How are Rates calculated?
Your rate amount is calculated by multiplying a property’s Gross Rental Value (GRV) or Unimproved Value (UV) by the rate in the dollar set by Council.
GRV – is a valuation of your property, determined by the Valuer General, as an estimate of the rental income you would receive if the property was rented for one year.
UV – is also determined by the Valuer General and is based on the value of undeveloped land.
Rate in the dollar is set by Council to ensure sufficient income is received to enable continued service delivery to the community.
Can I object to my property valuation?
If you believe the valuation of your property is incorrect, you can lodge an objection with the Western Australian Valuer General’s Office within 60 days of the issue date of your Rates Notice.
Please refer to the reverse side of your rates notice for contact details or visit the Landgate website here.
What are Financial Assistance Grants (FAGs)?
The Financial Assistance Grant Program is recurring funding that is received by local governments each year. The funding is provided under the Local Government (Financial Assistance) Act 1995. It consists of two components;
- A general purpose component that is distributed between the states according to population and
- An identified local road component.
The Shire of Esperance receives a higher amount than some other local governments mainly because we have the longest road network in WA. The general purpose funds will contribute to the provision of community services and infrastructure.
The funding has been allocated in accordance with the Shire of Esperance financial plans and budget.
If I calculate my rates I get a much lower amount than you are charging me. Why?
You are being charged what is known as the ‘minimum rate’.
This is a rate set by Council to reflect what is considered to be a reasonable contribution to the cost of Shire services and management.
If your Gross Rental Value multiplied by the Shire’s rate in the dollar means that your rates are less than the set minimum, then the set minimum is charged.
Why do I pay so much in rates for vacant land when I don’t receive any services?
All land is subject to the application of rates, including the Waste Rate. Vacant land is also valued differently by the Valuer General (VGO).
Rates are based on an assessment of the annual rental value of a property, known as Gross Rental Value (GRV) and is the responsibility of the VGO: a State Government agency. It is then multiplied by a rate in the dollar (the Shire’s responsibility) to provide the actual rates on a property. Vacant land does not have rental potential so the VGO calculates a synthetic rental value by using 3% of the market value of land.
What does GRV and UV mean?
Shire rates are levied on the values of the rateable properties provided by the Valuer General Office (VGO).
GRV, or Gross Rental Value, means the gross annual rental that the land might reasonably be expected to realise if let on a tenancy from year to year. A GRV is determined on the basis that the rental includes outgoings such as rates and other property expenses. This is applied to urban properties and these values are re-assessed every 5 years.
UV, or Unimproved Values, are used as the basis for the levy of rates for rural properties. UV properties are revalued every year. Market based UV’s are determined by reference to the land market at the date of valuation.
I've lodged an objection to my rates and have received a final notice. Do I have to pay?
Yes, rates must be paid as assessed by the due date.
Any reduction in rates as a result of a successful objection will be refunded.
If you do not make payment in full you will accrue interest on general rates and on Emergency Services Levy.
How do I lodge an objection to my valuation?
Your valuation (GRV or UV) is only one factor used to calculate your rates notice. The Valuation of Land Act 1978 (as amended) Part IV sets out how valuation objections may be lodged. A property owner may lodge an objection against the valuation of a property within 60 days of the date of issue of a rates notice. For information on how your values are calculated and how to lodge an objection, please visit Landagate's website landgate.wa.gov.au/valuations, or alternatively call Landgate Customer Service on +61(08) 9273 7373.
What happens to my rates if I build a new house, an addition or a pool?
When there are changes to your property that affect its valuation the Shire receives advice of the new valuation (and an effective date for the new valuation) from the Valuer General. An amended rates notice, called an interim rates notice, is then issued. An interim rates notice does not replace the original rates notice but is an additional charge.
Examples of where your valuation would be amended include:
- a new building has been built
- a pool has been installed
- a new room has been added
- a property has been demolished