Under the Local Government Act 1995 (the Act), the Minister for Local Government is authorised to approve the following in relation to rates:
- the imposition of a differential general rate which is twice the lowest differential general rate imposed by a local government
- a minimum payment on vacant land that does not comply with legislative provisions
- changes in the method of valuation of land
- valuation of land (mining)
- land exempt from rates.
The Minister for Local Government has endorsed policies that guide the exercise of the power to approve the imposition of rates or guide the power to determine the method of valuation of land.
Application forms are available in the policy documents.
Policies
- Differential rating applications
- Local governments and rating powers
- Rating Policy: Valuation of Land
- Rating Policy: Valuation of Land — Mining
- Rating Policy: Minimum Payments
- Rating Policy: Giving Notice
- Rating Policy: Differential Rates
Application forms
- Differential rates table spreadsheet
- Rating Application Form - Method of Valuation - Land Valuation
- Rating Application Form - Method of Valuation - Recent Residential Subdivision
- Differential general rates application form
- Minimum payments application form
How are rates set?
The amount of rates payable is determined by 3 factors: the method of valuing the land; the valuation of the land and improvements; and the rate in the dollar applied to that valuation by the local government.
The Minister for Local Government determines the appropriate method for the valuation of the land according to the relevant legislation and the rating policy on the valuation of land: that is, whether the unimproved value or the gross rental value of the land applies. This is based on the purpose for which the land is held or used.
The Valuer-General values the land in line with the Valuation of Land Act 1978. More information is available in the Valuer-General’s Guide to Rating and Taxing Values.
As part of its budgetary process, a local government will establish its budget deficit and set its rates to cover this shortfall. These will be imposed as a rate in the dollar, which will be applied to the valuation determined by the Valuer-General.
If a local government decides to impose differential general rates (that is, apply different rates according to zoning, land use, whether the land is vacant or a combination of these factors), it must advertise these proposed rates on the official website of the local government and in 3 of the following prescribed ways:
- publication in a newspaper circulating generally in the State
- publication in a newspaper circulating generally in the district
- publication in 1 or more newsletters circulating generally in the district
- publication on the official website of the department
- circulation by the local government by email, text message or similar electronic means
- exhibition on a notice board at the local government offices and each local government library in the district
- posting on a social media account administered by the local government.
This will occur after 1 May in any year, and the local government must provide a minimum of 21 days after the advertisement appears for any elector or ratepayer to make a submission. Submissions must be considered by the council before imposing the proposed rate or minimum payment with or without modification.
Rating decisions and the budget process webinar
Budget Consideration in Rate Setting
Publications
Differential rates and minimum payments lessons learned 2024
Differential rates and minimum payments lessons learned comparative report 2024
Differential rate and minimum payment applications 2024: Statistical analysis
Differential rate and minimum payment application checklist
Differential rates
The differential rates policy provides guidance on ministerial approval for the imposition of a differential general rate which is more than twice the lowest differential rate.
Included with the policy is an application form that outlines the necessary information and attachments required to enable the Minister to make a decision.
To assist with the requirements of Section 6.36 of the Act, the Rating Policy: Giving Notice has been developed. Local governments are encouraged to review this policy to ensure compliance with the public notice requirements.
Minimum payments
The minimum payments policy provides guidance on ministerial approval for the imposition of a minimum payment on vacant land which does not comply with legislative provisions covering the number or percentage of properties affected.
Included with the policy is an application form that outlines the necessary information and attachments required to enable the Minister for Local Government to make a decision.
To assist with the requirements of Section 6.36 of the Act, the Rating Policy: Giving Notice has been developed. Local governments are encouraged to review this policy to ensure compliance with the public notice requirements.
Valuation of land
The valuation of land rating policy provides guidance for the Minister to make a decision on the method of valuation of land for rating purposes.
Included with the policy are 2 application forms that outline the necessary information and attachments required to enable the Minister to make a decision.
Valuation of land — mining
The Rating Policy: Valuation of Land - Mining provides information for the minister to determine the method of valuation of land for rating purposes where that land is subject to a mining tenement under the Mining Act 1978 or a permit, drilling reservation, lease or licence held under the Petroleum and Geothermal Energy Resources Act 1967 (known as a 'relevant interest').
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