City Advertises Differential Rates Proposal
The City is advertising the Joondalup Council’s proposal to apply differential rates as part of the process for the 2020-21 Draft Budget, which is expected to deliver an overall reduction in revenue from rates compared to 2019-20.
Differential rating, first introduced in the City in 2008-09, helps to maintain the distribution of burden between residential, commercial and industrial property following a revaluation.
2020-21 is a revaluation year, in which the State Government’s Valuer General revalues all properties in the City. This occurs once every three years, with the last revaluation year in 2017-18.
A differential rating system helps to lessen the rates burden on those sectors of the community most affected by valuation increases as well as dealing with the changed circumstances caused by the COVID-19 pandemic.
The net effect of the recommended changes brought about by the implementation of differential rating and the revaluations of all properties by the Valuer General would be that 95% of rate payers will pay less in rates in 2020-21 than they did in 2019-20.
Joondalup Mayor Albert Jacob said the reductions in rates have been targeted to assist residents and small businesses, who have been most effected by the COVID-19 issue.
“While the Draft 2020-21 Budget is still in the final stages of preparation, it has been determined that the budget’s parameters will deliver no increase in rate revenue for 2020-21,” Mayor Jacob said.
“The City’s administration has worked hard to present a draft budget that ensures the vast majority of ratepayers will not be adversely impacted by the revaluation of property values.
“Based on the proposed cents per dollar in each differential rating category, along with the expected changes to Gross Rental Valuations (GRVs), it is estimated that overall revenue from rates is likely to reduce by approximately 5% when compared to the equivalent situation in 2019-20.
“The COVID-19 issue and the corresponding state of emergency in Western Australia remains a fluid situation, so the overall draft position is still under consideration.
“These are unprecedented times but as a Council we have an obligation to do what we can to help lessen the financial burden to our residents and businesses.”
Council is required to consider public submissions received during the advertising period prior to making its final determination on differential rating.