Rates and Charges Q and A for 2018-2019
Council rates fund the following local essential services which benefit the community:
- Road and FootpathsParks and Reserves
- Waste and Recycling
- Land Use and Conservation Planning
- Community Buildings
- Leisure Facilities
- Aged and Disabled Services
- Renewable Resources
- Child, Youth and Family Care
- Economic Development
- Fire Prevention
- Community Grants
- Social Planning
- Events and Festivals
- School Crossings
The Annual Rate Notice will be posted late July 2018
Residents can receive rate notices via Australia Post mail or can apply to receive their notice by email via the Email me Rates page.
This is one of the most asked questions in each rating year.
Each Council within Victoria has different financial commitments ie: different budget requirements for capital works, ongoing costs, proposed works that are needed to provide services across the municipality. As well as this, valuations in different municipalities vary, some higher than others and some more diverse. Some municipalities have a wider range of properties which means different budget requirements. The rate in the dollar is applied to the valuation (CIV) and this determines what share of the budget each property contributes via rates.
Every year, Councillors, CEO and Finance Team review costs, expenditure and needs of the Council and set a rate in the dollar for residential, industrial and commercial properties.
The rate in the dollar is then multiplied by the value of a property (CIV) to establish the General Rate amount to be paid by each property owner.
General rates are added to any municipal, garbage charges set by a council and the Fire Service Levy to determine the total rates payable on a property.
Rising property values usually result in the adjustment by council of a lower rate in the dollar to offset the overall increase in property values.
Councils don't collect extra rate revenue as a result of a revaluation.
The municipal charge for 2018/2019 is $159.10. This flat charge is applied to each rateable property, irrespective of the valuation, to cover administrative costs to operate Council, including asset management, information systems, corporate records, human resources and governance services.
Fees relating to rates management, including:
- Paper handling
- Reminder notices/ Supplementary Valuation notices
This levy is imposed by the Victorian State Government. All Councils across Victoria are required to collect this money on behalf of the State Government.
This is State Government tax on all waste going into landfill which Councils pay on municipal waste. Councils collect this State Levy from ratepayers via garbage charges for kerbside collection services to dispose of waste into landfill.
Increases in waste collection and disposal service annual costs have resulted in an increase in this charge. An increase in the Victorian Government landfill levy for waste disposed of at landfill sites further increases this cost.
The recycling costs have increased due to China not importing recycling materials in the future.
Garbage charges are not subject to rate capping.
The waste charge is based on the size and type of bin.
Previous Years and Current Years Bin Charges
Residential 120L bin $321.50 $353.70
Residential 80L bin $256.00 $281.60
Green Waste 240L $135.50 $138.55
A list of current bin charges can also be found at Bin Information page.
On 1 July 2013, the Victorian Government introduced a property based levy to fund the Metropolitan Fire and Emergency Services Board (MFB) and the Country Fire Authority (CFA). This Fire Services Property Levy replaces the previous insurance-based funding model as recommended by the Victorian Bushfires Royal Commission following on from the 2010 Black Saturday tragedy.
The Fire Services Property Levy applies to all rate assessments property (land and buildings) and includes a fixed component as well as a variable charge assessed on the capital improved value (CIV) of the property. There are different levy rates depending on the location of the property and the property type.
The levy is collected by local Councils annually and if you are currently receiving a Pension Rebate off your Council Rates you will automatically receive a rebate of the Fire Service Levy as determined by the State Government.
The FSL charges are State Government charges and are calculated and advised to all Councils on an annual basis.
See www.firelevy.vic.gov.au for further information.
Currently, there are only two properties in Frankston City classified as derelict. There are a number of other properties in the municipality that should be classified as derelict and Council has proposed to revise the definition of ‘derelict’ properties to improve the municipality’s streetscape and give property owners a strong incentive to maintain the appearance of their property.
- 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)
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
- Centrepay (taken from your Centrelink payments)
- By phone
- Using Post Billpay
- In person
- By mail
The option to pay rates in full by 15 February was discontinued in the 2014/2015 financial year (four financial years prior). Ratepayers can pay in four instalments, all instalments in advance or by nine (9) instalments (by direct debit only). Payments can be made in advance at any time.
This change was consistent with many other municipalities in Victoria – as more regular billing allows many ratepayers to better manage their payments.
If you wish to pay your rates in one payment the best time is before 30th September. You are effectively paying your first instalment plus your second, third and fourth instalments in advance.
There are pending changes to the Local Government Act that could make the option to pay in full as a mandatory for Councils to offer in future years.
All changes to direct debit accounts must be in writing via email or on the prescribed form (preferred - available on our website)
Rate Capping has been introduced by the State Government as of 1st July 2016. The rate cap does not apply to other charges such as bins or the Fire Service Levy.
The rate cap for 2018/2019 is 2.25%
- Total Rate Revenue 2016/2017
- Plus 2.0% rate cap increase for 2017/2018
- Total Rate Revenue 2017/2018
The 2018/2019 Annual Budget includes a capped increase in the average base rate of 2.25%. The Victorian State Government’s introduction of rate capping will restrict Council’s ability to deliver new initiatives and major projects in the future.
Previous yeas cap (based on CPI)
Rate capping only applies to the General Rate and the Municipal Charge. The rate cap does not apply to other charges such as bins or the Fire Service Levy.
Victorian State Government requires that properties are revalued and Councils must use these values to determine how much each property contributes via rates. Rate percentage increase is dependent on any movement in property values over since the last valuation.
Council has not cancelled any services and will continue to maintain its present level of service. It will be necessary for Council to investigate and look at its cost components in the future to ascertain if all current services can be maintained.
This is currently unknown, however in the future Council may be forced to review spending.
Rate capping may decrease the amount of rate arrears.
The negative effects of rate capping would be the possibility of Council not being able to perform any additional works, functions or maintenance to the same level in the future.
No affect what so ever.
No. The Pension Rebate amount for Council’s rates is set by the State Government. The rebate has increased from $223.80 in 2017/2018 to $229.40 for 2018/2019 rating year. The increase is based on the CPI% increase each year. The Pension Rebate for the Fire Service Levy is still $50.00 and has not been increased since it was implemented on 1 July 2013.
Council is required under the Local Government Act 1989 to conduct a revaluation of all properties within the municipal boundaries every two years (each even year).
- Date of Valuation - This is the date the valuation is based on. The current valuation figures are valued as at 1 January 2018 and become effective from 1 July 2018 for the 2018/2019 financial year.
- Effective Valuation Date – This is the date the valuation was first used for rating purposes.
Starting from 2019/2020 year, all properties will be revalued each year as at 1 January and become effective for rating purposes from 1 July that same year (previously revalued every two years, now every year)
This is consistent for all Councils in Victoria.
What do the different valuations mean?
- Site Value (SV) – Value of Land Only
- Capital Improved Value (CIV) – Value of Land and ALL fixed improvements such as buildings, garages, pools, tennis courts etc.
- Net Annual Value (NAV) – Reflects the annual rental value of the property net of fixed costs (Residential Properties reflect 5% of the CIV)
Council valuations are for rating purposes and may differ from a bank or real estate market valuation.
The site value is included in the CIV. Do not add the Site Value and CIV together.
- Market increases in your area
- Comparative sales
- Improvements and extensions
Councils don’t collect extra rate revenue as a result of a revaluation.
The property valuation used for rating purposes (CIV). This value determines what share of the budget each property contributes via rates.
To help reduce postage and printing costs, please register to receive your Rate Notice by email.
Have a prior Rate Notice handy to quote your Assessment number.
Frankston City Council
30 Davey Street
P. 1300 322 322