual basis. This helps us cater to current Council priorities. Any commitment for a particular project is indicative until finally adopted by Council within the Capital Expenditure Program (for the current financial year.)

We will ensure landowners are kept informed of the current status of the project. 

If you are unable to make your payments on time or at all, you may be eligible for consideration under Council’s Rate Recovery and Financial Hardship Policy.

Further details in relation to the policy can be found on our website or by contacting Council’s Rate Department on 1300 368 333. 

You can find information on Special Charge Scheme projects through our Shaping Yarra Ranges website.