Changes to your rates

Council rates are a property tax and are a source of Council revenue. Rates are used to provide essential infrastructure and services.

This includes footpaths, resealing roads, and stormwater drainage as well as community facilities (parks, gardens, libraries and pools).

Rate harmonisation is a process where we move to a single rates system that uses the same method to calculate rates across the Bayside local government area.

Council is required to create one general rating structure as a result of the amalgamation that created Bayside Council in 2016.

In 2021 the NSW Government amended legislation to allow amalgamated Councils to introduce rates harmonisation over several years. On 9 June 2021 Bayside Councillors voted in favour of introducing harmonisation over four years. Our approach was also approved by the Independant Pricing And Regulatory Tribunal.

It means that all ratepayers across the Bayside LGA will gradually move towards the same minimum rate as well as their rates being calculated using the same formula.

Not everyone will pay the same rates for their property as rates are calculated using the unimproved land value as decided by the NSW Valuer General. All properties have different land values. The formula to calculate rates will be the same across all rating categories.

This process will remove inequity in the scheme by applying a consistent formula for calculating rates across the all Bayside ratepayers.

Rate Harmonisation will see some rates increase and some decrease.

Remember, there are other factors that affect the rates calculation, including:

• yearly increases in line with the rates peg
• your land valuation, which is assessed every 3 years by the NSW Valuer General. The most recent valuation was this year and will be applied in the 2020/21 financial year.

Land values are one factor used by Council in the calculation of a landowner's rating liability. Increases in land values do not necessarily lead to similar increases in rates. Changes to land valuations do cause a redistribution of the rates levied across categorised properties, but individual rates may not go up and down in line with the property value.

Learn more about how we calculate rates.

If you are experiencing hardship and receiving Australian Government payments, you may be eligible for a rates deferral or payment arrangement.

Apply to change your rates payment.

Each Council in NSW is able to determine their own minimum rate.

For 2020/21 the former Botany Council had a minimum of $552.62 while the former Rockdale Council has a minimum of $768.52.

The former Botany Council minimum was much lower due to the residential rates being subsidised by the business rates.

This would mean we would collect $28 million less in rates revenue each year.

This would have a big impact on our ability to deliver services. This could also affect the standard of maintenance and the quality of facilities we provide including parks, open space and sporting facilities.

Prior to amalgamation the former Rockdale Council applied for a special rate variation so that they could afford to upgrade and mainten the infrastructure across Rockdale.

As part of the amalgamation, we were able to continue the special rate levy solely for Rockdale ratepayers.

Botany ratepayers did not have a special rate levy for infrastructure assets attached to their rates and will not be required to pay the Rockdale special rate as part of rates harmonisation.

Council rates that are above the minimum are calculated based on the value of your land, as determined by the NSW Valuer General.

The valuation process is not determined by Council.

We receive the updated land values from the NSW Valuer General at least every three years. The last revaluation came into effect on 1 July 2020. Any significant fluctuation in your land valuations may have an impact on the amount of rates you pay.

You can find further information about the NSW Valuer General valuation process on their website.

Generally, businesses pay a higher rate across the Bayside local government area than residential rate payers.

For those businesses that pay the minimum rate they are paying the same as residents who pay the minimum rate.

Since the amalgamation of Rockdale and Botany Councils in 2016, we have been required to maintain two rating systems. We must create one consistent rating system  to ensure a fairer approach for all ratepayers, regardless of dwelling or business type.

For 2020/21 the former Botany Council had a minimum of $552.62 while former Rockdale Council had a minimum of $768.52. The former Botany Council minimum was much lower due to the residential rates being subsidised by the business rates.

To ensure equity in the rates and annual charges across the Bayside area, we will gradually move to a harmonised and equity based minimum rate and rate in the dollar.

Overall, we won't be collecting any additional revenue through this process.

We use the method of 'ad valorem' (rate per dollar according to land value) and minimum rates to determine what rates are paid by each property owner.

The rate per dollar calculation uses the land's valuation. If the valuation multiplied by the rate per dollar falls below the minimum rate, a minimum rate will be charged.

Because units, flats and apartments own just a small portion of a lot of land, the calculated rate is usually below the minimum. Therefore they pay the minimum.

Minimums are used to reduce the gap between what houses and apartments pay in rates.

The value of your land is determined by the NSW Valuer General. We receive the updated land values from the NSW Valuer General at least every three years. The last revaluation came into effect on 1 July 2020. Any significant fluctuation in your land valuations may have an impact on the amount of rates you pay.

You can find further information about the NSW Valuer General valuation process on their website.

Botany ratepayers currently have a lower minimum rate compared to Rockdale minimum ratepayers.

In 2020/21, ratepayers in the former Botany Council area paid a minimum rate of $552.62. Ratepayers in the former Rockdale Council area paid a minimum rate of $768.52.

To provide greater fairness and consistency we are gradually moving towards a consistent minimum rate, which will see harmonisation by 2024/25.

This would mean that everyone in Bayside who pays the minimum rate will have their rates calculated the same way.

These are a specific type of rate, where a minimum amount is levied on each parcel of land, regardless of land value.

This mostly applies to apartments, as these dwelling share the land value and therefore would pay a substantially lower rate to that of houses. Therefore Councils set minimum rate to reduce the gap between what houses and apartments pay in their Local Government Areas.

Councils must apply to IPART for increases to the minimum rate.

Yes, residents who hold a pensioner concession card are entitled to apply for a rate reduction and will receive the Mandatory Government Rebate of $250.

Find out more about Pensioner Rebates.