Rates and Charges Q and A for 2017-2018

General Rates and Charges

Payments and Payment Options

Rate Capping and Revaluations

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General Rates and Charges

What do my rates pay for?

Council rates fund many essential local services, including: 

  • Aged and disability services
  • Arts and cultural services including the Frankston Arts Centre and city-wide art projects and sculptures
  • Child, youth and family services, for example immunisation, meals on wheels and the Youth Hangouts
  • Community assets including sporting clubs, community centres and bridges
  • Drainage services
  • Events and festivals including the Frankston Waterfront Festival and Christmas Festival of Lights
  • Fire prevention activities
  • Libraries and learning
  • Parks and reserves development and maintenance
  • Roads and footpaths
  • Sports and leisure facilities
  • Waste and recycling services

When will my Rate Notice be sent and how?

Rate notices will be posted out at the end of July.

Residents can receive rate notices via Australia Post mail or can apply to receive their notice by email via the Email me Rates page.

I own properties in other municipalities, why are the rates different?

Each Council has different financial requirements (budgets needed) to fund new infrastructure projects, deliver services and maintain existing assets. Valuations also differ across suburbs.

How is the Rate in the Dollar calculated?

Each year Council reviews the budget in consultation with the community.

The rate in the dollar is established by dividing the rate budget by the number of rateable properties. Rates payable by property owners are determined by multiplying the value of your property (CIV) by the rate in the dollar.

Some other charges are also included in your Rate Notice including garbage charges which are set by Council and the Fire Services Property Levy which is set by the Victorian Government (these are not subject to Rate Capping).

Rising property values means a lower rate in the dollar. In the case of a revaluation year when valuations change Council is required to change the rate in the dollar to meet its budget requirements and meet rate capping obligations.

Councils don't collect extra rate revenue as a result of a revaluation.

How your general Rates and charges are calculated

What is the Municipal Charge?

The Municipal Charge is $152.55 this financial year and is the same for each property regardless of its value. This includes commercial, industrial and residential properties.

What does the Municipal Charge cover?

Fees relating to rates management, including:

  • Administration
  • Paper handling
  • Reminder notices/ Supplementary Valuation notices

What is the Landfill Levy and why do we have to pay it?

This is a Victorian Government tax on all waste going into landfill and is collected as part of the kerbside collection charge.

This is not a Council charge.

All Councils across Victoria are required to collect this money on behalf of the Victorian Government.

Why has the Garbage Charge increased?

Increases in waste collection and disposal have resulted in an increase in this charge.

An increase in the Victorian Government Landfill Levy for waste disposed of into landfill has further increased this cost.

Garbage charges are also based on the size and type of bin. A list of current bin charges are can be found at Bin Information page.

What is the Fire Services Property Levy?

The Fire Services Property Levy applies to all property and includes a fixed component as well as a variable charge on your properties value, type and location.

This is a Victorian Government charge and all councils are required to collect this levy on their behalf.

All funds collected are passed onto the Victorian Government. Council does not make any income from this levy.

If you currently receive a Pension Rebate on your council rates you will automatically receive a rebate for the Fire Service Levy of $50.00.

Why has the Vacant Land Differential Rate increased as from 2015-2016?

Council wants investment and development, rather than vacant residential properties remaining undeveloped for extended periods of time.

The Differential Rate is applied to encourage investment and development of vacant land.

Why has the Derelict Rate changed?

To encourage owners to maintain their properties to an acceptable standard.

Payments and Payment Options

What do the different valuations mean?

  • Site Value (SV) - Value of Land Only
  • Capital Improved Value (CIV) - Value of land and all improvements such as buildings, garages, pools, tennis courts etc.
  • Net Annual Value (NAV) - Reflects the annual rental value (Residential Properties reflect 5% of the CIV, commercial and industrial properties reflect the average annual rental amount)
  • The site value (SV) is included in the Capital Improved Value (CIV)

What are the payment options?

Council has the following payment option for ratepayers:

  • Direct Debit
    Pay in four instalments (Direct Debit and other methods): 30 September, 30 November, 28 February and 31 May
    Pay in nine instalments (Direct Debit only): Each month from September to May
  • BPay
  • Centrepay (taken from your Centrelink payments)
  • By phone
  • Using Post Billpay
  • In person
  • By mail

Why did the rate payment options change to 4 instalments?

Changes were made to align with other Victorian councils who have similar systems of payment and to make payments easier and more manageable for residents.

How do I change my direct debit details?

All changes to direct debit accounts must be made using the prescribed form.

Rate Capping and Revaluations

What is rate capping?

Rate capping has been introduced by the Victorian Government in 2016 and restricts the overall Council rate revenue to an increase of no more than 2.5 per cent.

Each year going forward the Minister for Local Government will set the rate cap which specifies the maximum increase in councils’ rates and charges for the forthcoming financial year.

Waste charges and the Fire Service Levy (FSL) are not subject to rate capping.

Why have my rates risen by more than 2 per cent?

Council is required under the Local Government Act 1989 to conduct a revaluation of all properties every two years.

All properties across Victoria have been revalued this year, so if your property value has increased by more than the average you pay a higher amount in rates. If your property value increased by less than the average, your rates will be lower.

Had rate capping been introduced in 2015 or 2017 when no revaluations were taking place, every property in Frankston City Council would have received a flat increase of 2 per cent plus the waste and fire services levy which is not capped.

Has the Council cancelled any services due to rate capping?

In 2016 Council has not cancelled any current services.

Will services be cancelled in the future?

This is currently unknown, however in the future Council may be forced to review spending.

What are the positive effects of rate capping for residents?

Lower rate increases.

What are the negative effects of rate capping?

Fewer funds for services and infrastructure including:

  • Fewer funds for capital works (new projects) and asset maintenance (infrastructure)
  • Fewer funds for service delivery to the community

Has rate capping affected the value of my property?

No. Your property is still valued alongside the current market.

Will rate capping change my pension rebate?

No. In fact, the rebate has increased from $218.30 for 2016-2017 to $223.80 in 2017-2018.

The pension rebate for the Fire Service Levy also remains the same as last year which is $50.00.

Pension Rebate amounts are set by the State Government.

What is the revaluation period and how does it work?

Council is required under the Local Government Act 1989 to conduct a revaluation of all properties every two years on the 1 January. 

These valuations will be used for the next two financial years which cover the 2016-2017 and 2017-2018 periods

The 1 January valuations will be used for rating purposes on 1 July 2016 (effective valuation date). This is consistent for all Councils in Victoria.

Council valuations are for rating purposes and may differ from a bank, real estate market valuation.

Property valuation is used for rating purposes (CIV).  This value determines the share of the budget each property contributes via rates.

What factors impact my property’s value?

  • Market increases in your area
  • Comparative sales
  • Improvements and extensions

Do the property revaluations increase the amount of rates collected by Councils?

No. Councils’ don’t collect extra rate revenue as a result of a revaluation

Contact Us

Frankston City Council
30 Davey Street
Frankston 3199
P. 1300 322 322
E. info@frankston.vic.gov.au

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