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Creating a fairer rates system

Published On

25/02/2021

With a new harmonised rating structure to be introduced on 1 July 2021, Central Coast ratepayers will see an increase or a decrease in their rates depending on property values and location.

The NSW Government has mandated that merged Councils’ rates be harmonised by 1 July 2021. Prior to this, the Government had imposed a ‘rate freeze’ on Councils, with the effect that the rate paths (structures) in place at the time of merger (May 2016), could not be changed until now.

Council Acting Director Corporate Affairs, Natalia Cowley said that rates harmonisation does not result in any additional income for Council. 

“This is about equity. A new harmonised rating structure is about ensuring the spread of the rates burden is as fair as possible across the whole Local Government Area. All Central Coast ratepayers will have their rates calculated in the same way which means that within each rating category and sub-category ratepayers with the same land values will pay the same amount for Council services. With the current rate path freeze this is not the case,” Ms Cowley said.

“The change in the rates payable from rates harmonisation is based on land value. If you live in an area where land values have risen (such as the former Gosford Local Government Area) more than in other localities (such as the former Wyong Local Government Area) then you will experience a bigger rise in rates through this process. For some former Wyong Local Government Area ratepayers, rates will go down.

“Council does not set property values – that’s done by the NSW Government Valuer General and is beyond the control of Council,” Ms Cowley said.

Council Administrator Dick Persson AM said he understood that the effect of the rates variation process and rates harmonisation would lead some ratepayers to have uncertainty about their payable rates in the short term.

“Timing has not been kind to us,” Mr Persson said.

“We were required to urgently address Council’s adverse financial situation through an application for a rates variation, and we are also required by the State Government to proceed with rates harmonisation.

“We know many people are doing it tough right now due to COVID – especially our business community and those who work in areas like services and hospitality.

“That’s why we have reviewed our Debt Recovery and Hardship Policy to give support to those who need help to pay their rates. That is currently on exhibition and the community can view it and have their say up until 9 March.”

Details about the harmonised rating structure, including an online calculator to find out individual rate impacts can be found at yourvoiceourcoast.com.

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