Rates and Charges Explained

Watch this short video on how rate capping works and how rates are calculated. 

Video courtesy of the Municipal Association of Victoria.

 

How rates are calculated

Councils use property values as the basis for distributing the rating burden across the municipality.

Calculating how much each property owner pays in rates involves determining the total amount of rate revenue required and dividing this across the total value of all rateable properties to establish a rate in the dollar. This is done as part of Council's annual budget process.

The rate in the dollar is then applied against the Capital Improved Value (CIV)* of each individual property to calculate how much each property owner pays. The formula for calculating general rates, excluding any additional charges or arrears, is:

General Rates = CIV x Rate in the CIV Dollar 

Any increase in our general rates revenue is capped at 1.5% across our entire rate base.

For more information about how your rates are calculated, see this information from knowyourcouncil.vic.gov.au

 

* The Capital Improved Value (CIV) is the market value of the land plus buildings and other improvements. In Victoria, each property's CIV is assessed annually by the Valuer General.

Councils are able to levy either a uniform rate across all properties, or one or more differential rates. Differential rates are where councils set different rates in the dollar for different categories of rateable land. 

Benalla Rural City Council uses differential rates to ensure all rateable land makes an equitable financial contribution to the cost of carrying out the functions of the Council. This means there can be different rates in the dollar for each separate rating category.

A property is allocated a differential rate category based on the primary use of the property.  In Benalla Rural City the categories are:

  • Residential (Benalla)
  • Residential (Rural Townships)
  • Vacant Land (Benalla)
  • Vacant Land ( Rural Townships)
  • Business
  • Rural (Farmland)
  • Rural (Non-farming)

If you would like to find out more about how your property is classified as one of these properties, visit our page on Differential Ratings and view the Rating and Revenue Plan 2021-2025.

If you believe your property is being rated under the incorrect differential category, please phone us on 03 5760 2600 or email council@benalla.vic.gov.au

The State Government has introduced the Fair Go Rates System (FGRS) which sets out the maximum amount councils may increase the average rates per property in a year.

Any increase in our general rates revenue is capped at 1.5% across our entire rate base. This means we cannot collect more than 1.5% more in general rates revenue compared to the previous financial year.

The Municipal Association of Victoria has prepared this short video describing how rate capping works and how rates are set.  

 

 

 

Municipal Charge

This is a fixed amount levied on all rateable properties to cover some of the administrative or fixed running costs of the Council.

Type of Charge

per Rateable Property
2020-21

per Rateable Property
2021-22

Change

Municipal Charge

$252.60

$256.38

1.50%

 

The municipal charge ensures that all properties, regardless of their size or valuation, contribute a base, equal amount towards the operation of the Council.

The Local Government Act 1989 requires that the total revenue received from the municipal charge must not exceed 20% of the sum of the total revenue from general rates and the municipal charge. 

Farmers in receipt of multiple rate notices may apply for an exemption in certain circumstances, to ensure that only one rate notice is levied this charge. Where multiple dwellings exist on the Single Farm Enterprise, an exemption can only be claimed for one dwelling.

Applications for exemption must be lodged within 60 days of receiving your annual rate notice.

 

Waste Management Charges

A compulsory waste collection and recycling service is provided to all urban and rural households and businesses.

It is the responsibility of the property owner to ensure that you have received your waste collection bins and that your property is being serviced. This includes non-resident property owners. Contact the Council if you experience issues with this service.

Some properties have limited access and are not able to be serviced. These properties are exempt from waste management charges.

Urban Collection Properties

Type of Charge

per Rateable Property
2020/2021
$

per Rateable Property
2021-22
$

Change

80 lt Organic - 80 lt Waste with Recycle

340.00 357.00

5.00%

120 lt Organic - 80 lt Waste with Recycle

376.00 394.50

4.92%

240 lt Organic - 80 lt Waste with Recycle

452.50 475.00

4.97%

80 lt Organic - 120 lt Waste with Recycle

415.00 435.50

4.94%

120 lt Organic - 120 lt Waste with Recycle

490.00 514.50

5.00%

240 lt Organic - 120 lt Waste with Recycle

564.50

592.50

4.96%

80 lt Organic - 240 lt Waste with Recycle

640.00 672.00

5.00%

120 lt Organic - 240 lt Waste with Recycle

714.50 750.00

4.97%

240 lt Organic - 240 lt Waste with Recycle

790.00 829.50

5.00%

 

Rural Collection Properties

Type of Charge

per Rateable Property
2020-21
$

per Rateable Property
2021-22

$

Change

80 lt Waste with Recycle

340.00

357.00

5.00%

120 lt Waste with Recycle

490.00

514.50

5.00%

240 lt Waste with Recycle

790.00

829.50

5.00%

 

Additional Collection Items

Type of Charge

per Rateable Property
2020-21
$

per Rateable Property
2021-22
$

Change

 

Additional Bin - Organic

225.00

236.00

4.89%

Additional Bin - Waste

180.00

189.00

5.00%

Additional Bin - Recycle

191.50

201.00

4.96%

Weekly Collection - Waste

198.00

207.50

4.80%

Weekly Collection - Recycle

163.00

171.00

4.91%

 

The property owner elects the bin size to suit their needs. If the owner doesn’t select any particular size, the service will provide default 120 litre waste collection bins. If you would like assistance selecting a bin size, or would like to apply for a different size, please see our waste collection page for more information.

Commercial and industrial properties serviced by a private waste collection contractor are exempt from the Council waste service. Details of the private collector must be supplied in writing to the Council to receive this exemption. Contact the Council for further information about this exemption.

 

Fire Services Property Levy

The Victorian Government’s Fire Services Property Levy (FSPL) is collected by the Council on behalf of the Victorian State Government. It does not form part of Council revenue.

The Fire Services Property Levy funds vital lifesaving equipment, firefighters, staff and volunteers, training, infrastructure and community education.

For more information about the Fire Services Property Levy, visit the State Government FSPL page.

All property valuations are undertaken annually by the Valuer-General Victoria.

Property owners have the right to object to the valuation of their property under the Valuation of Land Act 1960.  You must lodge any objection within two months of receiving your rates notice.

If you have an objection to your valuation, phone us on 03 5760 2600, email council@benalla.vic.gov.au or pick up a form from the Customer Service Centre. We then refer your objection to the Valuer-General Victoria to review.