What are rates and why do we have them?
Who has to pay rates?
When are rates due?
How can I make payments?
What is the Assessed Annual Value (AAV)?
What is the capital value?
How can I check my rates balance?
Do I get a discount if I pay my rates early?
Am I entitled to a rates remission?
What if I am experiencing difficulties in paying rates?
What if my payment is late?
What happens if I don't pay my rates?
How do I change my contact details?

Councils are expected to deliver many services and to provide an acceptable level of public amenity for the benefit of all residents. Their main source of revenue is a property tax, commonly known as 'rates'. This tax is based on the assessed value of each property on a fixed date for all rateable properties across the municipal area. The following information will help you to understand your responsibilities as a ratepayer. It also outlines allocations of rates and charges, penalties and concessions that may affect you.

Making of Rates and Charges - Rate Resolution

Rates & Charges Policy

Recent changes to the Local Government Act 1993 now require Council to adopt a Rates and Charges Policy.

Council has been supplied with a publication produced by Department of Premier and Cabinet, Division of Local Government, Security and Emergency Management, titled "Local Government Rates and Charges - Guidance Paper for Policy Development". This document was workshopped with Aldermen on 7 May 2012.

A draft Policy was prepared and Workshopped with Aldermen on 4 June 2012.

The Policy, a copy of which is attached, has been prepared in accordance with the Act and the language used is intended to make it easy for the reader to understand. Technical jargon has been avoided and it is hoped that this objective is achieved.

Rates and Charges Policy

What are rates and why do we have them?

Rates are a tax levied by council. Their purpose is to support the council in providing services for the benefit of all residents. Rates help pay for:

• Waste and recycling collection and disposal
• Animal control
• Community safety initiatives
• Street lighting and cleaning
• Local roads, footpaths and drainage
• Stormwater disposal services
• Operation of halls and community centres
• Maintenance of parks, playgrounds and sportsgrounds
• Youth, family and senior services
• Community events
• State Government charges for a range of services including fire service, planning and libraries
• Other works, programs and facilities

Rates are normally made up of a general rate and a service rate and/or charge. Under certain circumstances, a council may levy a construction rate or charge, or a separate rate.

General Rates

A general rate is a 'progressive tax', reflecting the land, capital or Assessed Annual Value (AAV) of property. It may involve an additional fixed charge which applies equally to every property. A council may make a general rate whether or not it provides any services to the land upon which the rating is made.

Service Rate or Charge

A council may make a service rate for any, all, or a combination of the following services:

• waste management
• stormwater removal
• fire protection
• a community medical service
• an on-site wastewater treatment or disposal system requiring a permit
• any other prescribed service

The service rate is also 'progressive', being determined by the same property value as the general rate. Councils may set a minimum amount payable for a service rate if it does not include a fixed charge. Councils may levy a service charge in addition to, or instead of making a service rate. A service charge is a fixed charge payable on each property. The charge may differ in various parts of the municipal area depending on the type of service being provided and the circumstances in a particular area. If a service is not provided or is unavailable, the prescribed rate or charge for that service may not apply.

Construction Rate or Charge

A construction rate or charge may be set by councils in order to provide the infrastructure currently lacking for stormwater services to land that is within an established drainage district.

Separate Rates

A council may make a separate rate in respect of any land or class of land within its municipal area. This may occur where, in council's opinion there is a need to plan, carry out, make available, maintain or improve anything on behalf of the affected land, or owners or occupiers of that land. If a council decides to make a separate rate it must undertake a consultation process with the ratepayers of the affected land. A separate rate may only be made for a 5 year period before it is subject to a review process and further consultation with affected ratepayers.

Who has to pay rates?

Generally, the owners of land have to pay rates. Occupiers of land may pay rates in exceptional circumstances. They may do so with the written consent of the owners. If someone other than the owner is paying the rates then the council needs to be notified accordingly.

When are rates due?

Rates are paid periodically by a due date or dates set by council. A rates notice is posted to ratepayers, allowing approximately 60 days before payment of the entire amount is due, or, if payment is by instalments, at least 30 days before the first payment is due.

The whole of the rates specified in the rates notice are due on 31 August 2012. Instalments are due on the following dates:

• First instalment on or before 31 August 2012
• Second instalment on or before 31 October 2012
• Third instalment on or before 28 February 2013
• Fourth instalment on or before 30 April 2013

The ratepayer is responsible for ensuring that they pay their rates on time. If a ratepayer does not pay the rates on his or her property, Council may commence legal action against the ratepayer to recover the outstanding amount.

Any instalment not paid by the due date will incur a 10% penalty immediately following the instalment due date.

How can I make payments?

Methods of payment are outlined in your rates notice and include payment by:

• BPay
• Telephone - BPoint
• Internet - BPoint
• Direct Debit - Direct Debit Application Form
• Centrelink Centrepay
• Mail
• In person

Visit Payment Methods for further information.

What is the Assessed Annual Value (AAV)?

An assessed annual valuation is an assessment of the market value of a property, at a specific date and in accordance with legislation. The Valuer General determines the AAV under the Valuation of Land Act 2001. It is the gross annual income that, at the time of valuation, the owner of the property might reasonably expect to obtain from letting it to a tenant. The assessed annual value of the land cannot be less than 4 per cent of the capital value of the land.

What is the capital value?

It is the expected sum of money that might be realised if the land and any existing dwelling or improvements were offered for sale at a particular time. For instance, on a rates notice, it may show land value as $40,000 and capital value as $125,000. The capital values includes the land value of any buildings on the site.

How can I check my rates balance?

If you wish to check your rates balance, please contact council on (03) 6424 0511.

Do I get a discount if I pay my rates early?

No, Devonport City Council does not offer a discount for early payment of rates.

Am I entitled to a rates remission?

Under the provisions of the Local Government Act 1993, a ratepayer may apply to council for remission of all or part of the rates paid or payable. The be entitled to apply, the Local Government (Rates and Charges Remissions) Act 1991, requires that a ratepayer must be an eligible pensioner and must occupy the property as his or her principle dwelling on or prior to 1 July of the rating year. To be an eligible pensioner you must have:

• A Centrelink Pensioner Concession Card, or
• A Department of Veteran's Affairs Repatriation Health 'Gold Card' which bears the inscription 'War Widow' or 'TPI', or
• Health Care Card Holders - Australian Government

Applications for rates remissions must be received by council no later than 31 March of the year in which the rates are calculated.

What if I am experiencing difficulties in paying rates?

A ratepayer who is having difficulty in paying rates should contact council at the earliest opportunity to arrange a payment schedule that is agreeable both to council and the ratepayer. This is essential to avoid council taking legal action to recover the outstanding rates.

A ratepayer may also apply to council to defer the payment of rates on the grounds of hardship. An application has to be in writing and must be lodged with council's General Manager. A council may grant or refuse a deferral application. Any granted deferral may be subject to a condition that the ratepayer pay interest on the amount due.

What if my payment is late?

If a ratepayer does not pay the rates on his or her property council may commence legal action against the ratepayer to recover the outstanding amount. If council takes such legal action, the ratepayer may also be liable for council's legal costs associated with the action. If rates, or anyone's rates instalment, are not paid on or before they fall due, the council may impose a penalty not exceeding 10 per cent of the amount owing, and/or charge a daily interest rate determined by council.

What happens if I don't pay my rates?

A ratepayer who is having difficulty in paying rates should contact Council on (03) 6424 0511 at the earliest opportunity to arrange a payment schedule that is agreeable both to Council and the ratepayer.

This is essential to avoid Council charging a penalty or taking legal action to recover outstanding rates.

Any instalment not paid by the due date will incur a 10% penalty immediately following the instalment due date.

If rates are not paid for a period exceeding three years, the Council may sell a property or part of a property to recover the unpaid rates. Council can sell it by public auction or by direct sale. If the owner of a property cannot be found, the council may apply to have that property transferred to the Council.

How do I change my contact details?

Simply fill out the following Change of Address form and send or fax it back to Council.

Change of Address form 37.74 Kb