Q1: Why is Council reviewing properties in the farmland rating category?
Council is reviewing its current rating structure to ensure that the rating system is fair and equitable across all Cabonne rate payers. The review process is simply intended to confirm that landholders are being charged the correct rates for their property, in line with the categorisation set out in the legislation.
Councils are required to ensure all farmland properties meet the legal requirements under the Local Government Act 1993 (NSW), and the Local Government (General) Regulations and Office of Local Government Rating and Revenue Raising Manual.
Q2. Do all councils have a farmland rating categories and an application process?
Yes, it is common practice for councils that have significant farming activity within their Local Government Area to implement farmland rating categories and an application and review process. This process is to:
- Ensure equity as farmland rates are often lower than residential or business rates because agricultural land typically generates less demand for council services.
- Maintain compliance to the Act as councils need to verify that properties classified as farmland meet the criteria (e.g., primary production activities, income thresholds).
- Support farmland sustainability as fair rating helps keep farming viable and encourages landowners to maintain agricultural use rather than converting to other purposes.
Q3: What determines for land to qualify as farmland and what is the farmland rating category?
Farmland category falls under Section 515 of Local Government Act. It is determined as being:
- a parcel of rateable land, valued as one assessment and its dominant use is for farming, (that is, the business or industry of grazing, animal feedlots, dairying, pig-farming, poultry farming, viticulture, orcharding, bee-keeping, horticulture, growing of crops, forestry or aquaculture within the meaning of the Fisheries Management Act 1994)
- has a significant and substantial commercial purpose or character and;
- is engaged in for the purposes of profit on a continuous or repetitive basis (whether or not a profit is actually made).
Q4: Do rural residential properties qualify?
No. Properties mainly used for rural residential living do not qualify for the farmland category.
Q5: What is the difference between the rating category and zoning?
Rating Categories
The four main rating categories for land in NSW are outlined in Section 493 of the Local Government Act 1993: farmland, residential, mining, and business. A council determines the specific categories and subcategories for its area under the Act (Sections 493-560) and uses this structure to make and levy ordinary rates, which must be done annually. The rating category does not prescribe how the land is used; this is determined under zoning.
Zoning
Land zoning in NSW regulates land use and development, determining what can be built and how land can be utilised based on local environmental plans (LEPs). Zoning classifications dictate how land can be used, such as residential, commercial industrial or recreational, as governed by The Environmental Planning and Assessment Act 1979 (EP&A Act).
Q6: What is changing? Council is reviewing its Farmland Application process, which is required under the legislation. Property owners must complete an application every four years to confirm eligibility. This is a requirement to ensure the farmland category is reserved for genuine primary producers and maintain fairness in the rating system.
Q7: When will this happen? The process will roll out gradually across the Cabonne Local Government Area over the next month with media communication in early November 2025, social media posts and a full mailout to all affected ratepayers commenced the week 10th November 2025. Council’s website also contains a section on the farmland rating application form and relevant information.
Q8. What happens if an owner doesn’t apply or doesn’t meet the criteria? The property will be reclassified for future rating years. Owners will receive written notification of the new category as per the Act.
Q9: What documents do owners need to provide?
Supporting documents may include:
- Local Land Services Annual Return of Rates Notice
- Business registration or industry licences
- A map showing farm infrastructure and land use
To assist Council in determining eligibility, applicants are advised that all parts of the application form must be completed in full. Incomplete application forms will be returned to the applicant.
Q10: Will Council inspect properties?
Yes, in some cases a site inspection may be required if there is a discrepancy in information provided or to verify that the property is being used for farmland/primary production purposes. The site inspection supports the application by helping the council determine eligibility for farmland rates.
Q11: Where can landowners find a copy of the Farmland Application Form?
The form can be accessed in 3 different ways:
1.By using the QR Code on Council’s website or Facebook page with a link to the application form.
2.By searching “Farmland Application Form” on Council’s website.
3.By requesting a printed copy of the application form from Council’s Administration Centre or downloading a copy from Council’s website.
Q12: Will Council make more money because of this review? No. Council’s rating income remains dependent on the annual rate peg figure issued by IPART. Councils can only increase their total income by this assigned percentage each financial year. This rating review will only redistribute the spread of the income across the rating categories.
Council rates are determined using a property’s unimproved land value, as assessed by the NSW Valuer General. Council uses the combination of the unimproved land values and the rate peg to establish an appropriate charge for each category to collect the allowed rating income for the year. This rating review aims to improve the fairness and equitability across all rating categories, and it may actually see annual rates decrease in some categories.
Q13. How long will it take to complete?
The average time taken to complete the form is 30 minutes.
PRIVACY INFORMATION
The completed Farmland Rating Category Application form contains personal information which is being collected for the purpose of enabling Council to determine eligibility for farmland rating and to enable Council to perform any other duty or task under any relevant legislation. The information will be processed by Council officers and may be available to the public, subject to requests meeting Privacy legislation requirements. The information will be stored in Councils electronic document management system.