Project background
Council is required to prepare a Revenue and Rating Plan and as part of this, is currently seeking community feedback on the suitability of its existing rating model. The rating model takes into account the different types of properties and their different uses, which exist in the City of Melton.
In accordance with legislation, Council adopts a range of different rates based on defined criteria to create a fair and equitable imposition of rates to each group of properties within the municipality. These are called differential rating categories.
These categories correspond with a different level to create various ‘rate in the dollar calculations’ from the base category. These are called rate levels.
What are we reviewing?
The feedback we are gathering is focused on the differential rating categories and associated rate levels. The current model is detailed below, listed by differential rate category.
We want to hear your feedback on:
- whether or not you agree with the different rating levels applied to each differential rating category
- if you think the levels should be amended, and why
- any other ideas relating to the categories and their associated levels
Please note that this process cannot influence:
- the valuation shifts that may occur within each of the differential rate categories
- the total value of rates Council will generate on an annual basis
- any of the charges levied to your annual rate and valuation notice
The survey closed on 13 May 2021. Feedback will be responded to here, and at council meetings.
City of Melton's current Rating model
Differential Rating Categories
Existing Rate Level
1.00
Purpose of Category and Level
Summarised Criteria
- Property with an occupancy permit which is primarily utilised for the purpose of residential living.
Level Justification
- Base level of 1 – majority of property owners rated under this category.
Existing Rate Level
1.50
Purpose of Category and Level
Summarised Criteria
- Primarily residential vacant land properties categorised by the zoning of the land.
Level Justification
- Generally higher to discourage land banking, and ensure an adequate supply of residential zoned land to the market demand.
Existing Rate Level
0.85
Purpose of Category and Level
Summarised Criteria
- Properties which are defined as a Retirement Village under the Retirement Villages Act 1986.
Level Justification
- Lower than base to recognise the services undertaken by the retirement village sector.
Existing Rate Level
1.60
Purpose of Category and Level
Summarised Criteria
- Properties primarily being utilised for the purposes of retail, manufacturing or industry.
Level Justification
- Higher than base to recognise that there is generally a higher capacity to pay due to the income capacity of the property.
Existing Rate Level
2.00
Purpose of Category and Level
Summarised Criteria
- Commercial/Industrial vacant land properties categorised by the zoning of the land.
Level Justification
- To encourage land development for Commercial and Industrial uses to increase local employment opportunities and stimulate economic development.
Existing Rate Level
2.88
Purpose of Category and Level
Summarised Criteria
- Properties that extract or remove minerals, earth or stone including the treatment of minerals, earth or stone.
Level Justification
- Higher than base to recognise the significant environmental impact and damage that may be caused to surrounding roads and infrastructure.
Existing Rate Level
0.90
Purpose of Category and Level
Summarised Criteria
- Properties more than two (2) hectares but less than ten (10) hectares categorised by the zoning of the land.
Level Justification
- Lower than base for promotion of cultural, heritage and tourism aspects of Council’s municipal district.
Existing Rate Level
0.72
Purpose of Category and Level
Summarised Criteria
- Properties ten (10) hectares or more categorised by the zoning of the land.
Level Justification
- Lower than base to encourage agricultural activity.
Existing Rate Level
0.75
Purpose of Category and Level
Summarised Criteria
- Any land located within an Urban Growth Zone.
Level Justification
- Lower than base to encourage agricultural activity.
