How are my rates calculated?

1.Overview

Council rates are a property-based tax.  Rates are based on the value of the property you own.  Victorian government legislation requires the Council to assess the property of all properties every two years.

You can learn more about how to pay your rates, rebates and budget highlights in our Rates, Value & Budget Brochure.(PDF, 928KB)

Our Peninsula 2021 – the Mornington Peninsula Shire’s Council Plan 2017-2021 provides a blueprint for how council will work towards achieving its strategic objectives.

The services and major initiatives funded in the Budget are how Council delivers on its strategic objectives

 Rates in comparison 2017-18How your rates are spent 2017-18

 

 

2.Valuations

Property valuations are used to calculate how much you pay in rates. Government legislation requires the Council to assess the value of all properties every two years.

Valuation method

Council uses the Capital Improved Value method to determine your rates. Capital Improved Value (CIV) is basically the market value of the land and improvements.

Property values are determined by analysis of market sales and rental evidence. The valuer builds a profile of value levels for each different area/property type by analysis of recent sales and leasings. This information is then applied to individual properties, taking into account the different characteristics of each property.

Date of valuation

All properties were valued with an effective date of 1 January 2016 for use by Council in the 2016/2017 and 2017/2018 rating years and are in force until 30 June 2018. Where something (other than market fluctuations) has changed the property value, supplementary valuations must be performed between general valuations and these may be performed at any time of year.

Further information on valuations.

3.Rates

General rate

For the period 1 July 2017 to 30 June 2018 the general rate in the dollar is 0.0021383. A standard residential property with a CIV of $438,000 will have rates as follows: $438,000 x 0.0021383 + $197 = $1133.58

Vacant residential land

To ensure owners of vacant residential land make equitable financial contributions to the cost of carrying out the functions of Council, vacant land (as defined within the various zonings) attracts a differential rate 20% above the general rate.

Vacant commercial and industrial land

To ensure owners of vacant commercial/industrial land make equitable financial contributions to the cost of carrying out the functions of Council, vacant commercial/ industrial land attracts a differential rate 40% above the general rate.

Mornington peninsula agricultural rate

Agricultural Rate is set at 35% of the general rate and the property must firstly be classified as "farm land" in accordance with the provisions of the Valuation of Land Act 1960 in order to qualify.

Rebates

Pensioner rebate

To be eligible for a Pension Rebate, the ratepayer must be the holder of a current: Pensioner Concession card (issued by Centrelink or Department of Veterans Affairs), DVA Gold Card TPI – Totally and Permanently Incapacitated, or DVA Gold Card WW – War Widow. Eligible pension cardholders receive up to 50% off their rates to a maximum of $223.80 for the 2017/18 year. A rebate of rates may only be claimed for your principal place of residence and only one rebate is granted per rating year. Applications for the current year may be received until 30 June 2018. Further information on pensioner concessions.

Heritage rebate

The Heritage Rebate recognises the cultural values of heritage properties on the Mornington Peninsula.  Further information on the heritage rebate.

Land sustainability rebate

Offers a 25% rate rebate on the land (excluding house and curtilage) to reward landowners on properties of 2 hectares or larger, (who currently do not receive the Agricultural Rate) for undertaking environmentally sustainable improvements to their properties.  Further information on the land sustainability rebate.

4.State government fire services levy

Local councils must collect the Fire Services Property Levy on behalf of the state government. There is a flat $107 charge for residential properties and $216 for other properties, as well as a charge based on the valuation of the property for all property types. Refer to the levy information on your 2017/18 Rates Notice.

5.Electronic rates notices and online payments

eRates Notices 

Are you tired of receiving paper bills? Council now offers electronic delivery of rates notices either by Bpay or email.  Learn more about eRates notices.

Online Payments

The Shire's ongoing commitment to customer service includes making our payments and services available online, 24hrs a day for our customers.  Boat ramp permits, requests for copies of house plans, rates, animal registration renewal,permits for landscaping your nature strip and many more services are now available online for your convenience.  Simply use the search tool (top right) to find what you are looking for.

6.Rate capping

Council has complied with the Victorian Government’s rates cap of 2.0%. The cap applies to the average annual increase of rates and charges.

7.Waste Service Charge

The Waste Service Charge is intended to recoup the full cost of waste services including collection, disposal, street sweeping, footpath sweeping, beach cleaning, state government landfill levy, plus street and drain litter collection. The Waste Service Charge has been set at $197 for 2017/18 and applies equally to all properties.

8.Contiguous rating

 The Shire is able to combine multiple titles onto one rate notice where they are occupied by the same person.  This is known as contiguous rating.  Properties can be abutting or may be separated by a public reserve or open space, street, road, lane, footway, court, railway or thoroughfare.  Having your properties rated together is a financial benefit as you will only be charged one Waste Service Charge.  In some circumstances combining multiple titles onto one rate notice can change the rating category, resulting in further savings.  The rate in the dollar for General Rate is currently 20% less than the Vacant Land Rate.  Learn more about combining your rates.

9.Are you having difficulty paying your rates?

If you feel you cannot make the payments by the due dates, please contact the Revenue Department immediately to discuss your situation.  Mornington Peninsula Shire will consider all applications for assistance and may be able to offer alternative payment arrangements. Learn more about rates payment assistance.