How are Rates calculated?
Your rate amount is calculated by multiplying a property’s Gross Rental Value (GRV) or Unimproved Value (UV) by the rate in the dollar set by Council.
GRV – is a valuation of your property, determined by the Valuer General, as an estimate of the rental income you would receive if the property was rented for one year.
UV – is also determined by the Valuer General and is based on the value of undeveloped land.
Rate in the dollar is set by Council to ensure sufficient income is received to enable continued service delivery to the community.
Can I object to my property valuation?
If you believe the valuation of your property is incorrect, you can lodge an objection with the Western Australian Valuer General’s Office within 60 days of the issue date of your Rates Notice.
Please contact Landgate on 08 9273 9273 to lodge an objection or visit the Landgate website here.
If you lodge an objection, rates are still required to be paid by the due date while the objection is assessed by Landgate. Failure to do so may incur interest charges. Any reduction as a result of a successful valuation objection will be refunded to you.
Why is the amount you're charging me higher than the rate I calculated?
You are being charged what is known as the ‘minimum rate’.
This is a rate set by Council to reflect what is considered to be a reasonable contribution to the cost of Shire services and management.
If your Gross Rental Value multiplied by the Shire’s rate in the dollar means that your rates are less than the set minimum, then the set minimum is charged.
Why do I pay such high rates for vacant land?
All land is subject to the application of rates, including the Waste Rate. Vacant land is also valued differently by the Valuer General (VGO).
Rates are based on an assessment of the annual rental value of a property, known as Gross Rental Value (GRV) and is the responsibility of the VGO: a State Government agency. It is then multiplied by a rate in the dollar (the Shire’s responsibility) to provide the actual rates on a property. Vacant land does not have rental potential so the VGO calculates a synthetic rental value by using 3% of the market value of land. In most cases, vacant land will be charged the minimum rate, as explained above.
What is GRV and UV?
Shire rates are levied on the values of the rateable properties provided by the Valuer General Office (VGO).
GRV, or Gross Rental Value, means the gross annual rental that the land might reasonably be expected to receive if let on a tenancy from year to year. This is applied to urban properties and these values are re-assessed every 5 years.
UV, or Unimproved Values, are used as the basis for the levy of rates for rural properties. UV properties are revalued every year.
Read more from Landgate on GRV & UV Valuations here.
What rate changes should I expect if I upgrade my property?
When there are changes to your property that affect its valuation, the Shire receives advice of the new valuation (and an effective date for the new valuation) from the Valuer General. An amended rates notice, called an interim rates notice, is then issued. An interim rates notice does not replace the original rates notice but is an additional charge.
Examples of where your valuation would be amended include:
- a new building has been built
- a pool has been installed
- a new room has been added
- a property has been demolished