andrew63

Just got a letter from the local Council saying the rateable value of our land was $89,000 in 2002 and it is now $223,000.
Does that mean the rates will go up in such a high proportion too?
This just adds to the other thread of the ever increasing cost of living here. An observation - not a whinge!

Andrew

ABCDiamond

Technically yes , but in practice no.

The council sets a figure of what it needs, then divides it up between rateable value, and then sets a rate per $ land value. So the end result per house should be much the same as last year. Councils haven't yet set rates for next year, so no one knows for sure what the increases (or reductions) will be. I say reductions because ours were reduced last year

Most councils set a cap on rate increases of about 5-8% averaged over the whole area.
But the more expensive properties MAY go up more than the cheaper ones. ie: If some land values in your council area go up by 100%, and others by 150%, then those at 150% rise will go up more than the others.