Your Rates Explained

Introduction

Rates are a primary source of revenue for the City of Busselton and are imposed on properties within the district to raise revenue to fund services and facilities for residents and visitors.

The amount of rates payable is determined by four factors:

  1. the properties method of valuation of Gross Rental Value (GRV) or Unimproved Value (UV)
  2. the amount of the valuation
  3. the properties differential rating category; and
  4. 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 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 rate is generally imposed to ensure that every landowner makes a reasonable contribution to the rate burden. Also is it 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, like for example holiday homes.

For the 2021/22 financial year it is intended, as in many prior years dating back to the 1980s, to use differential rates to raise rate revenue and balance Councils 2021/22 Annual Budget, whilst also considering its Long Term Financial Plan (2020/2021 to 2029/2030) funding requirements. It is intended that for 2021/22 financial year there will be an average 2.5% increase to each differential rate category. For some properties this increase will be higher due to a change in valuation.

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

How Are Rates Calculated?

The City calculates your rates based on the following calculation:

Your Rates = Rate1 x Valuation2 + Yearly Fees

1: differential rate in the dollar as set by the City

2: set by the Valuer General

Differential Rate Rate in the $ Minimum Payment
GROSS RENTAL VALUATION PROPERTIES

Residential – Improved & Vacant $0.100916 $1,410
Holiday Homes $0.111020 $1,465
Commercial & Industrial - Improved & Vacant $0.116572 $1,410
UNIMPROVED VALUATION PROPERTIES

Primary Production $0.004328 $1,410
Rural $0.004240 $1,540
Commercial $0.007825 $1,410

Minimum Payment 

Where the calculation of rates is less than or equals to the minimum payment as set by Council, then the minimum payment is levied on the property.

Minimum payments are set in recognition that every property receives some minimum level of benefit from works, services and facilities provided by the City. 

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. 

Other Yearly Charges, Fees and Levies

All yearly charges, fees and levies are clearly outlined on your Rate Notice and may include:

Specified Area Rates

Port Geographe – Rate in the Dollar: 1.59940c

To all properties within the area known as Port Geographe, in order to meet obligations Council has under a "Waterways Management" Deed. The rate is applied to all properties within the area of former Town Planning Scheme No. 19 based upon a properties G.R.V.

 

Provence – Rate in the Dollar: 1.49180c

To all properties within the area known as the Provence Subdivision (Busselton Airport North), in order to hold funds for the maintenance of the approved higher standard of landscaping within the Provence subdivision in accordance with Council Policy 185/3 including future capital replacement of landscaping structures as may be required.

 

Vasse – Rate in the Dollar: 1.87070c

To all properties within the area known as the Vasse (Birchfields) Subdivision, in order to hold funds for the maintenance of the approved higher standard of landscaping within the Vasse (Birchfields) subdivision in accordance with Council Policy 185/3 including future capital replacement of landscaping structures as may be required.

 

Provence UV – Rate in the Dollar – 0.01450c

To all properties within the area known as the Provence Subdivision (Busselton Airport North), in order to hold funds for the maintenance of the approved higher standard of landscaping within the Provence subdivision in accordance with Council Policy 185/3 including future capital replacement of landscaping structures as may be required.

Waste Infrastructure Rate

A rate in the dollar is levied to fund significant waste infrastructure development and boost recycling activities to reduce landfill. The rates in the dollar are:

  • Unimproved Valuations – 0.00004 cents in the dollar; Minimum Rate - $60.00
  • Gross Rental Valuations – 0.0001 cents in the dollar; Minimum Rate - $60.00

Swimming Pool Fee

Charged per annum for properties that have on them a swimming pool, for an approved Council officer to inspect the safety requirements.

State Government Emergency Services Levy (ESL)

The Emergency Services Levy (ESL) is a compulsory State Government levy which is forwarded to the Department of Fire and Emergency Services (DFES) to fund services such as fire and rescue services, bush fire brigades and state emergency services throughout Western Australia.

The State Government has determined that there will be no increase in the amount of ESL raised for the 2020-21 financial period.  For further information please refer to the DFES website at or call 1300 136 099.

Did you know?

The Emergency Services Levy (ESL) funds Western Australia’s (WA) fire and emergency services, including Career and Volunteer Fire and Rescue Service brigades, Volunteer Fire and Emergency Service units, bushfire fighting and management services.​

 

Objects and Reasons for Differential Rates 

 Differential Rates – Gross Rental Valuations (GRV) 

Residential (Vacant/Improved)

The object of this category is to apply a differential general rate and minimum payment to land zoned or used or held for residential purposes. And to act as the City’s benchmark differential rate and minimum payment by which all other GRV rated properties are assessed.

The reason for this rate is to ensure that all ratepayers make a reasonable contribution towards the ongoing maintenance and provision of works, services and facilities throughout the City. 

Holiday Homes

The object of this category is to apply a differential rate and minimum payment to land used or held for Holiday Home purposes.

The reasons for this rate is in order to assist with the funding of Tourism and Marketing and related projects throughout the district. 

Commercial/Industrial (Vacant/Improved)

The object of this category is to apply a differential rate and minimum payment to land zoned or used or held for Industrial and Commercial purposes.

The reason for this rate is in order to raise additional revenue to fund Tourism and Marketing and related projects throughout the district. 

 

Differential Rates – Unimproved Valuations (UV) 

Primary Production

The object of this category is to apply a base differential general rate to land zoned or used or held typically for bona-fide farming and is to act as the City’s benchmark differential rate by which all other UV rated properties in the City are assessed.

The reason for this rate is to ensure that all ratepayers make a reasonable contribution towards the ongoing maintenance and provision of works, services and facilities throughout the City. 

UV Rural

The object of this category is to apply a base differential general rate to land zoned or used or held typically for non-primary production or non-commercial purposes.

The reason for this rate is to acknowledge that the majority of properties in this category are typically of a rural residential nature and that the level of rating should be more reflective of such use. 

UV Commercial

The object of this category is to apply a base differential general rate to land zoned or used or held and used typically for non-agricultural commercial purposes within an agricultural setting.

The reason for this rate is to achieve a fair and equitable level of rating between commercial properties within both the UV and GRV differential rating categories. 

 

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