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:
- determining the total amount of rate revenue required
- 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: .00180907¢
|
Differential Rate
|
Commercial: .00217088¢
Industrial: .00217088¢
Vacant Land: .00271361¢
Derelict Land: .00542721¢
|
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)
