How are my rates calculated?
Your rates are based on your property valuation and rating category. Properties are categorised as either Residential, Business or a business sub-category (Manly CBD, Warringah Mall, Warriewood Square, Strata Storage Units), or Farmland based on the property’s characteristics and use.
For each rating category we set an ad valorem rate (an amount of cents charged for every $1 of land value) and a minimum rate where appropriate. Your rates will be the higher of the minimum rate or your land value multiplied by the ad valorem rate (divided by 100 to convert the rate from cents to dollars).
A minimum rate applies on properties whose land valuation is equal to or lower that the land value cut-off threshold. The land value threshold to determine whether a minimum or ad valorem rate applies is determined by a ratio of the minimum rate and the ad valorem rate being: Minimum rate divided by the ad valorem rate = land value threshold. Properties with valuations equal to or lower than the land value threshold will pay the minimum rate and properties whose land value is greater than the threshold will pay the ad valorem rate.
Business properties within the Manly and Balgowlah business centres also pay an additional Special Rate to fund higher levels of service and specific works within these business centres. These Special Rates are also calculated based on your land value multiplied by an additional ad valorem rate (divided by 100 to convert the rate from cents to dollars). There is no minimum amount payable for Special Rates.
Rates are set by the Council each year through our annual budget process, with changes in total rates income capped by the IPART's rate peg (based on their measure of price and productivity changes over a year for an average Council).
How much has my Rates and Annual Charges changed?
Does everyone with the same land values pay the same rates?
All ratepayers in the same category or sub-category with the same land value pay the same for the same level of Council services.
How is land value calculated?
The NSW Valuer General is responsible for determining land valuations and provides these valuations for councils to use when assessing rates. Council cannot amend these land valuations and must rely on the valuations supplied by the Valuer General.
How can I find out my land value?
I disagree with my land value. What do I do?
If you have concerns relating to your new property valuation, you can lodge an objection online with the Valuer General or contact them on:
- Phone: 1800 110 038
- Website: www.valuergeneral.nsw.gov.au
- Email: firstname.lastname@example.org
If the Valuer General amends your land valuation they will advise Council of the new valuation relating to your property and if required your rates will be amended.
Can Council increase my rates?
The Independent Pricing and Regulatory Tribunal (IPART) annually reviews council rates and charges and sets the maximum increase councils can apply to their general income from these charges.
This cap is called the ‘rate peg’ and IPART considers inflation driven cost increases to Council, like fuel, electricity and construction materials, in determining the appropriate rate peg each year. This increase ensures councils can maintain existing services and infrastructure at sustainable levels.
Councils can apply to IPART for special variations to the rate peg.
More information on the rate peg is available on the IPART’s website.
For 2023/24 the IPART approved rate peg is 3.7%.
Why have my rates gone up or down more than the IPART rate peg?
The increase allowed by IPART relates to council income in total - not to individual rates assessments.
Individual rates are also affected by other factors such as changes to land valuations which are independently assessed every three years.
Overall council income can’t exceed more than the rate peg increase (or a special rate variation approved by IPART) but land valuations may change how that increase is distributed across the council area.