Section 497 of the Local Government Act 1993 provides the three possible methods to determine the structure of the rate. Council has considered the methods and has decided on the structure of the rates being an ad valorem rate subject to a minimum for all properties categorised, Residential, Business or Farming, this is known as the Ordinary Rate or General rate. All land is subject to an Ordinary Rate (except for some exemptions allowed under the Act). The type of Ordinary Rate depends on the property category, which is shown on your rate notice.
In broad terms properties are categorised for rating according to their use or when there is no use, then according to zoning. If a property is not residential, farmland or mining it will be categorised as business. Categories do not change zoning of permitted use or create subdivision entitlements.
Section 493 of the Local Government Act states that there are four categories of ordinary rates: Residential, Farming, Mining and Business. Council has to determine the “Rating Category” for each rateable parcel of land according to its dominant use. In accordance with the provisions of the Local Government Act 1993 (Section 514 to Section 531), Council has declared each parcel of rateable land within the Council area to be within one of the following categories; Residential, Business, Farmland or Mining.
At any time, a ratepayer may apply to Council to have a land category and sub-category reviewed. Contact Tweed Shire Council to obtain a Re-categorisation Form.
Change of Category
The ratepayer must notify Council within 30 days when a land category changes from one category to another.
Appeal Against Declaration of Category
If you are dissatisfied with Council's declaration of the category of your land after it has been reviewed, or the date of the category of your land is to take effect, you may appeal to the Land and Environment Court within 30 days after the declaration is made, under Section 526 of the Local Government Act 1993.
Mixed Development Rating
In general, Mixed Development Rating allows for a property to receive a combination of Residential and Business rating categories (providing a form of rating relief - in most cases) due to the property having dual usage.
The Local Government Act 1993 provides for Mixed Development Rating. A parcel of land occupied, or used solely as one building comprising a residence and a business, may be considered for Mixed Development Rating if it can be separately occupied for both business and residential purposes. The residential category and business category could be rated according to the proportion that each usage has to the whole of the property.
The Valuer General's Department supplies Council with a Mixed Development Apportionment Factor (MDAF) for land subject to Mixed Development Rating. The MDAF is determined by calculating the proportion that the value of the business part bears to the value of the land as a whole. The result is expressed as a percentage. Rates and charges are apportioned according to the MDAF. If, for example, a parcel of mixed development land has an MDAF of 60%, rates and charges would be apportioned as Business 60% and Residential 40%.
Any additional information regarding Mixed Development Rating can be obtained by contacting Council's Revenue and Recovery unit on (02) 66702400 or 1300 292 872.
How are general rates calculated?
The Local Government Act prescribes land categories as residential, farmland, business and mining (there is no mining category for Tweed). Rates and charges are raised under the Local Government Act 1993 NSW. The ordinary rate is used to provide the many general community services and facilities including local roads, libraries, sporting facilities, parks and gardens etc while the funds raised by water, sewer and waste charges are spent on providing and maintaining those specific services.
Rates are then levied in accordance with NSW legislation and calculated by using:
- The unimproved land value (land only) which is determined by the NSW Land and Property Information.
- The rate in the dollar or minimum rate adopted each year by Council that is specific to your rating category.
Rate in the dollar
General Rates are determined by multiplying the unimproved land value (LV) by the rate in the dollar (RD) for the category, the rate in the dollar is set by Council each financial year.
For 2016/2017 these have been set at:
- Residential 0.5607 cents per $ of land value
- Business 0.5959 cents per $ of land value
- Farmland 0.3625 cents per $ of land value
Your property is categorised for rating purposes according to its dominant use and is shown on your Rates Notice. The basis of categorisation, is in broad terms, according to use or where there is no use, then according to zoning in accordance with the Tweed Local Environmental Plan (LEP). Categories do not change zonings or permit subdivision entitlements.
If you do not agree with the rating category, or if you change the use of your property, please notify Council in writing within thirty (30) days.
Each year Council sets a Minimum Rate amount that will be levied for General Rates. This is the amount deemed to be a fair and reasonable contribution for residents to pay towards the services of Council.
For the 2016/2017 financial year these have been set at:
- Residential $1007.80
- Business $1107.90
- Farmland $1007.8
Your general rates contribution is calculated by multiplying the set rate in the dollar by your unimproved land value. You are then charged this figure or the minimum figure, whichever is the greater amount.
Rates Calculation Example 2016/2017 - example only
General Rates residential with land value $150,000.
Rate in the dollar calculation (LV X RD) $150,000 x 0.005607 = $841.05
Minimum Rate for residential = $1007.80
Minimum Rate applies = $1007.80
General Rates residential with land value $250,000.
Rate in the dollar calculation (LV X RD) $250,000 x 0.005607 = $1401.75
Minimum Rate for residential = $1007.80
Rate in the dollar calculation applies = $1401.75
As per Section 585 of the Local Government Act 1993 the owner of rateable land described in any of the following paragraphs may apply to Council for a postponement of rates payable for the land in the current or following rating year (or in both years):
- a parcel of land on which there is a single dwelling house used or occupied as such and which is zoned or otherwise designated for use under an environmental planning instrument for the purposes of industry, commerce or the erection of residential flat buildings, not being land referred to in paragraph (b) or (c);
- a parcel of land (which may comprise one or more lots or portions in a current plan) on which there is a single dwelling house used or occupied as such and which is zoned or otherwise designated under an environmental planning instrument so as to permit its subdivision for residential purposes, not being land referred to in paragraph (c);
- a parcel of rural land (which may comprise one or more lots or portions in a current plan) which is zoned or otherwise designated under an environmental planning instrument so as to permit its use otherwise than as rural land, or its subdivision into two or more lots or portions, one or more of which has an area of less than 40 hectares.
The rates postponed relate to that portion of the value that the Valuer General determines is related to the parcel’s zoned or permitted use, this is the attributable value. Once the use of the land changes, for example, the house is demolished or the land is subdivided, the postponed rates and interest for up to five years, but no more than five years, becomes immediately payable.
The postponed rates that have been calculated on the attributable value will continually attract interest for up to five years. After five years the rate and the interest will no longer be payable (a maximum of five years postponed rates will ever become payable).
If you wish to discuss whether you are eligible to receive the benefit of postponed rates, or would like an application form to be sent to you, please phone Council on (02) 6670 2400 or 1300 292 872.