FAQs

• A simpler structure which is efficient to administer, broadly uniform and easily understood 
• A fairer and more equitable structure overall, with all ratepayers paying a fair share for the cost of common services
• A rate structure that supports the NSW rating principles of ‘benefit’, being the extent to which those who receive the benefits of Council services also pay for those services and ‘ability to pay’, being the extent to which those who pay for Council services have the ability to pay for those services

Once properties have been categorised Council must choose the method of rate calculation, which can be either:

• Entirely on the land value of the property (i.e. using a rate-in-the-dollar set by Council and multiplying it by the land value provided to Council by the NSW Valuer General)
• Entirely on the land value, but subject to a minimum amount which overrides the rate calculation if the rate calculated on the land value is below the set minimum rate (this is Council’s current rate structure)
• A combination of the property’s land value and a fixed amount per property (known as a base rate)

Council has a legislative requirement to ensure that the rateable valuation is the primary and predominant basis of rating and that the incidence of the rate burden is split differentially according to the value of rateable land.

Council can choose a rate structure with a high base amount which may successfully flatten the incidence of rates across all ratepayers. This would be achieved by reducing the magnitude of variations in rates levied between different properties of varying rateable valuation. However, the predominant method of rate calculation must be based on the rateable valuation.

The base rate is a fixed amount per property that represents the basic administrative costs and costs of common services from which all properties benefit, regardless of their rateable value.

The base rate may yield up to 50% of total income from a rate category or sub-category and the remaining yield must be calculated based on the land value by multiplying an ad valorum rate (rate in the dollar) by the land value. 

Council is proposing to:

• Remove the Residential Town Centre and Rural Residential sub-categories and amalgamate all residential land into one Residential rate category
• Remove the Business Light Industrial sub-category and amalgamate all business land into one Business rate category
• No changes are proposed for the Farmland rate category
• No changes are proposed for the Mining rate category

Section 493 of the Local Government Act 1993 provides that there are 4 categories of rateable land, being: farmland, residential, mining and business.

The rate categories may, at Council’s discretion, be divided into sub-categories in accordance with section 529 of the Local Government Act 1993.

Council’s current 2022-2023 rate structure has 2 residential sub-categories and 1 business sub-category.

For 2023-2024 Council is proposing that all land be categorised as farmland, residential, mining or business and that no land be sub-categorised.

Farmland

Section 515 of the Local Government Act 1993 provides: 

(1)  Land is to be categorised as farmland if it is a parcel of rateable land valued as one assessment and its dominant use is for farming (that is, the business or industry of grazing, animal feedlots, dairying, pig-farming, poultry farming, viticulture, orcharding, bee-keeping, horticulture, vegetable growing, the growing of crops of any kind, forestry or aquaculture within the meaning of the Fisheries Management Act 1994, or any combination of those businesses or industries) which—

(a)  has a significant and substantial commercial purpose or character, and

(b)  is engaged in for the purpose of profit on a continuous or repetitive basis (whether or not a profit is actually made).

Residential

Section 516 of the Local Government Act 1993 provides:

(1)  Land is to be categorised as residential if it is a parcel of rateable land valued as one assessment and—

(a)  its dominant use is for residential accommodation (otherwise than as a hotel, motel, guest-house, backpacker hostel or nursing home or any other form of residential accommodation (not being a boarding house or a lodging house) prescribed by the regulations), or

(b)  in the case of vacant land, it is zoned or otherwise designated for use under an environmental planning instrument (with or without development consent) for residential purposes, or

(c)  it is rural residential land.

Mining

Section 517 of the Local Government Act 1993 provides:

Land is to be categorised as mining if it is a parcel of rateable land valued as one assessment and its dominant use is for a coal mine or metalliferous mine.

Business

Section 518 of the Local Government Act 1993 provides:

Land is to be categorised as business if it cannot be categorised as farmland, residential or mining.

The rate category is declared on the rates and charges notices issued in July each year. 

An application for change in rate category can be made to Council. Applications are available on Council’s website at:

https://www.wollondilly.nsw.gov.au/home/features/rates/application-for-change-in-rating-category/

Section 526 of the Local Government Act 1993 provides:

(1)  A rateable person who is dissatisfied with—

(a)  the date on which a declaration is specified, under section 521, to take effect, or

(b)  a declaration of a council under section 525, may appeal to the Land and Environment Court.

(2)  An appeal must be made within 30 days after the declaration is made.

(3)  The Court, on an appeal, may declare the date on which a declaration is to take effect or the category for the land, or both, as the case requires.

Council has considered several rate structures and modelling of a high base rate structure approaching 50% yield of total residential rate income will cause very little redistribution of the rates burden between the current Residential Town Centre and Rural Residential sub-categories.

Where land values vary greatly within categories as is the case in some areas of Wollondilly a base rate structure can successfully flatten out the incidence of rates across ratepayers. 

An estimate of 2023-2024 average rates for residential assessments calculated using the current rate structure and the proposed base rate structure is below. 

Please note the above are estimates only and subject to change until the final 2023-2024 rates are adopted by Council. Displayed estimates are based on the average rate and will vary on individual assessments.

Most ratepayers will be affected by the proposed change. Whilst the proposed change will not increase the overall amount of rates raised by Council, a new rate structure will lead to changes between individual rate assessments.

This means that rates payable on some land will increase by more than the permitted IPART increase, and rates payable on some land will increase by less than the permitted IPART increase, or even decrease. 

Due to variances in new rateable land values this is unavoidable and maintaining the current rate structure will also result in variances between individual properties. The proposed new structure will, however, create a more equitable assessment of rates between all rate assessments and provide a simpler structure which is more efficient to administer, broadly uniform and more easily understood than Council’s current rate structure.

Modelling of a base rate structure approaching 50% yield of total residential rate income indicates that it would flatten the incidence of rates across all ratepayers, by reducing the size of variations in rates levied between different properties of varying rateable value.

The below charts display the incidence of rates based on the varying rateable valuations:

• if the current rate structure was maintained for 2023-2024
• if the proposed base rate structure was adopted for 2023-2024.

Please note that the below charts are estimates only and individual rate assessments are subject to change until Council has adopted the 2023-2024 rates and charges.

Current Residential Town Category

Current Rural Residential Category

Current Residential Category 

Current Farmland Category 

Current Business Category 

Current Business Light Industrial Category 

Current Mining Category 

Some land is exempt from rates. The non-rateable provisions are detailed in sections 555 and 556 of the Local Government Act 1993. If land meets an exemption provision application can be made to Council in writing. An application must include the provision of the Local Government Act 1993 that application is made under and how ownership and use of the land meets that provision.

No, Council’s total rate income can only increase by the percentage (known as the rate peg) set by The Independent Pricing and Regulatory Tribunal (IPART). For 2023-2024 the rate peg is 3.7%.

The rateable valuations are determined independent to Council by the NSW Valuer General and Council cannot influence the valuation process.

A combination of land value and Council’s rate structure determines how Council’s total rate income will be collected from each property owner.

New land values are provided to Council by the NSW Valuer General every 3 years and significant fluctuations in your land value will impact the amount of rates you pay compared to other properties but this will not result in Council receiving any additional increase in total income above the percentage approved by IPART.

All rateable valuations are provided to Council by the NSW Valuer General who is an independent statutory valuing authority. Information about the NSW Valuer General’s valuation process and how to request a review will be issued with valuation notices. 

Further information is available at:

Website:         www.valuergeneral.nsw.gov.au

Phone:            1800 110 038

On-top of the mandatory pensioner concession rebate of $250 Council also provides eligible pensioners with a further voluntary rebate of $45, 50% of the core domestic waste management charge and the stormwater management charge. Council is proposing to continue to offer these rebates for 2023-2024.

Any pensioner who suffers genuine financial hardship as a result of the proposed change should contact Council’s Revenue Team to discuss their individual circumstances. 

Council acknowledges that any rate increase may adversely impact some ratepayers. Council has a Hardship Policy in place to assist ratepayers should they have difficultly making payment of rates. Council’s Hardship Policy can be found at:

https://www.wollondilly.nsw.gov.au/home/features/rates/rating-policies/

No, zoning is what determines what land can be used for. Rate categorisation is a category used for rating purposes only and does not impact the permitted use for development purposes. 

Feedback can be submitted until 5:00pm 17 May, 2023.

• Head to Your Say Wollondilly www.yoursay.wollondilly.nsw.gov.au
• Via email to council@wollondilly.nsw.gov.au
• Via post to Wollondilly Shire Council CEO, PO Box 21, Picton NSW 2571
• Hand delivered to Council’s Customer Service Centre, 62-64 Menangle Street, Picton

Council will consider submissions at their May 2023 meeting.