Your Rates Explained

Rates Introduction

It remains necessary for the City to levy rates for the 2020/21 financial year despite the COVID-19 pandemic as they are the primary source of revenue needed to fund the services and facilities that are required to be provided to residents and visitors. 

The amount of rates payable is determined by four factors: the properties method of valuation of Gross Rental Value (GRV) or Unimproved Value (UV), the amount of the valuation, the properties differential rating category and the rate in the dollar or minimum payment of that differential rating category. 

A GRV or UV is applied to land predominantly used for non-rural purposes and rural purposes respectively. Valuations are provided by the Valuer General in accordance with the Valuation of Land Act 1978. Council sets a rate in the dollar in its annual budget which is applied to a valuation to give a properties rate liability. 

A single general rate may be imposed on all properties in a GRV or UV value category.  Alternatively the City can apply a differential general rate on a GRV or UV property on the basis of its zoning, use, whether it is vacant land or other characteristic or a combination of characteristics. 

A differential general rate is generally imposed to ensure that every landowner makes a reasonable contribution to the rate burden. It is also used to maintain relativities between rate groups, assist in achieving a higher or lower level of rating, and also to assist in target driven rating for specific rate groups. 

For the 2020/21 financial year it is intended, as has been the case in prior years, to use differential general rates to raise rate revenue and balance Councils 2020/21 Annual Budget, whilst also considering its Long Term Financial Plan (2019/20 to 2029/2030) funding requirements. 

There will has been no increase in the rate in dollar and minimum payment for the 2020/21 financial year on the previous year. 

Rate in Dollar and Minimum Payment 

The rate in the dollar and minimum payment for the 2020/21 financial year on each differential rating category are: 

Differential Rate

Rate in the $

Minimum Payment

GROSS RENTAL VALUATION PROPERTIES

Residential – Improved & Vacant

$0.098490

$1,375

Holiday Homes

$0.108339

$1,430

Commercial & Industrial - Improved & Vacant

$0.113732

$1,375

UNIMPROVED VALUATION PROPERTIES

Primary Production

$0.004404

$1,375

Rural

$0.004455

$1,500

Commercial

$0.008037

$1,375

Minimum Rates 

Each differential rating category has a minimum payment that is applied to ensure those properties not subject to a rate in dollar calculation make a fair and equitable contribution to the City’s rate revenue. 

A minimum payment is levied where when calculating a rate liability by using the rate in the dollar multiplied by a properties valuation it is equal to or less than the minimum payment.

Further information on Councils rates can be located at: https://walga.asn.au/About-Local-Government/Rates/Rates-Resources


Contact


Please contact the Rates Department on 08 9781 0444 or email city@busselton.wa.gov.au