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How your rates are calculated

Rates are based on the value of each property relative to the value of other properties in Bayside.

Rates for an individual property are calculated by:

You property’s value multiplied by, Bayside’s total rates divided by the total value of all Bayside properties.

Image displaying how rates are calculated

The average rates and Municipal Charge payable in Bayside this year is $1,730.33 or $4.74 per day.

Municipal charge

This charge helps to cover the administrative costs and applies to all properties equally, irrespective of value. It is subject to the 2.5% rate cap and has been set at $144.83 for the current year.

Other charges on your rates notice

Waste charge

This pays for the weekly garbage, fortnightly recycling and garden waste, and hard rubbish collection. It also covers cleaning and waste management in public areas such as street sweeping, street bins and beach cleaning.

This year the standard bin charge has increased by 6% to cover the increased costs of waste services and state landfill levies. This increase has been offset by a one off carbon tax rebate which results in a 0.8% net reduction in the standard waste charge for 2016–2017.

Fire services levy

This is a Victorian State Government charge used to fund fire services that we are required to collect. Each property pays a flat amount plus a variable amount based on the value of the property. To find out more go to the Fire Services Property Levy website.

http://www.firelevy.vic.gov.au/

Your rates in 2016–2017

Rate capping

We have complied with the Victorian Government’s rates cap of 2.5%.

The cap applies to the average annual increase of rates and municipal charge.

Rates on individual properties may increase by more or less than 2.5% depending on changes in their relative value.

Change in property values

The Victorian Government requires us to revalue all properties every 2 years. 2016 is a property revaluation year.

In the past 2 years the value of Bayside properties have increased by an average of 20%.

Changes in property values do not affect the total revenue we receive from rates, only the share paid by each property.

Here’s how a change in value affects the rate increase on individual properties:

  • Property with below average increase in value - rate rise less than 2.5%.
  • Property with average increase in value - rate rise of 2.5%
  • Property with above average increase in value - rate rise more than 2.5%

Property rates increase graphic

Rates as a source of revenue

Rates and charges make up 69% of our revenue because we get less income from fees, grants and subsidies.

Residential rates account for 93% of rate revenue. This is relatively high proportionally due to the largely residential, suburban nature of our municipality.

While our revenue is less overall than other Councils, we use it efficiently, spending less per resident and per property than our neighbours.