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Understanding property rates & charges

How are rates and charges calculated?

Property types

Once we have established our budget and income from fees and charges as well as other government sources, we set a “rate percentage” for the financial year on the following different property types:

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 is used to calculate differential rates on these property types.

Type of differential rate  2017 - 2018 CIV %  Number of Assessments  Rates 2017 - 2018 $  Proportion of total rates and charges % 
Residential Land

0.3493

 59,221

99,625,254

75.12

Vacant Sub Standard Land

0.3493

 332

8,270

0.01
Commercial Land

0.5240

 2,291

8,654,920

6.53
Industrial Land

0.5240

 928

3,742,412

2.82
Farm Land

0.2445

 1,798

5,011,257

3.78

An example of the calculation for a property worth $400,000 would be:

Capital improved value $400,000 
Rate percentage 0.3493% 
General rates $1,397.20

Waste charges

A fixed charge applies for the collection and disposal of waste from properties, which you can view on our waste charges page.

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.

To find out more about this levy, please visit the fire services property levy website.

Multiple rate notices

We are required to separately rate each part of a property that is able to be separately occupied, you may receive more than one rate notice for a single property.

Granny flats, bed and breakfasts, farm managers houses, retirement village units and shopping centres are all examples of properties that will receive more than one rate notice.

In some cases the second occupancy is built on the proviso that it must be removed from the property at the time the person/s it was built for no longer lives in that unit. This unit's value will still be rated as valuations are used as a mechanism to apply the appropriate level of rates based on the conditions that currently exist.

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

 

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