RATES AND CHARGES Frequently Asked Questions WHO PAYS LOCAL GOVERNMENT RATES AND THE EMERGENCY SERVICES LEVY? Anyone owning residential, vacant, industrial or commercial property in the City of Nedlands is a ratepayer and is required to pay rates and the Emergency Services Levy. Some Government bodies, educational and registered charitable organisations are exempt from paying Council rates All properties with a rubbish services pay rubbish service fees. CAN I OBJECT TO PAYING MY RATES? There are only 2 reasons under the Local Government Act 1995 which allows for an objection to rates. You are not the ratepayer of the land (eg not the owner of the rateable land) The land is non rateable as per Section 6.26 of the Local Government Act. Unless either of there two criteria are met, there is a legal obligation to pay the debt. WHAT IS GROSS RENTAL VALUE? GRV means the gross annual rental that the land might reasonably be expected to realise if let on a tenancy from year to year upon condition that the landlord is liable for all rates, taxes and other charges thereon and the insurance and other outgoings necessary to maintain the value of the land. Every three years the Valuer General’s office conducts revaluations on all land within the state. As required under the Valuation of Land Act, these new valuations are supplied to each local government for their district. Your valuation is shown on your rates notice as GRV (Gross Rental Value). Where an annual rental cannot reasonably be determined, the GRV shall be the assessed value. Assessed value is defined in the Valuation of Land Act 1978 as a set percentage of capital value, currently fixed by regulation at 5%. For example, vacant residential land for which no rental value can be determined is currently valued on the basis of 5% of its total capital value. The City of Nedlands has Differential Rating. This means that Residential & Non residential properties are rated using their GRV and a different rate in the dollar determined by Council. Check out our Reasons and Objects for more information on why we use Differential Rating. Trim Ref: M09/8286 Page 1 of 5 Date last revised: April 2009 City of Nedlands Rates and Charges Frequently Asked Questions HOW ARE MY RATES, ESL AND GRV CALCULATED? Rates are calculated by multiplying a property’s Gross Rental Value (GRV) by the rate in the dollar set by Council. For example: In 2008/2009 financial year, the Nedlands ‘rate in the dollar’ for Residential properties is $0.04802 and $0.06683 for Non-residential. The Valuer General may determine that a brick and tiled house in Nedlands which contains 4 bedrooms, lounge, kitchen, bathrooms, laundry and double carport could attract a rent after basic expenses of $500 per week. Rent of $500 per week multiplied by 52 weeks per year gives a GRV of $26,000 GRV = $500 x 52 - $26,000 The rates to be levied against that particular property would be: Rates = $26,000 x 0.04802 = $1,248.52 Gross Rental Value of $26,000 multiplied by the rate in the dollar of 0.04802 gives the value of rates for the property of $1,248.52. The Emergency Services Levy (ESL) which is payable to FESA not the City of Nedlands, levied against that particular property would be: ESL = $26,000 x 0.0117 = $304.20 (this is above the ESL maximum of $215.00 for 2008/09). Gross rental value of $26,000 multiplied by the rate in the dollar of 0.0117 give the value of ESL for the property of $215.00. A separate charge is levied for a Rubbish Service for each property for the year. This covers a weekly pickup and a fortnightly pick on alternate weeks for recycling and green waste. A Swimming Pool fee may appear on your notice if you have a swimming pool or spa. WHAT IS THE MINIMUM RATES? Each year Council also sets a minimum charge based on the basic services provided by Council. If the calculation of the GRV by the rate in the dollar results in an amount less than the minimum charge, then the minimum amount will be raised This year the City’s minimum rates are Residential $884.00 and Non-residential $1,200.00. FESA has set the ESL minimum rate for ESL Category 1 at $40 and a maximum rate of $215.00 this financial year. Trim Ref: M09/8286 Page 2 of 5 Date last revised: April 2009 City of Nedlands Rates and Charges Frequently Asked Questions CAN I OBJECT TO MY PROPERTY’S VALUATION? Appeals against valuations must be made to the Valuer General in writing within 60 days of the receipt of the rate notice. Official forms and information are available at the Council Office or at www.vgo.wa.gov.au. Where an objection to the Valuer Generals’ Office (VGO) has been made, the full amount of rates is still due and payable 35 days from the date of issue of the rates notice. Any decision resulting from the objection or subsequent Land Tribunal hearing will be retrospectively adjusted. DO I PAY GST ON MY RATE NOTICE? GST is not payable on general rates, ESL or rubbish charges. However, GST is payable on Pool Inspection Fees. WHAT ARE THE CITY OF NEDLANDS PAYMENT METHODS? The City has endeavoured to provide a wide variety of convenient payment methods for it ratepayers. Payment methods available for payment of rates include: BPay Payment over the internet Payment over the phone Payment at Australia Post Payment in person at the City of Nedlands Payment by mail to the City of Nedlands WHY SHOULD I PAY BY THE FIRST DUE DATE? To avoid being charged penalty interest (Pensioner’s and Senior’s are exempt form interest charges) and to register automatically for the instalment options if you choose to pay by instalments WHAT ARE MY PAYMENT OPTIONS? The City offers the option to pay your rates in full or by 4 instalments. To offset the cost of offering the instalment option the Local Government charges an instalment fee. To qualify for the instalment option the ratepayer must pay any arrears and the full amount of the first instalment by the first due date. The payment must be received by the City by close of business on that date. No responsibility can be taken for any delays encountered in the delivery of the mail. Trim Ref: M09/8286 Page 3 of 5 Date last revised: April 2009 City of Nedlands Rates and Charges Frequently Asked Questions The due dates for payments of rates by instalments for the 2008/2009 rating year are: Instalment Number Due Date for Instalments 1st Instalment 14 October 2008 nd 2 Instalment 16 December 2008 rd 3 Instalment 17 February 2009 th 4 Instalment 21 April 2009 I PAID LATE …CAN I STILL PAY BY INSTALMENTS? The instalment option is not available when you paid late. This is a very complex issue in which the City has very little discretion as it is controlled by State legislation. The City is specifically prevented from allowing late instalment payments under the Local Government Act Section 6.45 and Regulation 60 after the due date for the first instalment. However, the City recognises that people sometimes inadvertently overlook the due date or underestimate the time in which mail takes to reach its destination. When the City receives a rates payment too late to qualify for the instalment payment option under the Local Government Act, it has been determined that the most practical compromise for all parties is to accept the payment as the first instalment of an informal payment arrangement which just happens to have the same due dates as would have existed under the approved instalment payment scheme. This offers a number of benefits Time, money and effort is not wasted on returning the payment to the ratepayer with an explanatory letter; The City fulfils its legislative requirements as discussed above; The ratepayer avoids the $5.00 administration fee on each instalment. In return for this the ratepayer must simply accept responsibility for making the payments on the due date as there are no reminder notices issued. The City is happy to allow this informal payment arrangement which can be effected simply by notifying the City's Rates Officers by e-mail at rates@nedlands.wa.gov.au or on 9273 3506 that the ratepayer will be making the remaining payments on the advertised due dates for instalments. However, the City will not give consideration to the waiving of interest charges. The ratepayer will have to call to obtain a final pay out figure if they choose this option. INTEREST ON OVERDUE AMOUNTS To ensure that the many ratepayers who pay their rates account to the City by the due dates are not disadvantaged, the City of Nedlands has resolved that it will charge interest on rates balances which remain unpaid after the due date. Trim Ref: M09/8286 Page 4 of 5 Date last revised: April 2009 City of Nedlands Rates and Charges Frequently Asked Questions Council has resolved for the 2008/2009 year to charge a daily interest rate of 11% pa calculated daily on outstanding rates. Penalty interest will not be charged on current and deferred rates of eligible pensioners. Ratepayers who have elected to pay by instalments are also exempt from penalty interest providing that all instalment payments are made by the due dates. WHAT ARE INTERIM RATES? WHY HAVE I RECEIVED AN INTERIM RATES NOTICE? Some ratepayers may receive amended rate notices during the year called Interim Rates Notices. These notices are required to be issued if the Valuer General's Office considers that the Gross Rental Value (GRV) of a ratepayers' property has changed. Typical events which could trigger a revaluation and the need to issue an Interim Rates Notice include: Subdivision / Strata of land or Amalgamation of land (creation of a new lot/s.) Improvements or additions to the property (building a new house, construction of a garage or carport or the addition of a bedroom) Demolition of improvements (demolition of a building) Additional rubbish service ordered Your Interim Rates Notice will show the reason for the amendment and effective date of the valuation. RECOVERY OF RATES Rates and services are payable in full within 35 days of the date of issue or the original rates notice or if paid by instalments by the instalment dates shown. Any rates outstanding after these dates may be recovered by legal action. Legal costs incurred as a result of legal action will be added to your account. If due to circumstances you are not able to pay your rates in full or by instalments, please contact the City’s rates officer to make an alternative arrangement in accordance with section 6.49 of the Local Government Act. A special arrangement fee is applicable. If payment falls into arrears for a period of three years or more, the Council may take the land and let it on lease, sell the land, have the land vested in the Municipality or have the land revested in the crown. Trim Ref: M09/8286 Page 5 of 5 Date last revised: April 2009