Rating and Revenue Policies

Rating Structure

Council’s rate revenue is regulated by the NSW Government and this arrangement is known as rate pegging. Rate pegging limits the amount that Council can increase its total annual rate revenue from one year to the next. Any increases above the rate peg, require approval by the Independent Pricing and Regulatory Tribunal (IPART) and are known as a Special Rate Variation.

Following extensive consultation with the community over a number of years and Council received formal approval from IPART on its New Rates application in May 2021. The New Rates application included:

• Retaining the expiring former Hurstville City Council’s Special Rate Variation;

• Increasing Council’s total rate income over the next five years to maintain service standards (5.8% per year for five years);

• A single, fair, equitable and consistent rating system for the entire Georges River Area; and

• Identifying $12 million in ongoing savings over the three year period from 2022/23 to 2024/25 ($4 million per year).

Alternatives to the New Rates application were explored with the community and Council. There was no support for a larger increase, a reduction in services and/or reduction of staff levels. The rate increase was the only feasible option to maintain existing levels of service. As without the rate increase, Council’s financial position was significantly challenged. Any new/expanded services, a larger capital works program or additional staffing level would require an additional Special Rate Variation, or corresponding reduction to the current service portfolio/levels to offset.

Land Values

Each year, the annual rate revenue distribution is calculated based on a property’s latest valuation received from the NSW Valuer-General. Council cannot make and levy a rate in respect of a parcel of land unless furnished with a valuation of that land under the Valuation Land Act 1916.

Every three years, the NSW Valuer General provides new land values for Council to use in calculating and distributing rates. For 2023/24 rating year, Council will be applying the new land values undertaken on 1 July 2022.

Changes to land valuations will impact on the distribution of rates payable by individual households or businesses. Though, increases/decreases in land values do not necessarily lead to similar increases/ decreases in rates, as land values are used to fairly distribute and calculate Council's annual rate revenue across ratepayers.

Categorisation of land for the purposes of ordinary rates Council determines rating categories for rating purposes in accordance with Sections 514 -529 of the LG Act and Local Government (General) Regulation 2005 (the Regulations).

Non-rateability

Council deems land to be non-rateable strictly in accordance with Sections 555 and 556 of the LG Act. Residential and business categories

The LG Act only allows four available categories for rateable land, including farmland and mining, which are not applicable within the Georges River Council LGA. All rateable land within this LGA are categorised as either residential or business. As noted within Section 518 of the LG Act, land that does not satisfy the criteria to be deemed residential, farmland or mining will be categorised and rated as business. The business category applies to land that is used for industrial and commercial operations and can also include car spaces and storage lots.

Council will use the plans approved under a development application or building application as a bases for determining the initial categorisation of a property, unless other more relevant information is available. The ratepayer will be advised through the issue of an annual or supplementary rate notice.

Mixed development

There are instances where a property is used for both residential and business purposes. If applications are submitted to and approved by the Valuer General NSW, Council will be advised of the residential and business rate portions to enable a mixed rate to be levied.

Change of category for rating purpose

A review of the categorisation of land for rating purposes may arise in response to a ratepayer request (application), Or because Council elects to review one or a number of parcels of land or because it believes that the current categorisation may be incorrect.

Council may request further information and or access to inspect the property to assist with making this determination.

Applications for a change in categorisation of land for rating purposes must be made on the approved form that can be found on Council’s website.

The ratepayer will be formally advised in writing of the outcome and where applicable, will receive an annual or supplementary rate notice.

Ratepayers with a property that is used for both a business and residential purpose should also make an application for a change in categorisation of land for rating purposes on the approved form if they wish to change from one category to mixed use rating.

Rating new parcels of land

Council will, upon registration of a new strata plan or deposited plan re-rate the property(s) from the first day of the subsequent financial quarter in which the subdivision or consolidation was registered. Conversely, rates will be reversed off the original (parent property/s) from the last day of the financial quarter in which the plan was registered.

The application of pro-rata rates and charges is consistent with quarterly instalment billing as per Section 562 of the LG Act. The Council will issue a notice for the new parcel/s for the current rating year.

Postponement of rates

Where a property is used as a single dwelling but, due to zoning or permitted use has a land value that reflects the potential use rather than the actual use, we will provide a postponement of rates in accordance with Section 591 of the LG Act. These postponed rates, together with the accrued interest, are abandoned after five years unless the use of the property changes; at that point the rates become payable

Aggregation of land parcels (lots) for the purposes of ordinary rates – rating of car spaces and storage lots Where a lot for a strata unit includes part lots for car and/or storage lots, only one rateable valuation exists and therefore only one rate is calculated on the total value of the unit, car and storage lots.

Where car and/or storage lots are separately titled, they attract their own unit entitlement and rateable value separate from the strata unit. In this circumstance, Council may allow the rateable values to be aggregated and a single rate to be levied on the combined rateable value in accordance with Section 548A of the LG Act, subject to the limitations below.

• All lots are used in conjunction by the occupier of the unit (the Lots are not leased out separately);

• The ownership of each lot is exactly the same on the certificate of title;

• The lots are within the same strata plan;

The levying of rates on the combined rateable value will commence from the subsequent financial quarter following receipt of the application and payment of the applicable fee.

Refund of additional payments

Refunds may be made on request for overpayments. Refunds for payments made in advance for instalments may be subject to a refund fee.