How Rates are Calculated

The Council continues to use 'capital value' as the basis for valuing land within the Council area. This is considered the fairest method to calculate rates.

House - Home Based BusinessIn setting rates, the Council considers its strategic management plan, CityPlan 2030, the current economic climate, legislative changes and the need to maintain and improve physical infrastructure. The fundamental principle of equity within the community and an assessment of the impact of rates are also considered.

 

How rates are calculated

As rates are in effect a property tax, it means the higher the value of your property, the more you are likely to contribute to the amount raised by the Council in the form of rates.

The minimum any ratepayer can contribute is $958 per annum or the equivalent of $2.62 per day. This ensures all ratepayers contribute towards the provision of basic services at a reasonable level.

The 'rate-in-the-dollar' is a mechanism used by councils to determine what rate will be charged to ratepayers across the community. Although this mechanism has its limitations, because it does not take into account individual circumstances such as capacity to pay, it is currently the fairest way known to calculate rates.

 

Method used to value property

The Council continues to use the capital value of a property as a basis for calculating rates and adopts the capital values which are provided by the State Valuation Office (Valuer General). It is considered that this method of valuing land provides the fairest method of distributing the rate burden across all ratepayers on the following basis:

  • property value is a good indicator of wealth and capital value, which closely approximates the market value of a property, provides the best indicator of overall property value
  • the equity principle of taxation requires that ratepayers of similar wealth pay similar taxes and ratepayers of greater wealth pay more tax than ratepayers of lesser wealth
  • the distribution of property values throughout the City of Norwood Payneham & St Peters is such that only just over one third of residential ratepayers will pay more than the average rate per property.