Wollondilly's Rate Structure Review

Adopted May 2023

At its meeting of 23 May 2023, Council voted to streamline the rate structure for the Shire, to be fairer, simpler and more efficient.

Council has needed to consider all factors including legislative requirements, growing inequities in the current system, and community feedback. In recognition of current cost-of-living pressures, Council also voted to introduce a new Resident Rate Relief Grant Program for ratepayers whose rates have increased by more than $100 per quarter, and are able to show genuine financial hardship. More information will be available soon.

A snapshot report of community consultation, including emerging themes, is available under ‘What We Heard’, and the Council report is available on Council’s website.

Background

The rating system for the last 30 years has been a minimum rate structure. Rates have been calculated solely on property value multiplied by the ad valorem (cents in the dollar) rate according to the rate category, and subject to a minimum amount if the calculated amount falls below the minimum threshold for that category. It had several issues including growing unfairness between (and within) rate categories and a high number of assessments on the minimum rate (Council is allowed up to 50% of assessments to be on the minimum amount within a single rate category).

As well, the 2023/24 financial year is the first time the new land valuations from July 2022 provided by the NSW Valuer General will be used. Some people’s land value has dramatically increased. For context, the overall increase in land value across Wollondilly Shire is more than 80%. With rates tied to land value, staying on the minimum rate structure would have meant that more than half of the total rate increase would have been concentrated on about a quarter of property owners.

The New Rate Structure

There are two main changes to the rate structure:

  • Reducing the number of rating categories from seven to four by eliminating sub-categories.
  • Changing the way rates are calculated to include a uniform ‘base rate’ plus a proportion determined according to the property’s land value as evaluated by the NSW Valuer General.

Introducing a ‘base rate’ acknowledges there are costs for common services and administration from which we all benefit. Council is not allowed to charge a flat rate across the board, but having a base rate reduces the impact of property value on rates, it flattens the rate structure, and reduces the difference between the highest and lowest rate levy.

Importantly, Council’s rate revenue will not increase by more than the 3.7% cap set by the Independent Pricing and Regulatory Tribunal (IPART).

More Information

For more information please contact Council’s Revenue Team on 4677 1100.


Adopted May 2023

At its meeting of 23 May 2023, Council voted to streamline the rate structure for the Shire, to be fairer, simpler and more efficient.

Council has needed to consider all factors including legislative requirements, growing inequities in the current system, and community feedback. In recognition of current cost-of-living pressures, Council also voted to introduce a new Resident Rate Relief Grant Program for ratepayers whose rates have increased by more than $100 per quarter, and are able to show genuine financial hardship. More information will be available soon.

A snapshot report of community consultation, including emerging themes, is available under ‘What We Heard’, and the Council report is available on Council’s website.

Background

The rating system for the last 30 years has been a minimum rate structure. Rates have been calculated solely on property value multiplied by the ad valorem (cents in the dollar) rate according to the rate category, and subject to a minimum amount if the calculated amount falls below the minimum threshold for that category. It had several issues including growing unfairness between (and within) rate categories and a high number of assessments on the minimum rate (Council is allowed up to 50% of assessments to be on the minimum amount within a single rate category).

As well, the 2023/24 financial year is the first time the new land valuations from July 2022 provided by the NSW Valuer General will be used. Some people’s land value has dramatically increased. For context, the overall increase in land value across Wollondilly Shire is more than 80%. With rates tied to land value, staying on the minimum rate structure would have meant that more than half of the total rate increase would have been concentrated on about a quarter of property owners.

The New Rate Structure

There are two main changes to the rate structure:

  • Reducing the number of rating categories from seven to four by eliminating sub-categories.
  • Changing the way rates are calculated to include a uniform ‘base rate’ plus a proportion determined according to the property’s land value as evaluated by the NSW Valuer General.

Introducing a ‘base rate’ acknowledges there are costs for common services and administration from which we all benefit. Council is not allowed to charge a flat rate across the board, but having a base rate reduces the impact of property value on rates, it flattens the rate structure, and reduces the difference between the highest and lowest rate levy.

Importantly, Council’s rate revenue will not increase by more than the 3.7% cap set by the Independent Pricing and Regulatory Tribunal (IPART).

More Information

For more information please contact Council’s Revenue Team on 4677 1100.