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.

You can learn more about how to pay your rates, rebates and budget highlights in our 2024/25 Rates Brochure(PDF, 1MB).

Our Peninsula 2025 – the Mornington Peninsula Shire’s The Council and Wellbeing Plan 2021 - 2025  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.

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 year.

Valuation method

Council uses the Capital Improved Value (CIV) method to determine your rates. 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 2024 for use by Council in the 2024/2025 rating year and are in force until 30 June 2025. 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.

2. Rates

General rate

For the period 1 July 2024 to 30 June 2025 the rate in the dollar for residential improved properties is 0.0012830 cents. In addition to this rate, there is a waste service charge of $446.00 for the current year which applies equally to all properties. For example, if a residential property has a CIV of $825,000 the rates are calculated at:  $825,000 x 0.001323 + $406 (waste charge) = $1,497.48*.

*Fire Services Property Levy and other services such as additional bins are not included in this calculation

Vacant land

To ensure owners of vacant land make equitable financial contributions to the cost of carrying out the functions of Council, vacant 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 "farmland" in accordance with the provisions of the Valuation of Land Act 1960 in order to qualify.

Conservation land rate

Approved applicants for the Conservation Land Rate (formerly the Land Sustainability Rebate) will pay 75% of the general rate on the land component on their property, excluding the house and surrounds (curtilage) for undertaking appropriate conservation land management actions on their property. Eligibility criteria apply - visit our Conservation Land Rate page to find out more.  

Trust for nature 

Trust for Nature Land is land that is under Trust for Nature conservation covenant. This differential rate of 35% (which is 65% below the general rate) is to recognise the commitment towards protection of biodiversity of Mornington Peninsula Shire and provide the highest level of recognition possible within the limits of differential rating. A conservation covenant is a voluntary agreement between Trust for Nature and the landowners.

 

Rebates and Concessions

Pensioner concession

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 $259.50 for the 2024/2025 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 2025. 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.

3. State Government Fire Service Levy

Local councils must collect the Fire Services Property Levy on behalf of the state government. There is a flat $132 charge for residential properties and $267 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 2024/2025 Annual Rates Notice.

Learn more about the Fire Services Property Levy.

4. Electronic rates notices and online payments

EzyBill

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 online payments and services available online, 24hrs a day for our customers. 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.

5. Rate capping

Council has complied with the Victorian Government’s rates cap of 2.75%. The cap applies to the average annual increase of rates and charges.

6. 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, as well as provision for future works landfill areas (rehabilitation works)

The Waste Service Charge has been set at $406 for 2024/2025 and applies equally to all properties. 

NOTE: Victorian Government’s rates cap of 2.75% does not apply to the Waste Service Charge or the Fire Services Levy.

7. 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 40% less than the Vacant Land Rate. Learn more about combining your rates.

8. 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.