Rates Overcharge FAQs
What has occurred?
There has been an extremely minor overcharge for all Frankston City properties (both commercial and residential) regarding the collection of rates in the 2020/21 financial year.
How much was overcharged?
On average, each property was overcharged 53 cents with some properties overcharged as little as 2 cents.
How did this occur?
There was a minor calculation error in the number of properties assessed. Council officers discovered the error while preparing annual compliance documents for the Essential Services Commission – which administers the rate-capping system for Local government. The compliance documents are a requirement for all Victorian Local Government areas.
Is my property valuation correct?
Yes. It is important to note that Council’s rate in the dollar and valuations are correct and reconciles to the rate revenue adopted in the 2020/21 Annual Budget.
How will the overcharged amount be refunded?
As a ratepayer, you don’t need to do anything. The overcharged amount will be credited back to you and appear on your next rates instalment notice. If you paid your rates in full, your credit will appear on your 2021/22 annual rate valuation notice.
Do I have to alter my direct debit?
No, your next debit will not be impacted in any way.
What was the total amount overcharged for all commercial and residential properties in Frankston City?
About $30,000 (which is on average about 53 cents per rateable property) out of a total annual rate collection of $120 million.
Are there any other issues with rates calculations?
All other related charges listed on your Annual Notice are correct and true.
Apart from the credit to my rates notice, has Frankston City Council done anything else to address this?
Council has put processes in place to ensure this never happens again.
How has the Essential Services Commission viewed this matter?
In a Media Release available on the Essential Services Commission website, the Commission’s executive director of pricing, Marcus Crudden, stated: “Three councils – Darebin, Frankston and Pyrenees – were slightly over but had reasonable explanations for how the errors occurred and have taken steps to address the mistakes and make sure ratepayers are not detrimentally affected.”
Where can I get more information about this?
Frankston City Council has provided a highly detailed response to the Essential Services Commission. The response can be read on Page 6 of the Essential Service Commissions Council Rate Cap Compliance 2020 – 21 Report, which is available online here.