Tag: rates

Revaluation 2023/24 and what it means to my 2023/24 rates

Frequently Asked Questions

Under the Valuation of Land Act 1978, the Valuer General is required to maintain valuation rolls for all properties in Western Australia for rating and taxing purposes.

On behalf of the Valuer General, Landgate valuers provide independent and unbiased valuations of your property. These are called Gross Rental Values (GRVs) and they are used by local governments, government agencies, including the Water Corporation and emergency services as a basis to determine property rates, service charges and levies.

Every three years the Valuer General is required to reassess the Gross Rental Values for all properties within the metropolitan area. The Valuer General continued with the implementation of the Revaluation amidst the current economic circumstances to fairly reflect the reduction in the rental market. Therefore the 2023/24 rates will be based on the new Gross Rental Value (GRV).

What is a Gross Rental Value (GRV)?

For land that is developed, the GRV represents the gross annual rental that a property might reasonably be expected to earn annually if it were rented. The GRV is calculated based on rental evidence from property managers, owners and other sources for all rateable properties at a “snapshot in time”, regardless of whether the property is occupied by the owner or a family member, rented or unoccupied.

For land that is not developed, as rental evidence cannot be used, a statutory valuation of 3% of the Unimproved (or capital) value of the land is applied to properties designated as residential and 5% for properties designated as non-residential (commercial/industrial).

What affects my GRV?

The GRV of a property is affected by many factors including the age of a house, the number of bedrooms and bathrooms it has, whether it has a pool and the property’s location. This means that your GRV may be different from your neighbour, or from someone in a different suburb with a similar property.

What is a Revaluation?

Every three years the Valuer General is required to reassess the GRVs for all properties within the metropolitan area and this process is called a “Revaluation”.

How and when is the GRV determined?

All properties within a local government area are assessed at the same date. This date is used by valuers to ensure a fair and equitable assessment is completed for all properties at a given point in time.

The assessment date, which is known as the date of valuation, or DOV, is conducted every three years for the metropolitan area. The GRV remains in force for the respective three-year period until the next GRV is calculated, unless the property GRV is reassessed due to an addition, demolition etc.

Valuers at Landgate collect rental evidence at the date of valuation. The rental evidence is analysed to establish property market levels, with individual property attributes that are considered in order to determine a fair gross rental value for each property.

The City of Joondalup does not have input into the GRV determined by Landgate’s independent process.

What is the Date of Valuation (DOV) for the 2023/24 Revaluation?

The DOV for the 2023/24 revaluation is Sunday 1 August 2021. Rating valuations are therefore assessed at this “snapshot in time” which reflects the property rental market for the metropolitan area at the same date, which ensures consistency across the metropolitan area.

When do the new GRVs become effective?

The new GRVs came into effect on Saturday 1 July 2023 which means that these new GRVs will be used to calculate the 2023/24 rates.

Why is the (DOV) so ‘out of date/old’?

There is a delay between the date of valuation and the date the valuations are applied due to the time it takes for Landgate to collect and analyse valuation data and calculate new GRVs for all Western Australian properties.

For local governments in the metropolitan area this timeframe is 23 months between the date of valuation and the effective date.

How are my rates calculated?

The City of Joondalup determines the revenue required to complete the essential services that the City provides as part of the annual budget process. The City uses a differential rates system which means that different rate levels are charged for residential, commercial and industrial properties.

A rate in the dollar is applied to each rating category (residential, industrial, commercial, vacant or improved). The general rates are calculated by multiplying the GRV by the applicable rate in the dollar. This means that your rates may be different from your neighbour, or from someone in a different suburb with a similar property.

  • Your General Rates = GRV x Rate in the $

Other charges may also appear on your rate notice such as Refuse Charge, Pool Inspection Fee, Specified Area Rate or Emergency Services Levy. The Emergency Services Levy is levied and collected by local government on behalf of Department of Fire and Emergency Services (DFES).

What is the impact of the Revaluation on my rates?

The total revenue Council needs each year is set through its annual budget process.

In a Revaluation year, the “rate in the $” set by Council in the budgeting process and is normally adjusted to counteract the impact of the GRV movements which occur during this period.

The average movement in GRV’s across the City in 2023/24 is approximately 21%. However, individual properties can vary from this, depending on their particular location and attributes in the rental market.

Can I object to my valuation (GRV)?

A property owner may lodge an objection against the valuation of a property with Landgate within 60 days of the date of issue of a rates notice. For information on how your values are calculated and how to lodge an objection, please visit Landgate’s website or call Landgate Customer Service on 9273 7373.

The City has no control over the GRVs and any objections must be lodged with Landgate. Rates must be paid by the due date of the rate notice, irrespective of whether an objection has been lodged. If your objection is successful, the rates will be reassessed. Any credit that results from this reassessment will either be allocated to any balance outstanding, retained as a credit to offset future rates levied or can be refunded on request.

For further information call 9400 4000.

Objects of and reasons for proposed differential rates for the 2022-23 financial year

Gross rental value 

Object

The cents in the dollar ($) for the various differential rates are calculated to provide the shortfall in income required to enable the City to provide necessary works and services in the 2022-23 Financial Year after taking into account all non-rate sources of funding.

Reasons

Residential Improved:  the cents in the $ of 6.2668 has been set to ensure that the proportion of total rate revenue derived from residential property remains consistent with previous years.

Residential Vacant:  the cents in the $ of 11.7391 has been set to ensure that the proportion of total rate revenue derived from residential property remains consistent with previous years and is higher than residential improved property in an effort to promote development of this category of property thereby stimulating growth and development in the community.

Commercial Improved: the cents in the $ of 6.9784 has been set to ensure that the proportion of total rate revenue derived from commercial property remains consistent with previous years and recognises the higher demand on City infrastructure and services from the activity on commercial property.

Commercial Vacant: the cents in the $ of 11.7391 has been set to ensure that the proportion of total rate revenue derived from commercial property remains consistent with previous years and is higher than commercial improved property in an effort to promote development of this category of property thereby stimulating growth and development in the community.

Industrial Improved: the cents in the $ of 6.3464 has been set to ensure that the proportion of total rate revenue derived from industrial property remains consistent with previous years and recognises the higher demand on City infrastructure and services from the activity on industrial property.

Industrial Vacant: the cents in the $ of 11.7391 has been set to ensure that the proportion of total rate revenue derived from industrial property remains consistent with previous years and is higher than industrial improved property in an effort to promote development of this category of property thereby stimulating growth and development in the community.

Notice of Intention to Levy Differential Rates

In accordance with Section 6.36 of the Local Government Act 1995, the City of Joondalup hereby gives notice of its intention to impose differential rates on rateable property in the City of Joondalup in the 2022/23 financial year.

Details of the proposed differential rates are available in the Notice. Please review this Notice prior to submitting a submission to the City.

The cents in the dollar ($) shown in the Notice below are estimates and may be changed as part of the Council’s deliberations on any submissions received. All statutory entitlements in relation to rates for pensioner and other concession holders will apply.

The objects of and reasons for each proposed rate and minimum payment may be inspected at any time on the City’s website or at the City of Joondalup Administration Office, Boas Avenue, Joondalup.

The City invites submissions in relation to the proposed differential rates which are to be addressed to the:

Chief Executive Officer
City of Joondalup
PO Box 21, Joondalup WA 6919

Or by email to info@joondalup.wa.gov.au.

Submissions to be received by Friday 10 June 2022, 4.30pm.

Rates Transfer & Refund Fees

The City first introduced the following fees due to a large increase in the number of requests to transfer or refund monies that had been paid incorrectly. Please made sure you use the correct Reference Number and check the amount when making your payment to ensure no additional fees are incurred to transfer monies.

If a payment is made incorrectly, the following fees apply:

  1. If a payment is made using an incorrect Reference Number, a $13.00 fee (including GST) will apply to transfer the payment to the correct account. Please note, proof of payment will be requested
  2. If payments are made in excess of the amount due and a refund is then required, a fee of $13.00 (including GST) will apply. Please note, proof of payment will be requested

Should you have any queries regarding these fees, please contact Rating Services on 9400 4000.

Rates FAQs

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 is required to reassess the Gross Rental Values (GRV’s) within the metropolitan area.
  • The 2023/24 year is a revaluation year and therefore the 2023/24 rates will be based on the new Gross Rental Value (GRV)

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?

  • A property owner may lodge an objection against the valuation of a property within 60 days of the date of issue of a rates notice.
  • For information on how your values are calculated and how to lodge an objection, please visit Landgate’s website landgate.wa.gov.au/valuations, or alternatively call Landgate Customer Service on 9273 7373.

Rates assessments 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.

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 2023/24 is $873.00 for Residential Improved properties and $954.00 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 (or cost of option)
  • The instalment charge is based on an administration charge of $12.00 for each instalment notice issued

Under what authority does the City charge late payment interest?

  • The City charges penalty interest of 3% per annum for rates and charges, and 11% per annum for the Emergency Services Levy 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 3% per annum for rates and charges, and 11% per annum for the Emergency Services Levy 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 red bin, the emptying of the fortnightly green waste and recycling bin and the bulk verge collection at your property. The refuse charge for 2023/24 is $360.00. The administration fee for a new rubbish bin is $164.00. For further information please call 9400 4000.

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 2023/24 year are:

  • Burns Beach – 0.37921c
  • Iluka – 0.59316c
  • Harbour Rise – 0.66266c
  • Woodvale Waters – 0.65700c

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 three to five 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:

Credit card payment surcharge

Credit cards are a convenient way for ratepayers to pay Rates and Charges, but the City incurs a substantial cost from card transaction fees passed on by the banks. As there are many ratepayers who choose not to pay by credit card, the City applies a 0.5% card payment surcharge for all rate, refuse (including any fee for Additional 240L Refuse Bin), ESL and swimming pool inspection payments made by credit card. This ensures that only those customers who pay using credit card facilities bear the cost of these charges. Please note that the other payment options available to ratepayers that do not incur a surcharge include cash, cheque, EFTPOS and BPay.

Frequently Asked Questions

Why does the City charge a credit card surcharge?

Whenever a ratepayer uses their credit card to pay their rates (and associated charges), the City is charged a merchant service fee by the banks. The City incurs substantial costs in respect of these transaction fees. A credit card surcharge is applied so that only those ratepayers who choose to pay by credit card bear the cost of these merchant fees.

I have a Visa/Mastercard Debit card, do I get charged the surcharge if I use this to pay my rates?

If you select credit when using your Visa Debit card you will be charged the surcharge, however, if you choose savings the surcharge will not be applied.

If I use Paypass or Paywave to pay my rates, do I get charged the surcharge?

When using Paypass or Paywave or another similar contactless card payment method, the payment is processed via the credit processing mechanism and, therefore, will attract the surcharge.

Why is the surcharge being charged on Rates payments only?

The City currently limits the credit card surcharge to rates payments (and associated charges) since these result in the largest credit card transaction fees, in comparison to other City fees and charges.

If I do not wish to pay the credit card surcharge how else can I pay my rates?

The City provides other payment options which are listed on the back of your Rate Notice. These include BPay, over the counter payment at one of the City’s Customer Service Centres, via Australia Post or through an arranged Direct Debit from your bank account.

In 2019/20 the City introduced a new payment method which allows you to pay BPay using your credit card. This payment method will not incur a credit card surcharge, however, you may wish to check with your bank as to whether rewards points will be awarded for your transaction. To pay your account by BPay using your credit card, log into your internet banking, choose your credit card as the account to pay from and then pay the account using the Biller Code and Reference Number from your rate notice.