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Monash Rates Review
Monash is considering options to change the way your rates are calculated.
Proposed Change to System for Valuing Land and Calculation of Rates to CIV
Frequently Asked Questions from the INFORMATION SESSIONS
Please download printed version of this document or read the text below:
Rates Review - Brochure [.pdf] 730 Kb
What options are being considered?
Council is currently reviewing the way we calculate rates within the City of Monash from the 2010/11 financial year.
Currently properties are rated based on the Site Value (SV) of the property.
Options to change to Capital Improved Value (CIV) are being considered to create a fairer rating system whereby at least 63% of residential ratepayers would pay less rates, 37% would pay more.
The rating options being considered
- Site Value (SV) calculates your rates based on the land value.
- Capital Improved Value (CIV) calculates rates on the total value of the property including all land, buildings and improvements.
- CIV with Differentials (150% of CIV) allows for various levels of rates for different property categories eg. residential, commercial and industrial.
Under Site Value, all of these properties pay identical rates.
Under Capital Improved Value, rates will be payable relative to the level of improvement to the property.- Three-bedroom house
SV value $354,000 CIV value $500,000
Rates SV $1,001
Rates CIV $885
Rates CIV + Diff (150%) $802 - Four storey block with 12 units
SV value $354,000 CIV value $250,000 per unit
Rates per unit SV $83
Rates per unit CIV $443
Rates per unit CIV + Diff (150%) $401 - New four-bedroom + study house
SV value $354,000 CIV value $700,000
Rates SV $1,001
Rates CIV $1,240
Rates CIV + Diff (150%) $1,123 - Medical clinic with high income
SV value $354,000 CIV value $1,000,000
Rates SV $1,001
Rates CIV $1,771
Rates CIV + Diff (150%) $2,657
Capital Improved Value more closely reflects the capacity to pay; 60% of residential ratepayers would pay less rates, 40% would pay more.
Under CIV with Differential (150% of CIV) on commercial/industrial properties; 74% of mainly residential ratepayers would pay less rates, 26% would pay more.Frequently Asked Questions
Why is Council looking at changing its rating strategy?
To ensure we have a fair rating system for all ratepayers.
There are currently many inequities in the rating system that can be demonstrated by looking at the rates paid by a single dwelling compared to a multi-dwelling (block of units), a commercial property or a significantly improved property.
Will this mean Council will collect more rates?
A change to CIV will not collect more rates. Any change would redistribute the total amount of rates collected in a different way.
Who will be worse off by a change to CIV?
Those properties with a higher level of capital improvement on their land eg. commercial, industrial and high value residential.
Currently the commercial and industrial sectors enjoy especially low rates in comparison to the residential sector and other municipalities. They can also claim rates as a tax expense, while residential ratepayers cannot.
How will Pensioners be affected?
75% of pensioners would pay less rates, 25% would pay more, with a change to a uniform CIV rate.
As part of this review process, Council is considering a further pensioner rebate of either $50 or $100 in addition to the State Government rebate.
To find out more
Frequently Asked Questions from the INFORMATION SESSIONS
- Mulgrave Community Centre
- Wellington Rd, Mulgrave
10 August at 7pm - Monash Civic Centre
- 293 Springvale Rd, Glen Waverley
12 August at 7pm - Oakleigh Seminar & Training Centre
- Atherton Rd, Oakleigh
13 August at 7pm - Mt Waverley Community Centre
- Miller Cres, Mount Waverley
17 August at 7pm - Monash Civic Centre
(for commercial and industrial ratepayers) - 20 August at 7pm
- Oakleigh Seminar & Training Centre
(for commercial and industrial ratepayers) - 24 August at 7pm
There will be regular updates in the Monash Bulletin and on Council's website over the coming months.
Any change adopted by the Council would be reflected in the rates for the 2010/2011 rating year.
How Rates Are Calculated based on 2009/10 Rate Notice
To calculate an approximate rate under the options being considered multiply the 'Rate in Dollar' with the Site Value (SV) and Capital Improved Value (CIV) on your 09/10 Rate Notice.
Eg. A property with a SV of $354,000 and CIV of $500,000| Option | Rate in Dollar* | SV or CIV | Est.Rates |
|---|---|---|---|
| 1 - SV | 0.002828 | X $354,000 | = $1,001.10 |
| 2 - CIV | 0.001771 | X $500,000 | = $885.50 |
| 3 - CIV with Differentials (150% of CIV) rate on Commercial / Industrial properties | |||
| Residential | 0.001605 | X $500,000 | = $802.50 |
| Commercial /Industrial | 0.002657 | X $500,000 | = $1,328.50 |
* Rate in dollar figures for Option 2 & 3 are estimates only.
NB. Actual rates will change for 2010/11 due to the biannual revaluation of properties
Updated: 10 November 2009
[ Up: Rates and Valuations ]