Rates and Charges Q and A for 2019-2020

General Rates and Charges

Payments and Payment Options

Rate Capping and Revaluations

Centralisation and Annualisation

Valuations 

Land Tax and Objections

Contact Us

General Rates and Charges

What do my rates pay for?

Council rates fund the following local essential services which benefit the community:

  • Aged and Disabled Services
  • Arts
  • Child, Youth and Family Care
  • Community Buildings
  • Community Grants
  • Drainage
  • Economic Development
  • Events and Festivals
  • Fire Prevention
  • Governance
  • Land Use and Conservation Planning
  • Leisure Facilities
  • Libraries
  • Renewable Resources
  • Road and Foot paths Parks and Reserves
  • School Crossings 
  • Social Planning
  • Waste and Recycling

When will my Rate Notice be sent and how?

The Annual Rate Notice will be posted August 2019

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?

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.

How is the Rate in the Dollar calculated?

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.

How your general Rates and charges are calculated

What is the Municipal Charge?

The municipal charge for 2019/2020 is $163.10. 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.

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 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.

Why has the Garbage Charge increased?

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

                                            2018/2019                 2019/2020

Residential 120L bin           $353.70                     $380.20

Residential 80L bin             $281.60                     $302.70

Green Waste 240L             $138.55                     $145.50

A list of current bin charges can also be found at Bin Information page.

What is the Fire Services Property Levy?

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.

Why has the Derelict Rate changed?

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.

Payments and Payment Options

What are the payment options?

  • BPay banking
    Pay from your bank account or credit card by quoting Biller Code 1966 and the BPAY Reference Number on your rate notice
  • Phone by credit card
    Phone 1300 721 138 to pay by MasterCard or Visa
  • Mail 
    Attach the barcoded remittance slip from your rate notice along to your cheque or money order (made payable to Frankston City Council) and mail to:
    Frankston City Council
    PO Box 490
    Frankston 3199 
  • Centrepay by Centrelink
    your rates can be deducted from your Centrelink payments using this form (575KB) which should be submitted to info@frankston.vic.gov.au . If you have any problems completing this form please contact the Frankston City Council Rates department.

Payment Plan

If you are experiencing payment difficulties and don't believe you can meet your upcoming rates payment, you can apply to enter a payment plan. This agreement can be made for smaller and regular payments with the balance being paid by the end of June.

What happens next?

We will assess your application. If approved, we will send you a confirmation letter with a payment schedule within 5 business days. The payment schedule will have the due dates for your payments.

You do not need to wait to receive your confirmation letter. You should start paying from the date you chose on your payment plan.

Interest will be charged to all late payments after the respective annual or quarterly instalment due dates. This is in accordance with Section 172 of the Local Government Act 1989.

Instalment Options

Property owners have the option of paying Council rates by either four or nine instalments. To apply to pay by nine instalments you will need to apply for direct debit 

Financial Hardship

  • If you are unable to pay your rates and charges within the required timeframes, or experiencing financial hardship you can contact council to discuss payment options or apply for a payment plan

    By application, you can arrange a mutually acceptable rate payment plan, such as making small fortnightly or monthly repayments to suit your budget, and have your rates paid by the end of financial year.

  • Arrangement for Payment Plan (ATP) Form (303KB)  
    Applications for Financial Hardship assistance must be provided in writing, along with supporting evidence of hardship

Financial Assistance Available for Frankston City Residents and Ratepayers

Free Financial Counselling

A number of free and confidential financial counselling services are available to support Frankston City residents and ratepayers who need assistance with their financial affairs.

For more information:

  • Better Place Australia (Formerly FMC Mediation and Counselling Victoria) Ph: 1800 639 523

  • The Good Shepherd Ph: 1300 765 595

Why did the Rate payment options change?

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.

How do I change my direct debit details?

All changes to direct debit accounts must be in writing via email or on the prescribed form (preferred - available on our website)

Rate Capping and Revaluations

What is rate capping?

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 2019/2020 is 2.5%

For example:

  • Total Rate Revenue 2016/2017
    $82.17 million
     
  • Plus 2.0% rate cap increase for 2017/2018                 
    $1.63 million
     
  • Total Rate Revenue 2017/2018                                      
    $83.80 million

The 2019/2020 Annual Budget includes a capped increase in the average base rate of 2.5%. 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)

2017-2018                 2.00%
2018-2019                 2.25%
2019-2020                 2.5%

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)

Why are my rates more than 2.5% compared to last year?

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.

Has the Council cancelled any services due to rate capping?

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.

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?

Rate capping may decrease the amount of rate arrears.

What are the negative effects of rate capping?

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.

Has rate capping affected the value of my property?

No affect what so ever.

Will rate capping change my pension rebate?

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 $235.15 for 2019/2020 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. Total rebate for 2019/2020 will be $285.15.

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 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 2019 and become effective from 1 July 2019 for the 2019/2020 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.

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?

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.

Want to receive your Rates Notices online?

For your convenience, you can register to receive your Rate Notice by email.

Have a prior Rate Notice handy to quote your Assessment number.

Register or Log in to your online Rates Notice Account

Centralisation and Annualisation

What has changed?

The Valuer-General is now responsible for the undertaking of valuations (for rates, fire services levy and land tax purposes) in Victoria.  These valuations are now undertaken annually whereas previously they were undertaken every two years.

Why has it changed?

Valuations will now be current (annual rather than biennial), more accurately reflecting any recent change in values.

Centralising the valuation function with the Valuer-General will improve efficiency, consistency, transparency and cost effectiveness.

How will the change affect my rates?

Revaluations do not impact on Councils’ revenue which is determined by their budget process.  A revaluation simply reapportions the rate burden.  Annual valuations, rather than biennial valuations, are expected to improve equity and transparency in the distribution of rates.

How will complaints and objections be handled?

The first point of contact for Rates enquiries is the local council who issued the valuation and rates notice.   Council will deal with the enquiry in accordance with their customer service charter.  If they are unable to assist the ratepayer with their query, they may forward the query to the valuer appointed to undertake the valuation on behalf of the Valuer-General.

Similarly, the first point of contact for Land Tax Assessment enquiries is the State Revenue Office (SRO) who issued the notice.  The SRO will deal with the initial enquiry in accordance with their customer service charter.  If the SRO are unable to assist (where VGV is the valuation authority) they may forward the query to the valuer appointed to undertake the valuation on behalf of the Valuer-General.  If Council is the valuation authority SRO may forward the query to Council.

A person aggrieved by a valuation may object to that valuation in accordance with the Valuation of Land Act 1960.

Will yearly valuations increase land tax revenue?

Land tax revenue is reflective of changes in land values therefore by undertaking annual valuations land values will be current and equitable.  In a rising/falling property market, taxpayers will have a changing liability and will see their liabilities increase or fall every year instead of every second year.

Why has my Valuation decreased while my Rates have increased?

The total expenses the Council has estimated to fund operational running costs and complete projects and policies is divided into the total assessed CIV/NAV of rateable properties within the municipality to create a ‘rate in the dollar’.  The result of this could be that your CIV/NAV has decreased but the rate in the dollar has increased by a higher proportion which may result in an overall increase in the rate liability calculated.

Can I object to my Rates?

Ratepayers are not able to object to their Rates however they are able to object to their valuations.

Rate Capping

There is no connection between rating capping and an individual’s rates.  Rate capping applies to the total rate revenue for the whole municipality.

In some cases, ratepayers will find that their rates bill has changed by more or less than the current rate cap from the previous year.  There are reasons this may occur, including:

  • The valuation of the property relative to the valuation of other properties in the municipality;
  • The inclusion of other rates and charges not covered by the Government’s rate cap policy;  and
  • The application of any differential rate by council.

Valuations

What is a Valuation?

A valuation is an assessment of the market value of a property, at a specific date and in accordance with the Valuation of Lands Act 1960 legislation and the Valuation Best Practice Specifications.

Your property valuation is shown on your rate notice and rates are calculated on the Capital Improved Value (CIV) method, which is based on the estimated market value of the property including any improvements.

How are Valuations calculated?

The Valuer-General is now responsible for the undertaking of valuations (for rates, fire services levy and land tax purposes) in Victoria.  These valuations are now undertaken annually whereas previously they were undertaken every two years..

Revaluations yearly provides the opportunity for all valuations to be reviewed, taking into account the latest market evidence (sales and rents) for each property sector and district within a municipality and adjustments made to property valuations where appropriate.

This information is applied to individual properties throughout the municipality. Land size, location, house value, plus the added value of a garage, garden and other improvements are taken into consideration.

How will the new Valuation affect my Rates?

Rates are based on the combination of two variables, the rate in the dollar, and the valuation.  The rate in the dollar is multiplied by the valuation to determine your rates.

If the rate in the dollar remained constant, those properties which increased in value above the average increase would pay higher rates.  Conversely, those properties which decreased in value would pay lower rates.

If the rate in the dollar increased and all valuations decreased, the rates payable may increase.

If the rate in the dollar increased and all valuations were to be increased by the same percentage, the rates payable will increase.

Why has my Valuation changed this year when it changed last year?

Valuations are now carried out annually at 1 January each year.

Why has my Valuation decreased while my Rates have increased?

If the rate in the dollar increases and all valuations decrease, the rates payable will increase. 

The total revenue required has been determined by the budget process.  This along with the valuation is used to determine the rate in the dollar.  Where valuations may all decrease, if the rate in the dollar increases, then the rates payable will increase.

The property market has declined, why hasn’t my valuation decreased?

Valuations are relevant as at 1 January of each year.  These valuations are based on sales activity leading up to and close to this relevant date.  Any sales activity after this date may be considered but has less weight than the sales leading up to the date.  If market prices drop after the relevant date (1 January) this has no impact on the valuations returned.  It is approximately 8 months after the relevant date before rate notices are issued and market conditions can change markedly in this time.

What is a Supplementary Valuation?

  • A supplementary valuation is conducted as a result of one of the following:
  • Any change to the physical characteristics of the property
  • Any change to the use of the property
  • Where the property is now occupied by a charitable or religious institution and is no longer rateable, or the property is owned and occupied by a statutory body. 

Land Tax and Objections

Enquiries are VGVs responsibility?

VGV is the valuation authority for all municipalities in Victoria, apart from Mildura, Mornington Peninsula, South Gippsland and Hume.

As the valuation authority, VGV is responsible for returning annual valuations to Council for rating purposes.  The valuations are also used by the State Revenue Office (SRO) for land tax assessments.

Although VGV is the valuation authority, the SRO remains the rating authority for land tax and are responsible for issuing land tax assessment notices and taking initial enquiries from ratepayers.

The SRO may direct valuation enquiries to the appointed valuer where they are unable to assist.

What is a Valuer-General Adjustment?

An adjustment arising from a successful objection to a previous valuation which has been approved by the Valuer-General Victoria.

What if I don’t agree with the Valuation?

If a ratepayer is aggrieved by a valuation they may object by completing and lodging the Prescribed Form within two (2) months of the date of issue shown on the Land Tax Assessment Notice. 

Objections received after this date will not be considered.

It is advisable that the ratepayer first discuss their concerns with the State Revenue Office (SRO).  If the SRO is unable to assist they may forward the enquiry to the valuer appointed to undertake the valuation on behalf of the Valuer General.

I have lodged an Objection but I’m still awaiting the result?

The process may take a few months before the ratepayer is advised.

The ratepayer may contact the appointed valuer to check the progress of an objection.  Objections are required to be approved by the Valuer-General.

How do I Object / Lodge an Objection?

If a ratepayer is aggrieved by a valuation they may object by completing and lodging the Prescribed Form within two (2) months of the date of issue shown on the Land Tax Assessment Notice. 

The Prescribed Form is available from the SRO or alternatively at:

Land Tax Enquiries

All enquiries relating to Land Tax Assessment notices should be directed to the State Revenue Office in the first instance.  If the enquiry relates to the valuation, the SRO may refer to the appointed valuer.

Further information including the Land Valuation Objection Form is available at:

How do I Object to Council's Valuation?

If a ratepayer is aggrieved by a valuation they may object by completing and lodging the Prescribed Form within two (2) months of the date of issue shown on the Rate Notice. 

The Prescribed Form is available from Council or alternatively at

Does the Valuer-General Review the Objection?

Objections are processed by the appointed valuer.  Once the valuer has made their determination a recommendation is forwarded to the VGV for review and confirmation.

Contact Us

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

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