Council Adopts Preferred Rating Strategy

7 October 2009

The final phase of Monash's rating strategy review has commenced with Council adopting Capital Improved Value (CIV) as the preferred option for rating at its meeting last night.

In accordance with section 223 of the Local Government Act 1989, Council will now commence the statutory consultation process.

Mayor Paul Klisaris said that the change to CIV of itself would not collect more rates from the City but would ensure a more equitable distribution and apportionment of the rates charges to 71,326 properties in Monash.

"Based on the current charges overall, 64% of all properties would be better off with the change and 69% of properties in the residential sector would be better off," said Cr Klisaris.

"It is expected that 82% of eligible pensioners would also be better off under CIV.

Council also sought feedback from the community on two options for an additional eligible pensioner subsidy but has decided not to proceed with the additional subsidy and will reconsider a subsidy for eligible pensioners in the 2011/12 financial year.

This will enable the change to CIV to be assessed and the broader impact to all ratepayers better understood."

Council voted to adopt a modified option 3 to that originally proposed and to seek further submissions on the proposed rating basis by a statutory process as required under the Local Government Act.

The basis of CIV is that this system more closely reflects the ratepayer's capacity to pay as it is linked to the value of improvements to the property. The 1.25 differential rate on commercial and industrial properties was selected because rates for these properties in Monash will be at the midpoint of neighbouring municipalities, thereby remaining competitive in attracting and retaining business investment.

Submissions in writing are invited from all ratepayers and must be received by 5pm, 6 November addressed to:

Rating Strategy Review Submissions
City of Monash
PO Box 1
Glen Waverley VIC 3150

Ratepayers may also make submissions online by visiting Have Your Say or make a verbal presentation at a special meeting called under Section 223 of the Local Government Act to be held in the Council Chamber at 7.30pm on 24 November.

Any change to the rating system will be effective from the 2010/11 financial year.

Frequently asked questions from the community information sessions, attended by 224 ratepayers in August, have been posted online at FAQ - Rates Review Information Sessions.

Council's Rates Info Hotline 1 300 538 892 is also available to ratepayers.

• Three-bedroom house
  SV value $354,000    CIV value $500,000
  Current Rates SV - $1,001
  Equivalent Rates CIV - $845
• Four storey block with 12 units
  SV value $354,000    CIV value $250,000 per unit
  Current Rates SV - $83
  Equivalent Rates CIV - $423
• New four-bedroom + study house
  SV value $354,000    CIV value $700,000
  Current Rates SV - $1,001
  Equivalent Rates CIV - $1,183
• Medical clinic with high income
  SV value $354,000    CIV value $1,000,000
  Current Rates SV - $1,001
  Equivalent Rates CIV - $2,214

These examples are for illustrative purposes only.

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Published: 7 October 2009

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