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Property valuation and calculating rates

Rates revenue helps fund the services Maroondah City Council provides to ratepayers and residents. This revenue is collected through charging rates to the owner or occupier of every property in the municipality. 

Council aims to charge ratepayers equitably - by using property values to fairly distribute rates charges.

Currently a property valuation is required every two years under the Victorian Government’s Valuation of Land Act (1960). Current rates are based on valuation levels determined by the market on 1 January, 2018. From 2019 the valuations will occur each year, therefore the next General Valuation will be conducted using levels set as at 1 January, 2019.

A General Valuation does not increase or decrease revenue for Council. It establishes the value of property relative to all other properties within the municipality, which is used to distribute the rate burden in a fair and equitable manner.

Council collects rates from residents and businesses in its municipality to help fund local infrastructure and services.

In determining the level of rate income, Council carefully considers:

  • the long-term vision, aspirations and needs of the community
  • capital works and services required throughout the year
  • all sources of non-rate income, such as government grants and fees and charges.

The Victorian legislation that enables councils to levy rates and charges is the Local Government Act 1989.

Rate in the dollar

Calculating how much each property owner pays in rates involves:

  1. determining the total amount of rate revenue required
  2. dividing this across the total value of all rateable properties to establish a rate in the dollar.

Total rate income required = (Total income required) - (Income from other sources)

Rate in the dollar = (Total rate income required) ÷ (Total Capital Improved Value of the municipality)

The current rate in the dollar in Maroondah is:

Rate type

Rate in the dollar

General Rate

Residential: .00190306¢

Differential Rate

Commercial: .00228367¢

Industrial: .00228367¢

Vacant Land: .00285459¢

Rates to be paid by each property

Council determines the amount to be paid in rates by applying the rate in the dollar to the assessed Capital Improved Value of each property. Hence the higher the property value, the more rates paid; the lower the property value, the less rates paid.

Rate to be paid by the property = (Rate in the dollar) x (Individual property CIV)

How your rates are calculated

In 2016, the Victorian Government introduced rate capping legislation to ensure that the overall rates collected by Councils are only able to increase by a capped percentage. Each year the Minister for Local Government sets this percentage cap.

The rate cap for 2018/2019 is 2.25%. This means the average property rate must not be more than 2.25% higher than last year.

What happens to my rates?

Rate capping restricts the increase to the average property rate . An increase in the total revenue may not increase your rates, as this depends on the value of your property.

Your rates are calculated based on your property’s value and the rate in the dollar. See how your rates are calculated in the tab above.

To understand rate capping, you can watch the Municipal Association of Victoria short film illustrating the State Government’s ‘Fair Go Rates System’:

https://vimeo.com/282423911

See more about the Sate Government's Fair Go Rates System

More information

Call us on 1300 88 22 33 or visit any of Council's service centres and our officers will be happy to help. 

25/05/2017
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