Have you recently purchased a property in the City of Joondalup?
Here is some information about the settlement process in relation to your rates:
- The owner or settlement agent must advise the City in writing of the sale of the property within 21 days of it selling
- Under normal circumstances, the settlement agent for the purchaser will have already forwarded a “Change of Ownership” form to Rating Services, which advises the City the property has been sold. This form lists the vendor’s name, purchaser’s name and address and the change of ownership date
- The City sends a rates statement to both settlement agents advising of the rates raised and any outstanding balance
- Settlement agents usually deal with all financial transactions, which include the payment of Local Government rates, water rates, land tax etc
- Funds from both the vendor and purchaser are usually held at settlement for payment of these accounts
- The settlement agent will calculate, prior to settlement (on a daily basis), the portion of rates owed by both the vendor and the purchaser
How are my rates calculated?
- Rates are calculated by multiplying the Gross Rental Value (GRV) or Unimproved Value (UV) by the rate in the dollar
- For improved properties the GRV is an annual rental value determined by the Valuer General
- For vacant land, where no rental value can be determined, the GRV is calculated on the basis of 3% of its capital (or resale value), for residential properties and 5% for commercial and industrial properties
What is a GRV?
- The Gross Rental Value (GRV) is an annual rental value determined by the Valuer General
- It is calculated by analysing actual rental information assembled from statistics obtained from property managers, owners and other sources. This means that properties are rated on their income earning potential rather than their resale value
- Every three years the Valuer General revalues all properties within the metropolitan area and the last revaluation year was 2017/18.
What factors affect my GRV?
- Many variables affect the GRV of a property such as location, the number of bedrooms and bathrooms a property has, if the property has a pool and the age of the house.
What can I do if I disagree with the GRV for my property?
- Under the Valuation of Land Act you have the right to object to the value that is used to determine your rates and taxes
- Objections can be lodged with the Valuer General’s Office (not the City of Joondalup) by mail to PO Box 2222, Midland WA 6936 or email within 60 days of the issue of your rate notice
- Objections should be made in writing and must include: the full address of your property, the local government in which your property is located, the valuation to which the objection relates, and the detailed reasons and evidence in support of the grounds for objection.
Rates must be paid as assessed irrespective of whether you have lodged an objection. If the valuation is amended then a refund will be issued.
What is a minimum payment?
- If the calculation of GRV x rate in dollar is less than the minimum payment, then the minimum payment will be applied which is set in recognition that every property receives some minimum level of benefit from works, services and facilities provided
- A local government is able to set a minimum amount payable for properties in its district, and most local governments apply a minimum payment
- The minimum payment for 2019/20 is $909.00 for Residential Improved properties and $929.00 for Residential Vacant, Commercial and Industrial properties
How is the instalment charge calculated?
- The City offers payments by instalments, which attracts a fee called an instalment charge
- The instalment charge is calculated in two parts
- The first is an administration charge of $12.00 per instalment notice issued
- The second is instalment interest of 5.5 % p.a. calculated on the instalment amount due once the first instalment is paid
Under what authority does the City charge late payment interest?
- The City charges penalty interest (currently 11.00 % p.a.) on outstanding rates not being paid in instalments or on amounts which remain unpaid after the due date of the instalment until the instalment is paid.
- The Local Government (Financial Management) Regulations 1996 allows the City to charge penalty interest.
What if I cannot pay my rates either in full or according to the instalment program offered?
- The City offers special payment arrangements (by direct debit from a bank account) for those customers who are unable to pay in full or according to the instalment plan
- An administration fee of $34.00 is charged on each special payment arrangement, and penalty interest of 11.00% p.a. will also apply on the outstanding balance until the account is cleared
- If you are unable to make a special arrangement via Direct Debit, a manual arrangement can be requested by completing the manual payment arrangement form. However, if the conditions of the arrangement are not adhered to, the arrangement will be cancelled and the full amount will become due and payable including any accrued penalty interest
What is a Refuse charge and why do I pay it?
- The annual refuse charge funds the weekly emptying of the 140L green bin, the fortnightly recycling bin service and the bulk verge collection at your property. The refuse charge for 2019/20 is $346.00. The administration fee for a new rubbish bin is $105.00. For further information please call 9400 4255.
What is a Specified Area Rate (SAR) and who pays it?
- Specified Area Rates apply in designated areas within the City
- Owners in Iluka, Woodvale Waters Woodvale, new Burns Beach and Harbour Rise Estate Hillarys pay a special rate to cover the costs of additional landscaping services
- This is charged at a separate rate in the dollar and is listed as an additional item on the rate notice
- The same GRV used for calculating rates is applied to this rate in the dollar to calculate the specified area rate payable
- The City is required to use the money from specified area rates for the purpose for which the rate is imposed and in the financial year in which it is imposed
Rates in the dollar for specified area rates for the 2019/20 year are:
- Burns Beach – 0.33550c
- Iluka – 0.67544c
- Harbour Rise – 0.67236c
- Woodvale Waters – 0.25513c
What happens to my rates if I build a new house, an addition or a pool?
When there are changes to your property that affect its valuation, the City receives advice of the new valuation and an effective date for that valuation from the Valuer General. It then issues an amended rate notice, called an interim rate notice.
Examples of where your valuation would be amended include:
- A new building has been built
- A pool has been installed
- A new room has been added
- A property has been demolished.
The City usually receives the interim valuations from the Valuer General within 3 to 5 months of the completion of the addition.
How do I change my address details?
Property owners have an obligation to ensure the City has the correct address for the service of notices.
This can be done by any of the methods shown below: