How your rates are calculated

  • 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.

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

 

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

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.  

Rates-in-the-dollar for 2018-19
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 0.006367 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. 

 

Capital Improved Value (CIV) of your property
x rate in dollar
= Council charges
+ 
Victorian Government charges 
+  
waste charges
+ or –
any credit or arrears
–
Pensioner or DVA concession
= 
Annual total due

 

 

Property value $850,000 in the Urban residential category

$850,000 x 0.002893 = 

$2459 (plus Victorian Government charges and waste services charges). 

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).
 

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%

Find out about rate capping in this video from the Municipal Association of Victoria.

How does rate capping work? from MAV on Vimeo.