Understanding Your Rates

Rates and what they are used for

Rates make up approximately 29 percent of Council’s current income. Rates are levied based on the Local Government Act 1993. Around 24 percent of our income comes from fees and charges (eg water usage, waste management, venue hire fees, inspection fees, development application fees etc).  Grant funding makes up almost 19 percent of Council income, however, is variable and is usually project specific. This funding is often linked to projects eg upgrading a road or to help Council build a new facility like the Cabonne Community Centre.

We also receive funding from other sources like fines, developer contributions and interest. 

financial sustainabiltiy

What does council spend rates and charges on? 

The collection of rates and charges allows Council to contribute funds to critical infrastructure and services for our community for things like: 

  • Transport and active transport network which includes 923km of sealed roads and 961km of unsealed roads, and  almost 37km of cycleway and footpaths
  • Sporting and recreating facilities including 29 hectares of open public space and 7 pools
  • Tourism and community facilities: including libraries and community halls
  • Planning, building, animal control and public order and safety
  • Water facilities and sewer treatment infrastructure 
  • Stormwater network 
  • Environmental services: including household waste collection services, biosecurity and cemeteries

Each year, Council adopts a Revenue Policy Statement setting out our income and expenditure for the coming financial year, including information on rates, fees and charges.  The Revenue Policy is adopted as part of our suite of Integrated Planning & Reporting documents which can be viewed here.

 

Understanding your rates notice

Your rates notice sets out your rates and charges for your property.

Assessment No: the unique reference number that identifies the property

Property location and description:  the address for which rates and charges are levied 

Property rating category: the rating category your property is in (as defined by the Local Government Act 1993) eg residential, business, farmland and mining

Valuer General’s Land Value: The unimproved land value (in dollars ($) for your property as set by the Valuer General). 

Particulars of rates & charges: 

Residential - Town/Village (or the rating category your property is in): these are the rates levied on your land.  The funds raised from these rates are directed into Council’s General Fund.  This is income Council can use for a range of services, projects, facilities and activities.  It is what is described as Unrestricted funds. 

Domestic Waste Management:  Type of waste service provided at the property eg in this instance for kerbside bin collection as it is a residential property in town. The funds raised from this charge is directed into Council’s Waste Fund. This is income Council can use for Waste related activities and projects.  It is what is described as Restricted funds, that is, it is collected and must be used only for those purposes. 

Stormwater charge residential:  This statutory levy is collected to invest in improving the stormwater systems in our urban areas. The funds raised are directed into Council's Stormwater Levy Reserve. It is what is described as Restricted funds, that is, it is collected and must be used for these purposes only. 

Instalment Dates & Total Due:  Sets out the due dates for rates instalments across the financial year and the amount owing for each instalment period, if the account is paid quarterly. Alternatively, the amount can be paid in full by the first instalment due date. 

Interest rate: Any amounts owing after the due date are deemed overdue and will accrue interest at the rate specified on the rates notice. As per Section 566 (3) of the Local Government Act, Council adopts the interest rate specified by the Office of Local Government for the financial year. 

Understanding your rates notice

 

 

Water and Sewer Notices

The Cabonne LGA water and sewer network is also shared with Central Tablelands Water (CTW). 

Water availability charge: For the provision of water services to the property for the billing period. The funds raised from these water charges are directed into Council’s Water Fund. This is income Council can use for Water related activities and projects. It is what is described as Restricted funds, that is, it is collected and must be used for these purposes only. 

Water Consumption charge:  For the actual amount of water used by the property. The funds raised from these water charges are directed into Council’s Water Fund. This is income Council can use for Water related activities and projects. It is what is described as Restricted funds, that is, it is collected and must be used for these purposes only.  

 

How do we calculate rates?

Council’s Revenue Policy details the rating structure adopted by Council. It sets out which rates and charges you will have to pay and how they are calculated. 

Councils can choose how they calculate and distribute rates among categories of rateable properties in the council area. For each category or sub-category, rates can be calculated in one of three ways. They can be based:

  • entirely on the land value of the property
  • on a combination of the land value of the property and a fixed amount per property
  • entirely on the land value, but subject to a minimum amount - Cabonne Council uses this option

The land value is determined by the Land and Property Information Division of the Department of Finance and Services on behalf of the NSW Valuer General. 

Rates are calculated on land values supplied by the Valuer General of NSW. These land values are used to calculate the annual rates for each property. New valuations are issued by the Valuer General of NSW every three years which Council uses for the following financial year. 

Valuer General Newsletter

The total amount of income that Council can raise from the ordinary rate is limited by an annual rate peg percentage set by the Independent Pricing and Regulatory Tribunal (IPART).

 

 

When do I pay my rates?

Due Dates for Rate Instalments 

Under the NSW Local Government Act (1993) payment of rates must be paid in full or by quarterly instalments. Rates are calculated from 1 July to 30 June each year and broken down into four instalments: 

  • 1st instalment or pay in full - 31 August 
  • 2nd instalment - 30 November 
  • 3rd instalment - 28 February 
  • 4th instalment - 31 May 

You’ll receive your rate notice approximately four weeks before the due date. Interest is charged on any overdue amount. 

 

Financial hardship, rebates and exemptions

Arrangements to Pay 

At times ratepayers may face financial difficulties in making rate payments by the due dates.  Ratepayers who are experiencing financial difficulties or are unable to pay their rate instalment in full should contact the Rates Section on 6392 3200, to discuss alternate payment arrangements. 

If you are experiencing significant financial hardship due to a natural disaster, property holders may wish to complete a Financial Hardship Application form (this can be found at the bottom of the Hardship Rate Relief Policy). Or you can contact the Rates Section on 6392 3200 to discuss your situation. 

Exemption from Rates 

As per the Local Government Act (1993), a property such as a church, school, charitable institution, hospital or the like, may be eligible for a rate exemption. For further details please contact the Rates Section on 6392 3200.

Pension Rebates 

If you have a current Concession Card or Department of Veteran Affairs Gold Card, you may be eligible for a statutory rebate. Call us on 6392 3200 or visit us with your card for more information. 

Council’s policy provides for a 50% rebate of rates and domestic waste charges to a maximum of $250 and up to $87.50 on water and $87.50 on sewerage charges annually.

 

Water Meter Reads and Section 603

Water Meter Reading 

Council carries out meter readings quarterly to calculate water charges if applicable. The resulting water charges are shown on the next water billing notice. Special Meter readings can also be arranged for property sales to show the amount of water used on a pro-rata basis.  Residents are responsible for the payment of water charges levied by Council.  

Section 603 Certificates 

Section 603 Certificates provide confirmation of property and ownership details, including all outstanding rates and charges. If you are thinking about purchasing a property it is advisable to obtain a Section 603 Certificate.  Use the link below to apply and pay online. 

Property Enquiries

 

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