How Rates are Calculated

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In simple terms, rates are calculated by multiplying a property’s valuation by a rate in the dollar set by council.

Property Valuation

For most residents within our Shire, their property is valued using one of two methods, either Gross Rental Value (predominantly for townsite properties) or Unimproved Value (for rural properties). These values are determined by Landgate.

Gross Rental Value

The Gross Rental Value, or GRV, represents the gross annual rental that a property might reasonably be expected to earn annually if it were rented, including rates, taxes, insurance and other outgoings. For non-residential properties, GST is also included. The GRV is calculated for all properties regardless of whether the property is being rented or owner occupied. Vacant land is given a notional GRV which is 3% of the Unimproved Value of the land. New GRV valuations are made periodically, every 3 to 6 years.

Unimproved Value

Unimproved Value, or UV, is the value of land only. It does not include the value of your home, other structures or improvements. For land within townsites the UV does include merged improvements such as drainage, levelling and filling. New UV valuations are made every year.

Minimum Rates

Council sets a Minimum Payment in conjunction with setting the rates in the dollar each year. This is to ensure that all ratepayers make a reasonable contribution to the cost of providing the works, services and facilities that are available to the community. The calculation to determine if a property is charged the minimum payment is when the GRV (or UV), multiplied by the applicable rate in the dollar, is less than the amount of the minimum payment. If this is the case, such properties are charged the minimum payment.
The 2021/22 minimum rate for GRV is $980.00 and for UV is $1,215.00

How Does Council Decide on the Rate in The Dollar $

This is decided when Council adopts the Annual Budget each year. Each year Local Governments in WA determine their operating and capital budgets, and the amount of these that can be funded from other revenue sources such as grants, fees and charges. The balance of funding required is raised by levying rates on all property owners within the Shire.
Taking into account the overall revenue needed to be raised from rates, Council sets a rate in the dollar to apply to the property valuations that will raise the required amount. The rate in the dollar is different for property valued by GRV or UV.

Example 1:
Gross Rental Value = $16,500
Rate in the Dollar = 9.0527 cents (GRV)
Annual Rates Amount = $16,500 x 0.090527 = $1,493.70

Example 2:
Unimproved Value = $275,000
Rate in the Dollar = 0.6469 cents (UV)
Annual Rates amount = $275,000 x 0.006469 = $1,778.97

Rates FAQs

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What if I am having difficulty paying rates by the due dates?

If you are unable to pay your rates due to financial hardship, you can apply to the Shire for a custom payment arrangement. The Shire offers the option of paying via a weekly, fortnightly or monthly direct debit from your bank account as long as the arrangement has the debt paid by 30 June. An administration charge per property will apply for each plan, and interest will accrue daily on the balance of the overdue account, until it is fully paid.

Should there be any reason why a payment is not expected to be made in full by its due date, then please contact the Shire’s Rates Officer before the due date to discuss the matter further. If a payment is not paid in full by its due date and a customised payment arrangement is not entered into, then that amount falls into arrears and may be recovered through a court without further notice. Costs of legal proceedings will be added to your account.

Why are my rates so different to my neighbour?

Rates are calculated based on individual property valuations. Variations in these valuations will result in different rates levied for each property. There are also other variables in service charges that might apply from one property to the next.

Who assesses the Valuations on which rates are based?

Landgate (Valuer General’s Office) provides valuations for every property within the Shire – a Gross Renal Value (GRV) or an Unimproved Value (UV). A GRV revaluation occurs once every three to six years as determined by the Valuer General. Valuations for UV properties are supplied annually.

What can I do if I disagree with the GRV or UV valuation of my property?

If a ratepayer believes their property has been incorrectly valued they may lodge an objection with Landgate. Any objection against your property valuation is to be lodged with Landgate within 60 days of the date of issue of your rates notice. Please visit Landgate’s website at www.landgate.wa.gov.au for further information.

Rates are required to be paid by the due date, irrespective of whether an objection has been lodged. Any reduction in rates as a result of a successful objection will be allocated to any balance outstanding or refunded to you.

What happens with rates if I sell or buy a property?

If you use a settlement agent then generally you do not need to do anything as they will pay any outstanding balance to the Shire at settlement. They will calculate your portion of rates on a pro-rata basis and should provide you with a statement at settlement which will indicate any adjustments made for rates you have already paid.

What are interim rates?

Some ratepayers may be issued an additional rate notice during the year. This is referred to as an Interim Rate Notice, An Interim Rate Notice is a result of changes that have happened to the property which require a rating adjustment to be calculated after you have been issued with the original rate notice.

These notices are required to be issued by the Shire for various reasons such as:

• If Landgate considers that the valuation (GRV or UV) of a ratepayers' property has changed;
• Subdivision / Strata of land or amalgamation of land;
• Improvements or additions to the property including building a new house and, alterations and additions to an existing home including sheds;
• Demolition of any improvements; and
• Addition or removal of rubbish or recycling collection services.

An Interim Rate Notice will be accompanied by a letter of explanation including the details of the reason for the amendment and effective date of the valuation.

I don’t use the tip so why do I have to pay a Landfill Rate?

Council charges on all rateable properties a landfill rate under Section 66 of the Waste Avoidance and Resource Recovery Act 2007. This section of the Act allows Council to impose on rateable land within its district, and cause to be collected, an annual rate for the purpose of providing for the proper performance of all or any of the waste services it provides. The cost of providing waste services (excluding rubbish collection services) is divided equally between all ratepayers of the Shire (i.e. all rates assessments have the same charge for the Landfill Rate) regardless of whether you use the waste facility.

What is the Swimming Pool Inspection Fee?

State Government legislation requires all private swimming pool enclosures to be inspected at least once in every four years. The Shire’s fee for this service is charged per annum for each registered pool enclosure and is included on the annual rates account. This annual fee is designed to recover the cost of an inspection within the four year inspection cycle. All pool owners are encouraged to properly maintain their pool enclosures in the interest of safety.

What is the ESL and how is it calculated?

The Emergency Services Levy is a State Government levy for which Council is the collection agent. The amounts to be charged are set by the State Government and included on your annual rates account. All funds collected by the Shire from the ESL are forwarded to the Department of Fire & Emergency Services (DFES).

How do I advise my change of address?

If you have recently changed your postal or email address, or other contact details, please inform the Shire by completing the Change of Details form available on our website.

Concession FAQs

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Am I eligible for a concession on my rates?

Holders of a Pensioner Concession Card, State Concession Card, or WA Seniors Card who also hold a Commonwealth Seniors Health Card, who occupied their property as their main residence at the start of the financial year (1 July) and pay the rates by the end of the financial year (30 June), are eligible for a concession of:
- 50% of rates charges, to a maximum of $750
- 50% of Emergency Services Levy Charges

Holders of a WA Seniors Card only are entitled to a rebate of:
- $100 off rates charges
- 25% of Emergency Services Levy charges

*Concessions apply to Rates and Emergency Services Levy only and do not apply to any other charges that appear on your rate notice (e.g. rubbish collection)

How do I apply for the concession?

Application forms are available at the Shire or alternatively you can apply with the Water Corporation, either online or by phoning 1300 659 951.

I have purchased a new property and had a concession on my previous property, will my concession automatically transfer to my new property?

No, you must make a new application to obtain the concession for your new property.

I own multiple properties and live at them at various times during the year, can I claim a concession on all these properties?

No, you must choose which property you want the concession to apply.

I hold a concession card but my spouse doesn’t. Does this affect the concession?

No, only one spouse needs to hold a concession card to be entitled to the full concession amount.

Can I still get the concession if my rates are not paid by the end of the financial year?

No, if the rates & charges on your account are not paid in full by 30 June then the concession cannot be given.

I did not get my concession card until after 1 July, am I entitled to any rebate for the financial year?

Yes, if you occupied your property as your main residence at 1 July. You are entitled to a pro-rata rebate from the date you apply for your concession.

For Every $100 of Rates

The information below is available as a downloadable, click here to view or print.

For every $100 of rates spent, this is where it goes:

Proposed Differential Rates for the Year Ending 30 June 2022

Objectives & Reasons

In accordance with Section 6.36 of the Local Government Act 1995, the Shire of Bridgetown-Greenbushes is required to publish its Objects and Reasons for implementing Differential Rates.

Overall Objective

The purpose of the levying of rates is to meet Council’s budget requirements in each financial year in order to deliver services and community infrastructure. The Shire of Bridgetown-Greenbushes maintains facilities for and provides services to a diverse and changing district comprising of residential, commercial, industrial, rural, urban farmland and mining land.

Property valuations provided by the Valuer General are used as the basis for the calculation of rates each year. Section 6.33 of the Local Government Act 1995 provides the ability to differentially rate properties based on zoning and/or land use as determined by the Shire of Bridgetown-Greenbushes. The application of differential rating maintains equity in the rating of properties across the Shire, enabling the Council to provide facilities, infrastructure and services to the entire community.

As part of its budget deliberations Council has determined the budget deficiency by: 

• Reviewing all revenue sources and expenditure
• Assessing the current corporate business plan taking into consideration the Shire’s strategic community plan and long term financial plan
• Consideration and introduction of the following efficiency measures:
  • ongoing monitoring and review of the Bridgetown Leisure Centre operations, programs and services
  • implementation of the Workforce Plan which identifies a number of efficiency measures
  • implementation of a number of mini staff structure reviews in 2020/21
  • implementation or administration of various operational procedures including some relating to procurement
  • financial ratios report with improvement action plan
  • review of service levels for parks and gardens and cleaning of public toilets
  • investigated initiatives in best practice, red tape reduction, streamlining of approval processes and improvements to service delivery
  • purchase of an elevated work platform with the purchase price to be funded by savings in contractor expenses

The estimated budget deficiency of $4.88m will result in an increase to the total rate yield of 4% from the 2020/21 rate yield (adjusted for natural growth).

In setting the rates in the dollar Council has considered its existing differential rating categories in line with the key values contained within the Rating Policy Differential Rates (s.6.33) released by the Department of Local Government, Sport and Cultural Industries, being:

• Objectivity
• Fairness and equity
• Consistency
• Transparency and administrative efficiency

For the 2021/22 financial year Council will maintain its existing differential rating categories of rural and mining land in an attempt to ensure that the rates revenue from these classes is collected on an equitable basis, taking into consideration the cost of delivering services to each of the respective land classes in the district. Council will maintain existing relativities between all rating categories to those that applied in 2020/21 (adjusted for natural growth). This will ensure an equitable distribution of the required rates yield from one year to the next.

Rating Categories

Gross Rental Value (GRV)

The Local Government Act 1995 determines that properties of a non-rural purpose be rated using the Gross Rental Valuation (GRV) as the basis for the calculation of annual rates. The Shire of Bridgetown-Greenbushes applies one general GRV rate in the dollar to all such properties. The rate in the dollar applied ensures this rating category will pay a particular percentage of the overall rate yield to reflect the level of services provided.

Unimproved Value (UV)

The Local Government Act 1995 indicates that where the land is used predominantly for rural or for mining purposes, the unimproved value of the land will be used as the basis for the rates. Unimproved value (UV) means the capital amount that an estate of fee simple in the land might reasonably be expected to realise upon sale, assuming that any improvements to the land had not been made. Unimproved values are supplied and updated by the Valuer General on an annual basis.  Council applies the following differential unimproved value rating categories:

Rural UV - Consists of properties that are exclusively for rural use and is considered to be the base rate by which all other UV rated properties are assessed. The rate in the dollar applied ensures this rating category will pay a particular percentage of the overall rate yield to reflect the level of services provided.

Mining UV – Consists of mining and exploration tenements located in the district. The higher rate applied to this category reflects the Shire’s experience that mining activities associated with these tenements impact as follows:

• there is substantially greater burden on the Shire’s internal road network caused by heavy haulage mining vehicles;
• disturbance to the landscape on and adjacent to tenements requires Shire oversight and input with noxious weed mitigation and management; and
• administration and oversight of the application and approvals process for new tenement areas noting that these applications do not attract a fee to the Shire.

Differential Unimproved Value (UV) Rates

Differential Minimum Payment (UV)

A reduced minimum rate will apply to Mining (UV) properties. This will ensure not more than 50% of properties within this category are on the minimum rate as required by Section 6.35 of the Local Government Act 1995. 

Summary

In arriving at the proposed rates in the dollar the Council has attempted to balance the need for revenue to fund essential services and facilities with the desire to limit any increase on ratepayers to an affordable level in an equitable manner.

Submissions addressed to the Chief Executive Officer, Shire of Bridgetown-Greenbushes, P.O. Box 271, Bridgetown WA 6255, by electors or ratepayers in respect of the proposed Differential Rates shall be lodged and received at the Shire Offices by close of business Thursday, 7 July 2021.