Calculating your rates and charges
How we calculate rates
Step 1: We work out how much money we need to raise from rates to pay for the services we will deliver.
Step 2: We add up all the valuations of every residential, commercial and industrial property in Port Phillip.
Step 3: We calculate the rate in the dollar for each type of property. Capped rates revenue ÷ value of properties = rate in the dollar
In 2025/26 we need to raise $141.3 million in general rates income. The total value of all properties is $75.8 billion.
The differential rates for each property type for 2025/26 are in the table below. The vacant type is always 3 times the residential type. The derelict and unactivated retail types are always 4 times the residential type.
| Differential rate type | Rate in the dollar for 2024/25 |
| Resident | $0.001796 |
| Industrial | $0.002183 |
| Commercial | $0.002159 |
| Vacant | $0.005388 |
| Derelict | $0.007184 |
| Unactivated retail | $0.007184 |
Differential rating helps maintain fairness and consistency of rates across property classes. It helps to create a fairer system.
Our Rating Strategy (PDF 1.1 MB) ensures people are charged a fair contribution for services.
Separate waste charges
Your rates bill includes a separate waste charge to help manage the costs of delivering essential and highly valued waste services. You may also have a charge for the Food and Garden Organic Waste (FOGO) service. Many other Melbourne councils take the same fee-for-service approach with waste.
2025/26 charges
- All rateable properties have the waste charge of $230.30. (Up by $26.70 or 13.1 per cent)
- Properties that have a kerbside FOGO collection will also pay $77 for this service. (Up by $9 or 13.2 per cent)
Your rates bill
On your bill expect to find:
- General rates charge (Capital Improved Value multiplied by the relevant differential rate)
- Waste charge of $230.30
- Emergency Services and Volunteers Fund (formerly the Victorian Government Fire Services levy)
You may also have:
- Kerbside FOGO bin service charge of $77
- 240-litre waste bin surcharge $290
Your bill will also include concessions or rebates you're entitled to.
Read more about Your rates notice.
Emergency Services and Volunteers Fund increase
The Emergency Services and Volunteers Fund (ESVF) replaced the Fire Services Property Levy on 1 July 2025.
This new levy will be collected by all councils and included in rates notices.
This is a State Government tax/charge, NOT a council-imposed fee.
For 2025/26, the Victorian Government is using the levy to raise approximately $37.7 million from Port Phillip ratepayers. This is a sharp 57 per cent increase from $24 million in 2024/25. Changes include:
- a 3 per cent increase to the fixed component of the levy
- a 64 per cent increase to the variable component for industrial properties
- a 100 per cent increase to the variable component for residential and commercial properties.
The result is:
- A $500,000 apartment will see its levy rise from $175.50 to $222.50, a $47.00 or 27 per cent increase.
- A $1.7 million detached house will see its levy rise from $279.90 to $430.10, a $150.20 or 54 per cent increase.
Got questions?
Contact the Victorian Government:
Tel: 1300 819 033
General Enquiries: State Revenue Office
Eligible CFA or SES volunteers may be eligible for a rebate. Visit Service Victoria to find out more.
What we do with rates and charges
The money raised through rates and charges is used to deliver quality services and manage $3.4 billion in infrastructure.
Every rate payer is provided a copy of our Rates Brochure (PDF 2.9 MB). The brochure has more detail on where and how we spend this income.
Below you'll find links to all our services and current projects. You can also view a breakdown of our spending per $100.