New rates in dollar to meet rates cap

  • Council made a minor error when estimating future property valuations for Cardinia Shire for 2018-19.
  •  If you are a ratepayer in Cardinia Shire you will be credited for the over-calculated amount via a deduction in future rates payments.
  •  The average amount to be credited to each property owner is $1.22. The exact amount depends on your property’s value.   
  •  These credits will ensure we comply with the Victorian Government’s rate cap of 2.25%
  • We are committed to adhering to the rates cap, and have put measures in place to ensure a more accurate estimation in future years.

Read the media release

Council was recently advised by the Essential Services Commission that it was at risk of an “immaterial non-compliance” with the Victorian Government’s rate cap of 2.25% - that is, we were at risk of exceeding the rate cap by a small amount. 

Without adjusting the error, Council’s rate increase would be 2.33% – a total of $52,765 over the 2.25% cap. This is an average of $1.22 per rateable property.

To work out rates charges for the coming financial year, councils need to estimate the total value of rateable properties in their municipality well in advance of annual budgets being finalised.

Councils look to previous growth in the area to help make this estimation.

Our error was due to:

  • a slowing in housing growth, meaning fewer new rateable properties than projected
  • receiving approved valuation data later than expected from the Valuer General
  • higher than anticipated property valuations across the municipality.

This depends on how you have paid, or are currently paying, your rates bill for 2018–19.

If you have already paid your 2018-19 rates in full: You will be credited on your 2019-20 rates notice

If you are paying by FlexiPay: You will get an email or SMS to let you know that the scheduled payment will be adjusted to reflect the new (reduced) amount.

If you are paying in instalments: The rates adjustment will apply to the third instalment notice, issued in February 2019.

Differential rate category

Previous Rate

$/CIV

Adjusted Rate

$/CIV

Agricultural Land

0.002048

0.002045

Base Rate

0.002728

0.002726

Lakeside Residential

0.002948

0.002946

Lakeside Vacant Land

0.006367

0.006365

Urban Agricultural Land

0.002320

0.002318

Urban Commercial and Industrial Land

0.003958

0.003956

Urban Rate

0.002893

0.002891

Urban Vacant Land

0.006249

0.006246

We will now use 'point in time' data to inform rating calculations, instead of projections. Point in time figures will be revisited throughout the budget process, allowing for the rate in the dollar to be adjusted accordingly before the budget is adopted.