What are Rates?

    Rates are a tax levied on all rateable properties within the boundaries of the City of Kwinana

    in accordance with the Local Government Act 1995.

    Why do we have to pay rates?

    The overall objective of the proposed rates in the 2023/2024 Budget is to provide for the net funding requirements of the City’s services, activities, financing costs and the current and future capital requirements of the City, after taking into account all other forms of revenue. The formulation of a rating system is about achieving a means by which Council can raise sufficient revenue to pay for the services it provides.

    How are rates calculated?

    Local Governments calculates the rates to be paid on your individual property by using the following formula: property valuation x rate in the dollar (RiD) = rate payable. The property valuation is determined by the Landgate division of the State Government, by determining the values of the total properties in the City of Kwinana.

     

    The rate in the dollar is then calculated by the City, by working out how much it will cost to run services and provide support to the community and dividing that overall amount by the amount of ‘rateable properties’ in Kwinana.

    Why are my rates increasing?

    Rate increases are based on a number of complex and inter-related internal and external factors. The Council is subject to inflation and the same cost increases impacting the local community, including the Consumer Price Index (CPI) was saw a 7.8% increase for the December 2022 quarter. 

     

    The Council’s costs are also subject to the Local Government Cost Index (LGCI) for WA, which impacts on the cost of delivering services to the community, plus the capital work programmes. The LGCI reflects the costs for wages, construction, and other services and is a better reflection of the cost increases that local government face. LGCI is forecast at 4.5% for June 2023.

    What is Differential Rating?

    Throughout Western Australia, the basis of using property valuations has been found to be the most appropriate means of achieving rating equity; however, the achievement of a wholly equitable rating system for all properties, in all areas, is a difficult task if it is based on the property valuations alone. For this reason, there are refinement options made available, such as differential rating, that the City of Kwinana has elected to use. Differential rating allows a Council to impose differential general rates according to any or a combination of the following characteristics:

    1. the purpose for which the land is zoned, whether or not under a local
    2. planning scheme or improvement scheme in force under the Planning and
    3. Development Act 2005; or
    4. a purpose for which the land is held or used as determined by the local government; or
    5. whether or not the land is vacant land; or

    any other characteristic or combination of characteristics prescribed.

    What is ‘rates harmonisation?

    Rates harmonisation is the process of streamlining and simplifying rate categories in line with the Council adopted Objects and Reasons. Rates harmonisation reduces the number of rating categories while ensuring that all rateable properties are being rated fairly and equitably giving due regard to the key rating values of objectivity, fairness and equity, consistency and transparency and administrative efficiency.

    Why are we going through a harmonisation process?

    The City is in the final year of its rates harmonisation process which began in 2018 in an effort to streamline and reduced the City’s rate categories, while ensuring that all rateable properties are being rated fairly and equitably. The City has undertaken the harmonisation process gradually to ensure that any properties impacted financially will transition over time and not receive a significant financial burden in any one year.

    What will be the new rating category as part of the rates harmonisation, for my property?

    This year the Improved Residential and Improved Special Residential categories will be harmonised into Improved Residential and the Vacant Residential and Vacant Non-Residential categories will be harmonised into Vacant.

    2022/2023 Categories

    2023/2024 Categories

    Improved Residential

    Improved Residential

    Improved Special Residential

    Vacant Residential

    Vacant

    Vacant Non-Residential

    Improved Commercial and Industrial

    Improved Commercial and Industrial

    General Industry

    General Industry

    Rural

    Rural

    Mining and Industrial

    Mining and Industrial

    Does the proposed harmonisation of rate categories change or affect my land zoning?

    No. The rating category applied to your property does not affect the use and zoning of your property as this use and zoning is set out in the local planning scheme applicable to your property.

    I’m having some issues paying my rates, what can the City do to support me?

    The City provides a number of rate payment options from online payments, to direct debit or instalment plans. We also have a hardship policy to support those in our community who may be going through a tough time. The City is committed to working with its ratepayers to find a solution that meets their needs. Any ratepayer in need of assistance is encouraged to contact our friendly rates team on 9439 0200 or email rates@kwinana.wa.gov.au.