How your Rates are Calculated
Your Rates are based on two variables, the rate in the dollar, and the valuation of your property.
The formula for calculating rates is:
- Capital Improved Value (CIV) x Rate in the dollar = Rate payable
- CIV of the residential property = $A
- Rate in the dollar for residential properties = B cents
- A x B = $Rates
The ‘rate in the dollar’ is determined by calculating the total amount of rate revenue we require to maintain our services. We then divide this amount by the total value of the properties within the Frankston City Municipality (this amount changes every year).
It is a requirement of State Government that Councils use the below values to determine how much each property pays in Rates:
- multiply the value of your property by the 'rate in the dollar'
- add the Municipal charge, Fire Services Property Levy and Landfill Levy
- add the cost of any Waste Services
- subtract any Concessions (if eligible)
Property owners with lower-valued properties pay less in rates than owners of higher-valued properties however the rate is capped at 2.00% for 2020-2021.
If you own multiple properties in various municipalities, you may be wondering why some rates are less than others. This is because every Council has different budget requirements for capital works, proposed works and ongoing costs to maintain services across the municipality.
Please be aware that when you receive your rates notice, it is important NOT to add your capital improved value (CIV) and site value (SV) together as this is not how rates are calculated.
What are the additional charges?
Below is a brief explanation of the additional charges on your Rates Notice:
The municipal charge for 2020/2021 is $166.40 and is used to cover rates management costs such as administrative costs, paper handling, reminder notices ad supplementary valuation notices. All property owners pay the same fee regardless of their individual property valuations.
Fire Services Property Levy
On 1 July 2013, the State Government introduced a levy to help fund the cost of operating the Metropolitan Fire Brigade (MFB) and the Country Fire Authority (CFA); all Victorian Councils are required to collect the levy on the States behalf.
The fire services levy applies to all property owners of land and buildings and replaces the levy that was charged by insurance companies as part of your home insurance premiums.
The levy comprises two parts:
- a fixed fee which is increased annually by State Government and is different for residential and non-residential properties
- a variable fee which is based on the property's location, it's classification and Capital Improved Value
For more information please visit the State Revenue Office website.
This is a State Government tax that is placed on all waste going into landfill and all Victorian councils are required to collect this on behalf of the State Government.
This levy is included in the waste charges.
Waste Management Charge
The 2019-2020 Waste Management Charge for Domestic Properties (which includes the Landfill Levy) are listed below:
- $399.00 for a 120 litre rubbish and a 240 litre recycling bin service
- $317.70 for an 80 litre rubbish and a 240 litre recycling bin service
- $150.20 for a 240 litre optional garden waste bin collection service (green waste)
It’s important to note that the waste charge is not part of the rate cap and has increased due to:
- an increase in the annual costs of waste collection and disposal
- an increase in the Landfill Levy for waste disposed of at landfill sites
- an increase in recycling costs due to China not importing recycling materials