How your rates are calculated
Handy info on your rates notice
- To see how rates for your property are calculated, refer to the 'post-it' note on the front of your 2018–19 rates notice – it shows how the rates on your specific property are calculated.
- The 4 rates instalment amounts shown on the front of the rates notice equal the annual total due for 2018–19.
What are rates?
Rates are a contribution by property owners to the cost of building and maintaining local infrastructure and facilities, and providing services.
To find out more about how your rates are spent see our 2018-19 budget or go to the What your rates pay for page
How rates are calculated
The amount of rates you pay depends on the value of your property in comparison to other properties in Cardinia Shire. Independent valuers work out the Capital Improved Value (CIV) of your property. This happens every 2 years across Victoria – the most recent valuation happened at the start of 2018. For more info go to the Property valuations page
Rate in the-dollar: the different property categories
To work out how much you pay in rates, your property’s CIV is multiplied by the ‘rate in the dollar'.
The rate in the dollar is calculated by dividing the total amount of rates revenue we need to provide essential services and facilities for the year by the total value (CIV) of all rateable properties in Cardinia Shire.
In 2018–19, rates revenue to be raised is about $74.8 million.
To keep things fair, the rate in the dollar varies according to the type of property you own.
| Levy | Rate in CIV ($) | Description |
|---|---|---|
| Urban rate | 0.002893 | Land with a dwelling in the Urban Growth Corridor except in Lakeside Estate. |
| Urban commercial and industrial | 0.003958 | Commercial, retail and industrial properties in the Urban Growth Corridor. |
| Lakeside residential | 0.002948 | Land with a dwelling in Lakeside Estate. |
| Lakeside vacant land | 0.006367 | Vacant residential land in Lakeside Estate. |
| Urban agricultural land | 0.00232 | Farms of 40 or more hectares in the urban growth corridor. |
| Urban vacant land | 0.006249 | Vacant residential land in the urban growth corridor and not in Lakeside Estate |
| Agricultural land | 0.002048 | Farms of 40 or more hectares outside the urban growth corridor. |
| Base rate | 0.002728 | All properties that do not fit into any of the types above. |
Formula for calculating rates
An example
Property value $850,000 in the Urban residential category
$850,000 x 0.002893 =
$2459 (plus Victorian Government charges and waste services charges).
Rate capping
The Victorian Government capped most Council’s rates at a 2.25% increase in 2018-19. We have complied with this rates cap, which means the total rates revenue we can collect across the shire can only increase by a maximum of 2.25% on last year.
Note that the rate cap applies to the total rates revenue we can collect. It does not apply to individual properties (or other charges on the rates notices, such as waste service charges, supplementary rates or the Victorian Government's Fire Services Property Levy).
Why your rates might increase OR decrease by more than 2.25%
Example of rates going up by more than 2.25%
Property 1
Rate in the dollar category: Urban residential
2016 valuation: $650,000
2018 valuation: $850,000
Value increase: 30.76%
Old rates amount: $2,364.05 ($650,000 X 0.003637)
New rates amount: $2,459.05 ($850,000 X 0.002893)
Rates have increased by 4.02%
Example of rates going down by more than 2.25%
Property 2
Rate in the dollar category: Urban residential
2016 valuation: $800,000
2018 valuation: $950,000
Value increase: 18.75%
Old rates amount: $2,909.60 ($800,000 X 0.003637)
New rates amount: $2,748.35 ($950,000 X 0.002893)
Rates have decreased by 6.22%
Video explaining how rate capping works
Find out about rate capping in this video from the Municipal Association of Victoria.
How does rate capping work? from MAV on Vimeo.