Rates are calculated on the land valuation of a property, multiplied by a 'rate in the dollar'. The land value is determined by the Land and Property Information Division of the Department of Lands (formerly known as the NSW Valuer General's Office).
Land valuations
New land values are issued approximately every four years and you should get a valuation notice after it is done. If you don't agree with the land value, you generally have 60 days to object. The Department of Lands will facilitate your objection over-the-phone when you contact their Objection Call Centre on 1800 110 038.
You must still pay your rates while your objection is being considered. The Department of Lands will advise you in writing of their decision, including the final date for an appeal. If you don't agree with the valuation, you have limited time to appeal to the Land and Environment Court.
Rate pegging
Each year the Minister for Local Government approves a maximum percentage increase in the total money Council can receive from rates. This is called the rate-pegging percentage.
Because of rate pegging, Council's overall rates revenue cannot increase by more than the percentage increase approved by the Minister. If overall land values rise, Council may have to reduce or otherwise adjust the amounts levied per dollar so that total income does not grow by more than the percentage increase approved by the Minister.
This means that the rating structure may change significantly from year to year. Within rate-pegging it is possible for some rates to increase by more than the rate-peg limit while others may increase by less than the rate-peg limit. In some cases, rates may decrease from the previous year.
Special variations
Council can apply to the Minister for Local Government to increase its general income by more than the rate-pegging limit. This is called a special variation application. Council must include details of its intention to apply for a special variation in its draft Plan of Management and consider any submissions received from the public. If approved, the Minister will specify the percentage by which Council may increase its general income.
Council's application to the Minister for a special variation for the 2009-10 rating year was approved. The rate-pegging limit for 2009-10 was announced at 3.5% and we have been granted permission to continue our 6% Environmental Levy for a further five years.
Categorisation of land
All rateable land with Randwick City Council is categorised as either residential or business. Council decides which category your property should be in based on its characteristics and use. Most people are charged ordinary rates under the residential category.
Categories are important, because rates differ depending on the category of the land. For example, if your land is categorised as residential you may pay a lower rate per dollar of land value than if your land is categorised as business. In some instances when a property is a mix of residential and business use, a mixed development factor is applied.
If usage of the property changes (for example, residential to business) you must notify Council. A rateable person may apply in writing to Council at any time for a review of the rating category of their property.
If you are not satisfied with the category given to your property, you may apply to council for the category to be reviewed. If you do this, council must notify you of their decision and the reasons for that decision. If you do not agree with the category given to your property, you may appeal to the Land and Environment Court. You must do this within 30 days of receiving council's review decision.