Council Rates |
Document No: |
CPL510.2 |
Approval Date: |
25 June 2019 |
Approved By: |
Council |
Review Date: |
May 2020 |
Responsible Officer: Director Finance and Strategy |
Expiry Date: |
N/A |
Version No: |
12 |
Authorising Officer: |
Chief Executive Officer |
1. Purpose
To ensure that the organisationl has a sound basis on which to develop the various charging features when determining its revenue strategies and ensure consistency with provisions of the Local Government Act 1989 (LGA).
2. Scope
The policy applies to the City when considering and determining the annual budget or special rates and charges throughout the financial year.
Council officers must consider the application of this policy when:
- preparing revenue models or raising charges, or
- dealing with any proposed or existing commercial enterprises.
3. References
- LGA – Part 8 Rates and Charges on Rateable Land – in particular see 161(1).
- Ministerial Guidelines for Differential Rating.
4. Definitions
Use and Level of Differential Rate
The differential rate will be used to fund some of those items of expenditure described in the Budget adopted by Council and set at a level which Council considers necessary to achieve the identified objectives.
Geographic Location
Wherever located within the municipal district, except those differentials which are described below as including a geographic restriction.
Use of Land
Any use permitted under the Greater Geelong Planning Scheme.
Planning Scheme Zoning
The zoning applicable to each piece of rateable land within this category, as determined by consulting maps referred to in the Greater Geelong Planning Scheme.
Types of Buildings
All buildings which are now constructed on the land or which are constructed prior to 30 June 2020.
Vacant Land
No building must be located on the land or constructed prior to 30 June 2020 except for any uninhabitable shed or shelter, the size of which does not exceed 5% of the total area of the land.
Differential Characteristics and Rating Objectives
Residential Land - means any land:
- that is used exclusively for residential purposes; or
- on which a habitable building is erected, which building is unoccupied, and which is zoned residential under the Greater Geelong Planning Scheme.
Rating Objective:
To ensure that all rateable land makes an equitable and efficient financial contribution to the cost of carrying out the functions of the City generally, including the:
- construction and maintenance of public infrastructure;
- development and provision of health and community services; and
- provision of general support services.
Vacant Land - means any land:
- that does not have the characteristics of Farm Land; and
- on which no building is erected, save for any uninhabitable shed or shelter, the size of which does not exceed 5% of the total area of the land.
Rating Objectives:
-
To ensure that all rateable land makes an equitable and efficient financial contribution to the cost of carrying out the functions of the City generally, including the:
- construction and maintenance of public infrastructure;
- development and provision of health and community services; and
- provision of general support services.
- To encourage the prompt development of vacant land to attract new residents and businesses to the City of Greater Geelong.
- To discourage untimely and unnecessary divisions of land.
These objectives will be met by setting the Vacant Land differential at 146% of the Residential Land differential.
Commercial Land – means any land that:
-
does not have the characteristics of:
- Farm Land; or
- Industrial Land; or
- Petroleum Production Land.
- is used predominately for the sale of goods or services or other commercial purposes; or
- on which a habitable building is erected, which building is unoccupied, and which is zoned other than residential under the Greater Geelong Planning Scheme.
Rating Objective:
To ensure that all rateable land makes an equitable and efficient financial contribution to the cost of carrying out the functions of the City generally, including the:
- construction and maintenance of public infrastructure;
- development and provision of health and community services; and
- provision of general support services.
The Point – Residential Land - means any land that:
- is used exclusively for residential purposes; or
- on which a habitable building is erected, which building is unoccupied, and which is zoned residential under the Greater Geelong Planning Scheme; and
forms part of the land formerly
described in Certificate of Title Volume 09901 Folio 324 and also described as
Lot B PS 635643, PS 640648Y, PS 722221H, PS 722220K, PS 743868K, PS 732908M, PS
638301D, PS 635642R, PS722215C, PS 722214E PS
743877, PS 816893, PS 743876, PS 743878, PS822924, PS 822922, PS
822918 and PS 816907.
Rating Objectives:
-
To ensure that all rateable land makes an equitable and efficient financial contribution to the cost of carrying out the functions of the City generally, including the:
- construction and maintenance of public infrastructure;
- development and provision of health and community services;
- provision of general support services; and
- management of environmentally sensitive land.
- To ensure that, following the development of the Point Land, and transfer to the City of the management of environmentally sensitive land, including the provision of a range of services around an existing waterway, constructed lake and canal system, an equitable and efficient financial contribution to the cost of the City's management responsibilities will be made by the ratepayers in respect of that land.
The Point – Vacant Land - means any land:
- that does not have the characteristics of Farm Land; and
- on which no building is erected save for any small uninhabitable storage shed or shelter, the size of which does not exceed 5% of the total land area; and
- forms part of the land formerly
described in Certificate of Title Volume 09901 Folio 324 and also described as
Lot B PS 635643, PS 640648Y, PS 722221H, PS 722220K, PS 743868K, PS 732908M, PS
638301D, PS 635642R, PS722215C, PS 722214E PS
743877, PS 816893, PS 743876, PS 743878, PS822924, PS 822922, PS
822918 and PS 816907.
Rating Objectives:
-
To ensure that all rateable land makes an equitable and efficient financial contribution to the cost of carrying out the functions of the City, generally including the:
- construction and maintenance of public infrastructure;
- development and provision of health and community services;
- provision of general support services; and
- management of environmentally sensitive land.
- To ensure that, following the development of the Point Land, and transfer to the City of the management of environmentally sensitive land, including the provision of a range of services around an existing waterway, constructed lake and canal system, an equitable and efficient financial contribution to the cost of the City's management responsibilities will be made by the ratepayers in respect of that land.
- To encourage the prompt development of vacant land to attract new residents and businesses to the City of Greater Geelong and, more specifically, to the Point Land.
- To discourage untimely and unnecessary divisions of land.
The Point – Commercial Land - means any land that:
-
does not have the characteristics of:
- Farm Land; or
- Industrial Land; and
- is used predominantly for the sale of goods or services, or other commercial purposes; or
- on which a habitable building is erected, which building is unoccupied, and which is zoned other than residential under the Greater Geelong Planning Scheme; and
- forms part of the land formerly described in
Certificate of Title Volume 09901 Folio 324 and also described as Lot B PS 635643, PS 640648Y, PS 722221H, PS 722220K, PS 743868K, PS 732908M, PS
638301D, PS 635642R, PS722215C, PS 722214E PS
743877, PS 816893, PS 743876, PS 743878, PS822924, PS 822922, PS
822918 and PS 816907.
Rating Objectives:
-
To ensure that all rateable land makes an equitable and efficient financial contribution to cost of carrying out the functions of the City, generally including the:
- construction and maintenance of public infrastructure;
- development and provision of health and community services;
- provision of general support services; and
- management of environmentally sensitive land.
- To ensure that, following the development of the Point Land, and transfer to the City of the management of environmentally sensitive land, including the provision of a range of services around an existing waterway, constructed lake and canal system, to ensure that an equitable and efficient financial contribution to the cost of the City's management responsibilities will be made by the ratepayers in respect of that land.
Industrial Land – means any land that:
-
does not have the characteristics of:
- Vacant Land; or
- Commercial Land; or
- Petroleum Production Land.
- is used predominately for industrial purposes, which includes manufacturing, repairing, servicing, processing and reprocessing.
Rating Objective:
To ensure that all rateable land makes an equitable and efficient financial contribution to the cost of carrying out the functions of the City generally, including the:
- construction and maintenance of public infrastructure;
- development and provision of health and community services; and
- provision of general support services.
Mixed Use Land – means any land that:
- has the characteristics of Residential Land combined with the characteristics of Commercial Land or Industrial Land; and
- is used partly for residential purposes and partly for commercial and/or industrial purposes.
Rating Objective:
To ensure that all rateable land makes an equitable and efficient financial contribution to the cost of carrying out the functions of the City generally, including the:
- construction and maintenance of public infrastructure;
- development and provision of health and community services; and
- provision of general support services.
Farm Land – means any land which:
- is not less than 2 hectares in area; and
- is used predominantly for the business of grazing (including agistment), dairying, pig-farming, poultry farming, fish farming, tree farming, bee-keeping, viticulture, horticulture, fruit growing or the growing of crops of any kind or for any combination of those activities; or
- satisfies the criteria for municipal purpose benefit for large holdings to the extent that it is, for example, land that is predominantly used and maintained for heritage, cultural or environmental purposes, or land that is held as natural bushland under a trust for nature covenant, or land that is held under some other type of similar formal undertaking.
To avoid doubt, 'business' for the purposes of identifying Farm Land has the same meaning as that given to it by section 2(1) of the Valuation of Land Act 1960 for the same purpose, being a business that:
- has a significant and substantial commercial purpose or character; and
- seeks to make a profit on a continuous or repetitive basis form its activities on the land; and
- is making a profit from its activities on the land, or that has a reasonable prospect of making a profit from its activities on the land if it continues to operate in the way that it is operating.
Rating Objectives:
-
To ensure that all rateable land makes an equitable and efficient financial contribution to the cost of carrying out the functions of the City generally, including the:
- construction and maintenance of public infrastructure;
- development and provision of health and community services; and
- provision of general support services.
- To encourage and support the business of primary production and, where appropriate, expand the business of primary production.
These objectives will be met by setting the Farm Land differential at 80% of the Residential Land differential and by the provision of a farm rebate under Section 169 of the LGA.
Petroleum Production Land – means any land that is:
- used primarily for the production or conveyance of petroleum and/or petroleum by-products; and
- described as all that land generally bounded more or less by Princes Highway, Shell Parade, Corio Bay Foreshore, Wharf Road, Station Road and neighbouring land.
Rating Objective:
To ensure that all rateable land makes an equitable and efficient financial contribution to the cost of carrying out the functions of the City generally, including the:
- construction and maintenance of public infrastructure;
- development and provision of health and community services; and
- provision of general support services.
The
Petroleum Production Land differential is set at the Industrial Land rate
differential from 2017-18.
Cultural and Recreational Land – means any land that:
- has the characteristics of 'recreational lands' as defined by the Cultural and Recreational Lands Act 1963; and
- the following organisations will be reviewed to confirm eligibility based on land use definition:
Assessment |
Ratepayer |
Property Address |
2315 |
Bareena Bowling Club
Incorporated |
89 Noble Street, NEWTOWN VIC
3220 |
75017 |
Bell Park Sports Club |
10 Lynnburn Road, BATESFORD VIC
3213 |
18010 |
Barwon Rowing Club Inc. |
2 Barwon Terrace, SOUTH GEELONG
VIC 3220 |
18011 |
Geelong College Rowing Club |
4 Barwon Terrace, SOUTH GEELONG
VIC 3220 |
18012 |
Geelong Church of England
Grammar School |
6 Barwon Terrace, SOUTH GEELONG
VIC 3220 |
18014 |
Geelong Rowing Association |
8 Barwon Terrace, SOUTH GEELONG
VIC 3220 |
18015 |
Corio Bay Rowing Club |
10 Barwon Terrace, SOUTH
GEELONG VIC 3220 |
18932 |
Geelong Race Course Trustees |
99 Breakwater Road, BREAKWATER
VIC 3219 |
19004 |
Royal Geelong Agricultural
& Pastoral Society Inc |
79 Breakwater Road, BREAKWATER
VIC 3219 |
14860 |
Royal Geelong Yacht Club |
25 Eastern Beach Road, GEELONG
VIC 3220 |
18125 |
Geelong Eastern Park Bowling
Club Inc |
51-55 Garden Street, EAST
GEELONG VIC 3219
|
12265 |
Geelong Football Club Limited |
360 Moorabool Street, SOUTH
GEELONG VIC 3220 |
14226 |
East Geelong Golf Club |
401 Eastern Park Circuit, EAST
GEELONG VIC 3219 |
17308 |
East Geelong Recreation Reserve
Committee |
137-139 McKillop Street,
GEELONG VIC 3220 |
12466 |
Western Beach Boat Club Inc |
74-90 Western Foreshore Road,
GEELONG VIC 3220 |
19948 |
Highton Bowling Club Inc |
204 Roslyn Road, HIGHTON VIC
3216 |
34824 |
Barwon Heads Golf Club
Incorporated |
1A Golf Links Road, BARWON
HEADS VIC 3227 |
27814 |
Belmont Bowling Club
Incorporated |
16-36 Reynolds Road, BELMONT VIC
3216 |
28619 |
Geelong Lawn Tennis Club
Incorporated |
12-20 Sommers Street, BELMONT
VIC 3216 |
28620 |
Geelong Bowls Club Incorporated |
4-10 Sommers Street, BELMONT
VIC 3216 |
41419 |
Geelong Pistol Club Inc |
70-80 Williams Road, MOUNT
DUNEED VIC 3217 |
75364 |
Western District Car Club and
Geelong Motor Sports Complex Inc |
55 Beach Road, AVALON VIC 3212 |
76277 |
Beckley Park Committee of
Management Inc |
40 Broderick Road, CORIO VIC
3214
|
78578 |
Croatian Community Centre of
Geelong (Inc) |
172 Cox Road, CORIO VIC 3214
|
81781 |
Australian Croatian Sporting
Centre and
North Geelong Warriors Soccer Club Inc |
15 Gibbons Road, LARA VIC 3212 |
86079 |
Geelong Trailable Yacht Club
Inc |
105 Mackey Street, NORTH
GEELONG VIC 3215 |
51189 |
Clifton Springs Golf Club Inc |
62-88 Clear Water Drive,
CLIFTON SPRINGS VIC 3222 |
51336 |
Clifton Springs Bowling Club |
39 Springs Street, CLIFTON
SPRINGS VIC 3222 |
51643 |
Drysdale Bowling & Croquet
Club Inc |
19-29 Collins Street, DRYSDALE
VIC 3222 |
55682 |
Lonsdale Golf Club |
PARENT - 28 Gill Road, POINT LONSDALE
VIC 3225 |
56256 |
Portarlington Sailing Club |
219 Point Richards Road,
PORTARLINGTON VIC 3223 |
56261 |
Portarlington Bowls Club
Incorporated |
2A Harding Street,
PORTARLINGTON VIC 3223 |
56282 |
Indented Head Boat Club Inc |
326A The Esplanade, INDENTED
HEAD VIC 3223 |
56284 |
Indented Head Yacht Club |
326B The Esplanade, INDENTED
HEAD VIC 3223 |
56302 |
St Leonards Yacht Club &
Motor Squadron |
1001 Lower Bluff Road, ST
LEONARDS VIC 3223 |
59153 |
Portarlington Golf Club |
92-160 Hood Road, PORTARLINGTON
VIC 3223 |
60281 |
Leopold Sportsmans Club Inc |
131-139 Kensington Road,
LEOPOLD VIC 3224 |
61065 |
Ocean Grove Bowling Club
Incorporated |
16-24 The Terrace, OCEAN GROVE
VIC 3226 |
63059 |
St Leonards Bowling Club |
1274 Murradoc Road, ST LEONARDS
VIC 3223 |
71282 |
Ocean Grove Golf Club
Incorporated |
9 Guthridge Street, OCEAN GROVE
VIC 3226 |
72825 |
Geelong Watersports Club Inc |
493-499 Wilsons Road, ST ALBANS
PARK VIC 3219 |
103216 |
Lagoon Boat Club Inc |
200 Foreshore Road, CORIO VIC
3214 |
112395 |
Belrec Incorporated |
68 Calvert Street, HAMLYN HEIGHTS
VIC 3215 |
112396 |
North Shore Football &
Netball Club Inc |
39 Rose Avenue, NORLANE VIC
3214 |
113283 |
Lara Sporting Club Incorporated |
4 Mill Road, LARA VIC 3212 |
115653 |
Corio Bay Sailing Club |
180 Foreshore Road, CORIO VIC
3214 |
806676 |
Norlane Bowling Club
Incorporated |
26-36 St Georges Road, CORIO
VIC 3214 |
813371 |
Lara Bowling Club Inc |
10 Alkara Avenue, LARA VIC 3212 |
821417 |
Herne Hill Bowls Club Inc |
200 McCurdy Road, FYANSFORD VIC
3218 |
901556 |
Seabrae Boat Owners Club Inc |
302 Clifton Avenue, LEOPOLD VIC
3224 |
902805 |
Barwon Heads Bowling Club Inc |
18 Geelong Road East, BARWON
HEADS VIC 3227 |
919267 |
Lonsdale Golf Club |
69 Fellows Road, POINT LONSDALE
VIC 3225 |
920726 |
City of Geelong Bowls Club Inc |
7-9 Ballarat Road, NORTH
GEELONG VIC 3215 |
If the ratepayer is not eligible then the transitional rebate may apply.
5. Council Policy
5.1. Statement of Principles
5.1.1. |
The application of the rating strategy should be simple, efficient, and include a mechanism that contains principles of public benefit taxation. |
5.1.2.. |
While general rates are not a 'user pays' mechanism, elements of the rating strategy will embrace the 'user pays' principle where practicable. the City may consider the imposition of specific costs that may warrant the striking of new or higher differentials. The investigation of new differentials will be conducted as appropriate. |
5.1.3. |
Rating must ensure that there is sufficient funding to meet the cost of providing and maintaining infrastructure, assets and services for the benefit of current and future communities. |
5.1.4. |
The City of Greater Geelong applies a Capital Improved Valuation
(CIV) method to all properties within the municipality to take into account the
full development value of the property. This method is applied irrespective of
whether the property is subject to rates or exempt under legislation. The City
recognises that people with higher value properties generally have higher
wealth and a greater ability to meet the provision of council services. |
5.1.5. |
Rating, through the application of higher differentials,
recognises the ability of some ratepayers to obtain concessions from the tax
deductibility of council rates and provides for a series of differential rates.
This takes into account low economic return to large landholdings, avoidance of
distortions in the market or an ability to contribute above the standard
charge. |
5.1.6. |
Rating shall endeavour to promote and encourage economic development throughout the municipality. |
5.1.7. |
The Farm Land differential is intended to recognise the benefits of large land holdings, open space and what has traditionally been a lesser demand upon Council services per land area held. Council has used a combination of a differential rate and a rebate under Section 169 of the LGA in order to maintain the status of farms as the lowest rated tariff group. |
5.1.8. |
Vacant Land is rated at a higher rate in the dollar than Residential Land to encourage the development of the land and discourage future subdivisions ahead of market elements. |
5.1.9. |
To promote equity in rating, a "Municipal Charge" may be used or, where appropriate, an ex-gratia amount may be negotiated. |
5.2. Rating Strategy
Parameters to be considered in developing Rating Strategy:
5.2.1. |
Rate Differentials (or "RateTypes"):
Under Section 161(1) of the LGA.
The City will apply differential rates to
ensure there is flexibility in the rating model to enable rates to be raised at
different levels.
The City has considered its differential rates in the context of the range of revenue
instruments available to it and has determined that differential rates are the
most appropriate means of meeting the City'ss stated objectives.
The
investigation of introducing new differentials will proceed budget discussions. |
5.2.2. |
Municipal Charge:
Under Section 159(1) of the LGA
The City will apply a "Municipal Charge" to ensure some of its fixed administrative costs are recovered as a uniform contribution by all of its ratepayers.
(Note: Council intent is to continually review the charge over time, noting that it can total no more than 20% of the total rate income as required by Section 159(2) of the LGA.). |
5.2.3. |
Service Rates & Charges:
Under Section 162(1) of the LGA
The City has service rates and charges to
recover the full cost of the service from the user through an annual charge,
for example: the waste management / garbage charge is determined annually in accordance
with cost and service.
From 1 July 2016 a user pays system will
be introduced for an additional bin service. |
5.2.4. |
Special Rates & Charges:
Under Section 163(1) of the LGA
The City has special rates and charges to defray the cost for the performance of a function that is of special benefit to any specific ratepayer group (refer Council Policy Special Rates & Charges). |
5.2.5. |
Ex Gratia Rates
The City has "Ex Gratia Rates" to gain contributions towards its operational costs from those property owners which are otherwise exempt from paying rates. The City's intent is to align ex gratia contributions as close, or equivalent, to the applicable rate category for that property as possible, subject to particular circumstances. |
5.3. Other Legislative Provisions (LGA)
5.3.1. |
Section 157 of the LGA provides that the City may use the "Site Value", "Net Annual Value" or "Capital Improved Value" system of valuation. ("Capital Improved Valuation" is currently used by the City). |
5.3.2. |
Section 158 of the LGA requires Council to declare rates and charges by 31 August each year. |
5.3.3. |
Section 158A of the LGA requires rates and charges to be levied on each occupancy. |
5.3.4. |
Section 161(5) of the LGA requires that the highest differential must be no more than 4 times the lowest differential. |
5.4. Incentives, Discounts and Rebates
5.4.1. |
For 2019-20 the City does not grant rebates or concessions to assist the proper development in full or part unless a council resolution as per the LGA specifies the benefit to the community as a whole. |
5.4.2. |
The City offers support by way of sponsorships, grants and donations to specific groups as an alternative to rate rebates. |
5.4.3. |
The City administers the State Government funded pension rebate according to the eligibility criteria set by the State Government. |
5.4.4. |
Council declares a Farm Rebate to support the continuation of broad acre farming. The Farm Rebate is fixed at 33.3% of general rates payable in respect of each assessment that is subject to the Farm Land differential. |
5.4.5. |
Council declares a transitional rebate for 25% of the difference between
the Cultural and Recreational differential of the otherwise applicable
differential. Properties that were eligible for the Cultural and Recreational
differential in 2016-17 that are no longer eligible in 2017-18 will be
encouraged to apply for this rebate. |
5.5. Rates Waivers
Rates Assistance will be reviewed annually as part of the budget process and published within Council's Rating Strategy. Ratepayers will be provided with a range of payment options. Applications for hardship will be considered in accordance with Sections 170 and 171 of the LGA.
5.5.1. |
Council declares a waiver of general rates under Section 171A of the LGA
for the class of persons comprised of ratepayers in respect of assessments
which are categorised as Residential Land or Farm Land where the valuation of
the assessment has increased, between the 2018 valuation and the 2019 valuation,
by 50% or more and that increase is purely attributable to market factors, not
attributable, in whole or in part, to improvements made to the assessment by
the owner (or occupier). The amount of the waiver is set at: |
|
5.5.1.1. |
Between 25% and 49.99% of the general rates payable for the 2018-19 financial year, increasing pro rata according to the valuation increase, for valuation increases between 45% and 54.99%; and |
|
5.5.1.2. |
50% of the general rates payable for the 2019-20 financial year for valuation increases of 55% or more. |
|
The waiver
is designed to mitigate the rates shock of a valuation increase and can only be
claimed in respect of an assessment once in a two year valuation cycle. |
5.5.2. |
Council declares a Housing Support waiver of 100% of general rates and municipal charge under Section 171 of the LGA for the class of persons comprised of ratepayers in respect of assessments which contain the following types of housing: |
|
5.5.2.1. |
transitional, emergency or crisis housing; |
|
5.5.2.2. |
housing for Legatees or War Widows, provided by the Geelong Legacy Club or provided by RSL; and |
|
5.5.2.3. |
supported housing for disabled people. |
|
This waiver recognises that these properties provide for specific needs within the community. |
5.5.3. |
For 2019-20 financial year, Council declares a waiver of 100% of general
rates and municipal charge under Section 171 of the LGA for the class of
persons comprised of ratepayers in respect of assessments which are in private
ownership within the inappropriate subdivision known as New Corio Estate. This
rates assistance waiver recognises the financial burden associated with
ownership of this land. Land within the
New Corio Estate is zoned as farming land and the area has been determined to
be an inappropriate subdivision due to the difficulty of providing utilities
and drainage and due to its distance from other residential areas. The Minister
for Environment & Climate Change has approved a native vegetation plan for
this land in support of natural temperate grassland of the Victorian Volcanic
Plains. The waiver recognises the ongoing encumbrances on the land that prevent
owners from making any demands on Council services now and into the future. |
5.6. Rate Review
5.6.1. |
Rateable and non-rateable land shall be subject to regular review and audit.
Rateable land is reviewed:
- upon revaluation;
- when building permits or subdivisions occur;
- where a parcel of land may have more than one land use;
- if the creation of a separate assessment on a parcel of land is required;
- upon sale and transfer of land;
- upon inspection by the City; and
- upon application and inquiry by the ratepayer.
Non-rateable land shall be reviewed bi-annually in respect to its continuing classification as non-rateable land. |
5.7. Policy Review
5.7.1. |
This Policy and Rating Strategy shall be reviewed annually during budget development and endorsed by Council. |
6. Quality Records
Quality Records shall be retained for at least the period shown below.
Record |
Retention/Disposal Responsibility |
Retention Period |
Location |
Adopted Budget |
Manager – Financial Services |
|
EDRMS D19-361071 |
7. Attachments
None.