Rating Strategy Review 2018-2022

Council has reviewed its current Rating Strategy to ensure the equitable distribution of rates continues. We have come up with an option that is focussed on making Council’s Rating Strategy fairer, easier to understand and simpler to administer.

You can provide feedback on the below options at an information session, online or by appointment with the Manager Finance and Rates.

The closing date for feedback is Wednesday 28 February 2018.

Information Sessions

Council Offices, 90 Welsford Street Shepparton
Thursday 15 February 2018, at the following times:

Residential ratepayers – 9am to 10am
Farm ratepayers – 11am to 12pm
Commercial/Industrial ratepayers – 3pm to 4pm

Appointments

Call (03) 5832 9700 to arrange an appointment with Council's Manager Finance and Rates.

Online

Complete the form below.

Current Or Proposed Rating Strategy – Which Do You Prefer?

Councils collect rates (which are a form of property tax) from property owners to fund community infrastructure and services that benefit the whole community.

A rating strategy considers the fair and equitable share of rates to be paid by each type of property owner (residential, farms, commercial properties etc). This is in accordance with the Local Government Act and Ministerial Guidelines

A rating strategy doesn’t consider how much is needed to be raised from rates; this is calculated in the annual budget based on the Rate Cap declared by the Minister for Local Government.

Greater Shepparton City Council’s (Council) current rating strategy utilises a differential rating system (forming ratepayers of similar characteristics into groups) and the municipal charge to achieve what is believed to be a fair and equitable share of the rates to be paid.

However, Council has developed a proposed option that is arguably fairer, or just as fair, and both simpler and easier to understand.

Council’s proposed option is framed around the following key elements:

  1. That Council continues to apply differential rating as its rating system as this is fairer way of sharing the distribution of rates compared to a uniform rate;
  2. That Council merge the Commercial and Industrial rate types into one rate type and merge the Residential, Residential Unimproved and Rural Residential rate types into a single rate type. This would reduce the number of differentials by 11 to 4 making the rating strategy easier to understand and administer;
  3. That Commercial/Industrial differential rates be set at 205% of the General Rate in consideration of the Equity and Capacity to Pay principles;
  4. That the amount raised by the municipal charge be at 9% of the total municipal charge and general rate revenue in preparation for changes proposed under the Local Government Act review;
  5. That the basis of valuation for rating purposes continues to be Capital Improved Value (CIV) as this is consistent with the Local Government Act review.

Option 1 - Current Rating Strategy

Differential % of Residential Rate
Residential 100%
Residential Unimproved 100%
Rural Residential 100%
Commercial Unimproved 200%
Commercial 1 217%
Commercial 2 200%
Industrial Unimproved 200%
Industrial 1 204%
Industrial 2 200%
Farm 90%
Municipal Charge $262

Option 2 - Proposed Rating Strategy

Differential % of General Rate
General 100%
Commercial / Industrial 205%
Farm 90%
Municipal Charge $195

Comparison Examples

Above amounts do not include waste services or Fire Services Property Levy charges. Calculations are based on the 2017/2018 Adopted Budget and for comparative purposes. They do not include any rate cap increase for 2018/2019 and do not reflect rates for 2018/2019. These amounts are not intended to show winners and losers but rather demonstrate a more equitable distribution of the rates.

The option Council adopts will be effective from 1 July 2018.