How are my rates calculated?
Most residential rates notices include 3 items – rates, a waste charge and a stormwater charge. Land values only impact rates.
Council’s rates are based on:
- Land value only (not buildings)
- Land values provided by the independent NSW Valuer General
- An ad valorem system (a rate in the dollar of land value)
- A minimum rate (for lower-value properties)
Council does not set land values, these are set by the Valuer General and Council cannot amend these land values.
Your rates are based on your property valuation and rating category. Properties are categorised as either Residential, Business or a business sub-category (Manly CBD, Warringah Mall, Warriewood Square, Strata Storage Units), or Farmland based on the property’s characteristics and use. Business properties within the Manly and Balgowlah business centres also pay an additional Special Rate to fund higher levels of service and specific works within these business centres.
Search for your property’s valuation and rating category.
For each rating category we set an ad valorem rate (an amount of cents charged for every $1 of land value) and a minimum rate where appropriate. Your rates will be the higher of the minimum rate or your land value multiplied by the ad valorem rate. Special Rates are also calculated based on your land value multiplied by an additional ad valorem rate.
Rates are set by the Council each year through our annual budget process, with changes in total rates income capped by the IPART's rate peg (based on their measure of price and productivity changes over a year for an average Council).
IPART sets the maximum increase councils can apply to their rates income each year – this is called the rate peg. Councils can also apply to IPART for a special variation to the rate peg.
Council’s total rates income cannot be increased by more than the increase approved by IPART.
How much has my Rates and Annual Charges changed?
Does everyone with the same land values pay the same rates?
All ratepayers in the same category or sub-category with the same land value pay the same for the same level of Council services.
How is land value calculated?
The NSW Valuer General is responsible for determining land valuations and provides these valuations for councils to use when assessing rates. Council cannot amend these land valuations and must rely on the valuations supplied by the Valuer General.
How can I find out my land value?
Your land value will be shown on your rates notice or search for your property land value.
I disagree with my land value. What do I do?
Land values are set independently by the NSW Valuer General and only apply to the land itself, not the value of buildings or improvements. Council has no role in deciding or influencing these values.
Council has no authority to amend individual land valuations.
Any objections must be lodged with the Valuer General within 60 days.
If you have concerns relating to your new property valuation, you can lodge an objection online with the Valuer General or contact them on:
- Phone: 1800 110 038
- Website: www.valuergeneral.nsw.gov.au
- Email: valuationenquiry@property.nsw.gov.au
If the Valuer General amends your land valuation they will advise Council of the new valuation relating to your property and if required your rates will be amended.
Does the Council receive more rates income if land values go up?
No, changes in land value do not result in extra income for Council.
IPART sets the maximum increase councils can apply to their rates income each year – this is called the rate peg. Councils can also apply to IPART for a special variation to the rate peg.
Land values are used by Council to determine how the IPART-capped total rates income is distributed among ratepayers. Changes in land values may result in a redistribution of rates between individual ratepayers depending on how an individual ratepayers’ land valuation has changed compared to the land values of other ratepayers. If a property’s land value increases more than the Northern Beaches average, its share of rates may rise. On the other hand, if its increase is below the average, its rates may decrease.
Can Council increase my rates?
The Independent Pricing and Regulatory Tribunal (IPART) annually reviews council rates and sets the maximum increase councils can apply.
The increase approved by IPART is applied to Councils total rates income and Council cannot exceed this amount when setting its rates.
This cap is called the ‘rate peg’ and IPART considers inflation driven cost increases to Council, like fuel, electricity and construction materials, in determining the appropriate rate peg each year. This increase ensures councils can maintain existing services and infrastructure at sustainable levels.
Councils can apply to IPART for special variations to the rate peg.
More information on the rate peg is available on the IPART’s website.
Why have my rates gone up or down more than the IPART rate peg?
The increase allowed by IPART relates to council income in total - not to individual rates assessments.
Individual rates are also affected by other factors such as changes to land valuations which are independently assessed every three years.
Overall council income can’t exceed more than the rate peg increase (or a special rate variation approved by IPART) but land valuations may change how that increase is distributed across the council area.