How much do you pay in Council Rates bill p.a.?

Was just looking at the other post about power usage. What is everyone paying in Council Rates at the moment. I live in affluent Metro area in Vic. 575m2 lot with reasonable single level brick veneer house 4 plus study (28SQ Inc garage). $1973.85 PA. Gone up about $50 from last year.

For me all I get is the bins collected. Hard Rubbish 2x and fire works at end of the year which I don't think I will even get that this year. Ok so many services etc I don't get to use regularly. Sure paths and part and my parking inspector has to be paid.

Also they always give out a pathetic incentive discount to pay 6months earlier. $9. I never pay it early, Or as an OZB should I be doing that.

Thanks for looking. Great posts guys. Really interesting to see what others are paying.
Thanks to @barga in for Vic Council info

www.knowyourcouncil.vic.gov.au

Poll Options

  • 169
    1000-1500
  • 240
    1501-2000
  • 117
    2001-2500
  • 62
    2501-3000
  • 20
    3001-3500
  • 13
    3501-4000
  • 33
    4000+

Comments

  • +8

    Nth Coast NSW 1100m2 block 40 square home = $3k plus water usage around $4-500. Bins is it. Highway robbery lol.

    • Why so much? And why does this include water usage? Arent they separate bills?

      • Regional councils who knows, i said plus water usage.

  • +9

    $2800/yr. Regional town, 600m2 block with a four bedroom house. Every year our rates go up by the maximum allowed (no early discount offered).

    • We get a discount, but it's not like the amount offered is even an incentive. I think the money is better in my hands than the Council's. Sounds like at least the rate seems reasonable. Do you have proper bitumen roads where you live? Is it in an estate type development. I know that they seem to be higher as the internal infrastructure needs to be maintaine.

      • I live right in the middle of Mildura. I think the house was built some time around 1950, it's not a new development area. Plenty of dirt/one lane roads outside of town.

        Last year we finally got given green bins (for garden waste) but the regular bin collection was reduced to two weeks instead of weekly, so it's not like they're doing more collection runs.

        • +1

          Gotta pay for the disposal of all those Meth precursor chemicals somehow.

    • That's crazy! Are rates typically more expensive in regional towns? What state is this?

      • +6

        Supposedly, less density means a higher cost per property to cover services. According to the council.

        • +2

          I believe that to be the reason. And you end up getting less services to use.

        • +1

          This makes perfect sense. There are substantial fixed costs which are spread over the number of properties, and then variable costs. Think about the garbage pickup. They have to run a truck and a bloke weekly irrespective of whether it's for 1 or 100 houses. At some threshold they might need more runs/trucks, etc. The variable costs include recycling/landfill costs which is proportional to the number of properties.

          • @ihbh: Ok, but rates are set per property. I've got a dozen neighbours within a stone's throw, all with kids, dogs, lawnmowers that should have been retired 20 years ago and terrible taste in music which they feel the need to inflict on everyone else. Why am I subsidising the cost of collecting the garbage from Joe Blogg's house, who lives in the peace and quiet 10kms out of town with no neighbours within shouting distance?

            • @ssquid: Why are people who live in the city subsiding the infrastructure costs of rural towns? You think your rates are actually paying for the true cost of delivering roads, water, sewerage and telecommunications? Be careful what you wish for - especially considering you're someone who lives in a Victorian rural town which is a basket case economically speaking.

              • +1

                @Tyrx:

                You think your rates are actually paying for the true cost of delivering roads, water, sewerage and telecommunications?

                Well, no. That's infrastructure. My taxes pay for that and are based on what I earn, not where I live.

              • @Tyrx: My council spends our rates on sending councilors on international "sister city" visits, manufacturing banners and flags with political messages I disagree with, getting involved in political matters which have nothing to do with local government etc etc. On the odd occasion they collect the rubbish or fix a pothole, but you have to ask nicely and hope they can find money in the budget.

                • @endotherm: Sounds similar to our council. Councilors were all recently deemed incompetent and given the bullet.The only time I have seen any progress was is when an administrator is appointed (this isn't the first time)….

        • What about public transport?

        • Regional areas have much higher maintenance costs per property however this is generally not the case for those who live in the urban part of regional cities like Mildura.

          The biggest maintenance costs are associated with larger properties, for instance 8000sqm properties used for rural living. So you may be subsidising them.

          The way that councils are allowed to charge for rates is based on property values and not property density, in spite of density having a major impact on Council maintenance costs. So in regional areas with a mix of housing densities some properties pay too little and some too much

        • damn. expensive af

        • I basically live semi-rural on a large block (Kalamunda WA) and my rates are significantly less than properties that are in more built-up shires nearby. We have bin collections but we are not on mains sewage (septic system). I'm not sure if sewage charges are paid via shire rates or to Water Corp?

          • +1

            @R4: Sewerage makes up the majority of my water bill ($122 out of $194 last quarter).

      • +1

        I have a city house in Bayside Vic, rates are $2,800. Rates went up as the council was one of the few which made a profit, so the State Govt merged a bundle of debt ridden councils into it.

        My 'shack' in the country is worth about 1/7 the cost of the city house but rates are $1,800, It has town water, sewerage and waste collection, limited bus services and a mobile library service.

        A mate has a similar shack down Venus Bay but his rates are over 3k. He had dirt road access, no town water, sewerage, garbage collection but there is a dump point near town. I do not think there are any public transport.

        The rate differences are due to population density, road density, bridges and services such as Library, parks etc. My country shack does well with the rates because there are quite a lot of houses within the council area in popular holiday areas. In contrast Venus bay is sparsely populated but there are a lot of roads to maintain. Bayside has all the bells and whistles but park services are expensive to maintain and costly to create.

        • A mate has a similar shack down Venus Bay but his rates are over 3k. He had dirt road access, no town water, sewerage, garbage collection but there is a dump point near town. I do not think there are any public transport

          That's crazy, I was thinking of moving down around there somewhere in the future, now reconsidering. So he is just paying for the maintenance of roads?

          The rate differences are due to population density, road density, bridges and services such as Library, parks etc

          Yeah that makes sense, but why does council rates change with value of the house as well? The services are the same right ?

          • @[Deactivated]: He is paying for a share of any and all services provided by council in the area -including those he does not get.

            It is convenient for council calculate the share based on house price. It is more of a means pays system with land value being used as proxy to determine your means.I do not believe it is fair insofar as 2 people in the best house would use the same amount of services (and probably less) than 2 people in the worst house in the suburb.

            Council provides other services beyond road. There is drainage, planning and local law enforcement (parking officers and tree inspectors), walkways and parks, football fields, meeting halls, waste management and family services - daycare, kindergarten, playgroups, maternal health, aged care. Also disability services etc. Councils do not spend much on family services, more is spent on aged care and planning etc.

            You can get truly screwed over living outside of the cities.

  • +4

    What council?/

    In metro areas, the major factor of what is your council rate is is the value of your house in relation to the median property in your council.

    House A and House B are both worth $1m.

    House A is in an expensive area where the median value of the houses are $2m. Council rates may be $1,200.

    House B is in an cheap where the median value of the houses are $500k. Council rates may be $3,500.

    I'm fortunate, the median council rates in my area (Monash) are the lowest in my state. Futhermore, everyone will receive a 10% discount in 2020/21 due to Covid.

    • +3

      Cheaper suburbs pay higher rates? Wth.

      • +5

        Not exactly. Read again.

        Here's another example.

        House C is valued at $2m. House D is valued at $500k.

        House C is in an expensive area where the median value of the houses are $2m. Council rates may be $2,000.

        House D is in an cheap where the median value of the houses are $500k. Council rates may be $2,000.

        The cost for infrastructure, roads, services etc are similar in cost regardless if the median value of property in the council is $500k or $2m.

      • That seems to be the case I have seen in NSW.

    • +5

      I don't really understand why everyone isn't getting discounts when things like libraries, pools, tourist info centers etc. weren't/aren't operating. They're services we paid for that weren't provided.

      • That's a very good point… speak to your council, but probably too late as council have already/will soon issue rates.

        I'm fortunate I don't have to ask.

        • That's a laugh. They're increasing by the maximum allowed (2.5%), like they always do.

          • @ssquid: My council increased it by 2.5% and then gave an one off discount of 10%.

            This way it won't affect the future rates.

      • What about the increase in costs to run the council due to Covid?

      • I don't really understand why everyone isn't getting discounts when things like libraries, pools, tourist info centers etc. weren't/aren't operating. They're services we paid for that weren't provided.

        They didn't just disappear into thin air. They still have all the fixed costs involved in having them on standby ready for the moment things open up again. If they shut you library/pool for good then yeah, a discount would be good.

        • How come I still have to pay for pool acess when it's included in thr rates?

      • +1

        It would be nice, however they still have operating costs. I’d say they would have kept most staff, except maybe some casuals, and will have diverted them to different duties. Some of the additional activities in my area have been cleaning the books as they come back to the library, putting up social distancing signage, responding to community enquiries, developing tourism and small business strategies for during and post pandemic. The buildings and facilities need to be maintained etc. Rates aren’t a direct user pay, fee for service transaction, it’s the overall cost of council activity and service.

    • There is no way my Council is going to give out a 10% discount.

  • +4

    I used to own in Blacktown. The incentive one year was chance to win a ride in a V8… plus buy one get one free Big Mac.

    • I assume the ride in the V8 allowed a couple of burnouts?

      • No, it was a one way trip to the cop shop.

    • But the council had enough money to send a large Trade delegation to India, your rates get wisely spent. Never heard anything about results, but looking at all the Indian take away places it was successful.

  • +3

    In NSW, council rates for residential property only relates to land value plus bin services, nothing to do with house/building value. The land value for 2019 is used to caculating rates for this financial year and the coming two years. Rates seems to be much lower for commercial property.

    • Why do rates correlate to land value?

  • +2

    Seems a lot for an effluent lifestyle…

    • +5

      Errr…

    • +2

      At the moment it is shit. 2020 a write off. Oh and I still have mow my own nature's trip even though I don't own it.

      • Don't maintain land that isn't yours. There no law that says that you're liable for accidents on crown land.

        • +2

          So your naturestrip lawn is overgrown. Because council won't do it.

          • +1

            @Melb69: I cut it when I want to park at the kerb. Keeping it long stops the neighbourhood dogs and cats (stray or otherwise) from doing their business in the grass.

            However, I do keep a section clear for the postman.

    • $2400 and council wants us to cough up the money to change from CWMS to sewage system even though they been collecting $2k between every emptying. state gov has offered most of the cost but local gov just bought new facilites. there will be a revolt

  • +2

    The whole of the council rates process is a farce.
    They simply decide on how much they want to spend and then levy rates to obtain the required amount.
    A typical household budgeting exercise is the reverse - the household has a certain income and expenditure is limited to that amount. Unless of course one elects to live beyond their income and rack up their debt level.

    • +1

      We are talking politics here, its not supposed to make sense!

    • I agree, however it’s like any tax really. Technically it’s a democratic process, if you don’t like how they are operating and setting rates vote them out or become involved in council. however we know it’s not as simple as that in reality. In my area the same councillors and mayor have a very comfortable majority.

  • +1

    I believe the rates In Vic are based on a land valuation then a rate is applied across the suburb. The land value having nothing to do with what your property value is. In any event suppose they need to work a rate out somehow. So the Council has all this money to waste through poor management and to justity Councillors salaries. Don't get me started on the incompetence of the planing department. IMO

    • +1

      The valuation is for apportionment btn properties.

      First determine budget for next year. Then assess value of properties in the same way to apportion next year's budget. B/V = rate; the rate is irrelevant. E.g. if the valuation was based on units 10x less, the rate would be 10x more, but the dollars would be the same.

    • It’s never made sense to me why rates are set in reference to land or property value. We pay higher rates because we live in a more desirable part of our suburb i.e. near the beach and cafes, where land value is higher. But we don’t get anymore services than people who live in a less valuable area. In fact lots of people from outside our area come in to enjoy said beaches and cafes. parks, footpaths, libraries, pools etc are available to everyone no matter their land value. To be fairer perhaps land or dwelling size might make more sense, but even that’s not clean. I suppose it’s meant to be like taxes where more affluent people pay more to support the less fortunate, but living in an affluent area doesn’t necessarily mean you’re affluent, some people bought into the area when it was far cheaper.

    • Councillors earn very little about 20-30k it's not their full time job. The mayor earns about 80-100. They generally all have full time jobs. They are elected by the community and typically become councillors to improve the community. They have to attend plenty of meetings weekly, attend community events, respond to residents and read volumes of material so they can cast votes on how money is spent. If you don't like how your council is being run look into getting registered for the next election to become a councillor.

  • +2

    Which area in metro Melbourne OP? Because I live in Stonnington and that seems very reasonable for a 4 bedroom house.

  • Why don't you put the poll as rate p.a. per m2 (it's based on valuation which varies with block size generally for the area)?

    For example, properties in the wealthier areas have bigger blocks and so the $ rate might be higher, but per m2 might be comparable.

    Thank goodness I live in a Liberal stronghold, reasonable rates for block size and great services.

    • Block size doesn’t always relate to land valuation. A small block in Sydney’s Paddington will be valued higher than a large block in Liverpool. He’s how it’s work out in QLD where I live https://www.qld.gov.au/environment/land/title/valuation/abou… I personally don’t agree with land valuation determining rates. Perhaps I’m a little selfish as I live in an area with high land value, but my block size and amenities are the same as people living in less affluent/valuable parts of the suburb, who pay lower rates.

      • A small block in Sydney’s Paddington will be valued higher than a large block in Liverpool

        That's stating the obvious. Are they in the same council?

        However, for a council area, the land size is roughly proportional to the valuation.

        • Yeah that probably makes sense in some areas. Where I am on the Gold Coast the land value goes down rapidly as you move away from the sea. So people who literally use the same library, parks, foreshore, streets etc have vastly different valuations for the same size block. In the realm of $900k vs $600k 2km away.

          • @morse: The valuation is used by councils to systematically allocate the total dollar rates between dwellings (based on usage, affordability, ease, etc.).

            • @ihbh: Yes, absolutely. I know there has to be a system. I just think in some areas it doesn’t make sense to set rates off land value, where there are vast differences in land valuation for blocks of the same size, accessing the same amenities. I’m actually generally a bit of a lefty (I probably shouldn’t announce that), so not opposed to more affluent people paying proportionally more tax, but it doesn’t make sense to me when in comes to rates at least in the context of an area with vastly different valuations. I did a quick search and found properties with comparable size and same zoning and useage in my suburb within 2km of each other with land values of $1.75million, $750k and $550k. I haven’t gone as far as calculating rates for all of these properties, but having discussed with friends it does impact on rates.

              • @morse: You're raising the issue of equity vs efficiency. Trying to perfect equity can reduce efficiency so much that everyone is worse off.

                … A problem with multiple allocation approaches (which require consultant costs, more administration costs, etc.) is that some will benefit and some will lose out. So there needs to be dispute mechanisms, etc., which increases the total council budget, making everyone worse off (on top of the allocation outcomes).

                • @ihbh: True re equity vs efficiency, if it was efficient, the process for land valuation actually seems pretty inefficient, as opposed to some sort of formula for just land size, location and usage type. There already is a dispute process for the current system. The current system promotes equity based on presumed affluence, I’m suggesting equity of process, which should be more efficient. Of course when applying any algorithm, there will be winners and losers. I just feel land valuation in this context is not the best fit. Luckily even though our rates are on the higher side, we can afford them and we do use the services, so I can’t really complain too much. I do feel for some of our neighbours who bought in the area before prices went up a lot.

  • It's more just as a discussion point and I thought it was probably hard enough getting someone to look at their rate notice let alone then trying to work out an actual rate/M2 for their own property. Makes me feel better that I'm paying less then $4k…:)

    I know that if you feel your rates are high you can get it assessed, but it may backfire and you end up paying more because the overall rate might have been lower than it should have. This can possibly happen if you house is old and they haven't updated rates properly for you house or the like. At some stage we had very low rates notice.

  • +22

    The rates pay for a lot more than bin collection.
    Do you not use local roads? Do you think there should be no development planning process?
    No parks, sports grounds, swimming pools, libraries?
    Happy if somebody dumps a car or a load of asbestos out the front of your place you’ll sort it out?

    Weed control, animal control, public toilets, footpaths, bus stops, zebra crossings. I mean, local government probably provides the services that you are most in touch with in your day to day life, assuming you aren’t at school or in hospital.

    • Most people want to PAYG until they find out when they need the service it isn't there…

    • +4

      Swimming pools are already user pays.
      Planning also is not a free service. Every building/demo/search process involves a fee.
      Many posts here have complained about Council failing to act on complaints - including planning and dumping issues.
      Council rates (at least here in WA) are set by Gross Rental Value. So most years owners get a double whack - their GRV increases so they are paying more, PLUS the amount in the dollar paid based on GRV also goes up.
      As someone has already said, the rate setting process for council is backwards - they work out how much they want to spend, then set the rate to compel their captive ratepayers to meet their never-ending appetite for more.
      And most councils spend a sizeable chunk of money not on service provision or assets, but on salaries - in my council's case about 50% of the budget is wages.
      There's plenty to complain about when it comes to Councils and rates.

      • +3

        Not trying to be obtuse, but how do you think services are provisioned if not by paying people wages to provide them? And do you not think that rates should rise as those wages do?

        I guess there will always be complaints about poor service. In your post you both complain about poor service, and the size of rates. That probably suggests the balance is about right - the complaints would be louder about service problems if the rates were lower, and the complaints about the cost would be more if the rates were higher, even though that money would be spent on more/better services.

        • +10

          Interesting argument.
          Average wages in Australia have risen by just over 2% over the last few years.
          Average council rates have increased by many times that amount.
          Do you think Council service provision has kept up with the rise in rates above average wage growth?
          As an example, my rates have increased by over 324% over the last ten years. In that time wages have grown about 3% per annum,
          Do I think I get about 300% more service from my council??? Take a guess…

          • @Almost Banned:

            my rates have increased by over 324% over the last ten years.

            Is that with your property staying at the same value?

          • +1

            @Almost Banned: In Victoria we have rate capping which means that the average rates cannot increase more than rate set by the Local Government Minister. Generally the cap is about 2-2.5%, somewhat inline with inflation. Councils have to apply to the Essential Services Commission to be able to increase their rates higher than that. It is the general rates and municipal charges that is set at this rate not including waste charges and other levies.

            • @kanmen: Hello. Few Q's

              https://imgur.com/a/Zuv3YW2

              1 ) Can we pay in one go? (first pic)
              Reading the back now ^just noticed under Single payment says doesn't "offer a pay in full" option?
              (Which sounds bit strange if this is a misprint or something, since we remember usually paying off the annual Rates and Charges in total.)

              2 ) Do we have until February to pay it off in full (as opposed to the 30 Sept instalment deadline?
              I saw somewhere that was an option but unfortunately could not find again :/

              3 ) Can we make our own Weekly payments that will reduce the Total amount over time (up til Feb, or May)? (second pic above)
              It all sounds a bit conflicting to me.

              I'm asking these in case I can't get a hold of them Sunday(not sure if they're even open), which is the first/installment due date apparently…

              • @capslock janitor: Heya! I've just seen this so maybe by the time you see my response you may have gotten a hold of them on Monday!

                So I actually own property in CGD with my parents! I was under the impression that you could pay in one go, however that payment needs to be made by the September 30th deadline. Other councils allowed you to pay in full in February but CGD did not. According to what you have there though, it seems like the payments must be made in the 4 instalments or you can apply for 9 monthly instalments or you can enter into an alternate payment plan with council. Doesn't seem like there's the option of a full payment.

                We've always done the 4 instalments though.

                Also, today is the 30th of August, seems like payments are due 30th of September? You have a month?

      • in my council's case about 50% of the budget is wages.

        Is this wages to the council or wages in total i.e garbage man, weeder, paying contractors etc

      • +7

        Sorry to burst your bubble.

        For swimming pools, councils do not charge enough to cover the cost of maintenance let alone the initial capital outlay. Most pool visits are subsidised by the local council/people. The user has to pay so that they won't lose as much money (like public transport).

        https://www.smh.com.au/national/nsw/with-another-pool-closed…

    • Remind me again why I pay 30 to 40 percent taxes on wages ?

      • +1

        Well, you almost certainly don’t.
        Everyone earning less than $3500 a week pays less income tax than 30%.
        But if you do earn in the top couple of percent in income, your income tax pays for aged pension, other welfare, schools, hospitals, Medicare, defence, dams, large bridges, universities, large roads, weather forecasting, police, judiciary, fire fighting and the many other services funded from federal taxes (which includes large pass through to states for delivery).
        Local government rates fund local services, but local government also receives funding from state and commonwealth, usually tied to specific projects or initiatives.

        When you do your tax return, the ATO will send a letter with a breakdown of where your personal income tax contribution ended up.

        • ATO will send a letter with a breakdown of where your personal income tax contribution ended up.

          Last year, it showed 7% of mine went to Dan's "Red Shirts"

    • Do you not use local roads?

      VicRoads pay for those.

  • +1

    . .

  • I pay $980 annually for a one bedroom apartment in Melbourne CBD.

  • +1

    Why not stand for Council and change things?
    https://www.bayside.vic.gov.au/bayside-city-council-election…

    • Yeppers. It is what it is. I can always move somewhere else to find cheaper rates. It's a lifestyle they say. :)

  • $3200 p.a

    200,000m2 in regional town.

    Road grading and rubbish collection are the only services I use.

    No green waste collection but allowed to burn off. Should invoice council for my annual awesome bonfire in September.

    • 200,000m2

      Nice. Do you have a pond?

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