Over the last month, ratepayers across NSW have been receiving their land valuations from the NSW Valuer General. This has understandably raised some questions in the minds of ratepayers about how land valuations will impact Council rates. 

Across the Central Coast, residential properties have seen on average a 74 percent increase in their land valuations. However, it’s important to note this does not directly correlate to an equivalent increase in your Council rates. 

The collection of Council rates is calculated against unimproved land value (i.e., the value of the land parcel) and does not take into account any structures built on the land (like a house). After each land valuation cycle (three years) is completed by the Valuer General, Council calculates each residential rate charge against its land valuation; the higher your land valuation, the more rates you pay. 

The general rule of thumb is that if your land valuation is more than the average land valuation (74 percent increase during this cycle), then your rates will increase slightly. If your land valuation increased by less than the average, then your rates will decrease slightly as a result of changes in land valuation. 

However, separate from this is the annual rate peg increase to rates. For the upcoming Financial Year 2023-24 (FY23-24), the Independent Pricing and Regulatory Tribunal (IPART) has acknowledged the impact of inflation and determined that rates will increase slightly by 3.7 percent (the rate peg), plus a 0.1 percent allowance for population growth, totalling 3.8 percent. Therefore, the total increase in residential rates collected by Council is forecast to increase by 3.8 percent only, or $6.7 million, from $173.2 million during FY22-23 to $179.9 million in FY23-24. 

Rik Hart, Administrator 

For more information about Council rates, head to Council's website and read the frequently asked questions (FAQs) here: https://www.centralcoast.nsw.gov.au/residents/property/pay-rates-and-water-bills/pay-rates