Calculating your rates and charges
We’ve changed how rates charges are worked out to ensure a fair rates burden on residents. The new Rating Strategy (DOCX 882KB) will ensure that people are charged a fair contribution for services. There are three important changes in the strategy:
- Changing from Net Annual Value (NAV) to the Capital Improved Value (CIV)
- Differential Rating for residential, commercial and industrial properties
- Separate waste charge
Changing from Net Annual Value (NAV) to the Capital Improved Value (CIV)
The NAV rating system saw rates distribution shifts from commercial and industrial properties to residential properties by up to $0.9 million since 2016/17, due to changes in property valuation. The valuation for the 2021/22 year saw commercial and industrial properties on average receive a rate decrease, while residential properties on average had a rate increase above rates cap due to the valuation shift – meaning that more of the rates burden shifted to residential.
Differential rating means we have a different rate in the dollar for different types of property. We use differential rating is used to maintain fairness and relative consistency in the distribution of rates between property classes and a ratepayer’s ability to pay. A higher rate is set for commercial and industrial properties because of the shift in the distribution of rates. Differential rating addresses this shift and helps to create a fairer rates system.
The differential rates for the 3 types of property for 2022/23 are:
- Residential $0.001615 of CIV
- Commercial $0.002062 of CIV
- Industrial $0.002073 of CIV
Separate waste charges and new services
We've introduced a separate waste charge so we can manage the costs of delivering essential and highly valued waste services. Many of our neighbouring councils have a separate waste charge. This year we're also rolling out a new service for Food and Garden Organic Waste (FOGO).
- All rateable properties will have the waste charge of $176.20.
- Properties which also have a kerbside FOGO collection will also pay $88.10 for this service.
Use the FOGO look up service to find out if your house or townhouse will be getting one of these bins.
Differential ratings for different property types, the change to CIV and the separate waste charge are the most fair and equitable way to manage the rates burden and the rising cost of waste management.
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. Revenue ÷ value of properties = rate in the dollar
We've calculated we need to raise $125 million in rates income from properties with a value of $63.5 billion. In the 2022/23 budget, the differential rates for each property type have been set:
Resident rate payers will pay $0.001615 x Capital Improved Value in general rates.
Commercial rate payers will pay $0.002062 x Capital Improved Value in general rates.
Industrial rate payers will pay $0.002073 x Capital Improved Value in general rates.
Your rates bill
On your bill expect to find:
- General rates charge (Capital Improved Value x relevant differential rate)
- Waste charge of $176.20
- Victorian Government Fire Services levy
You may also have:
- Kerbside FOGO bin service charge of $88.10
- 240-litre waste bin surcharge $221
Your bill will also include and concessions or rebates you're entitled to.
Read more about Your rates notice.
What we do with rates and charges
The money raised through rates and charges is used to deliver quality services and manage $3.2 billion in infrastructure.
This year we're focused on:
- new waste services
- increased investment in community assets
- reducing flooding
- managing cost inflation.
Every rate payer is provided a copy of our Rates Brochure (PDF 843KB). The brochure has more detail on where and how we spend this income.