Rates facts, myths and FAQs

Rates facts

Important information about rates and charges for 2023-24

Allowable rate increase:

  • Kiama Council proposes to increase its total rate income for the financial year 2023-24 by 4.2%
  • The Independent Pricing and Regulatory Tribunal (IPART) set the allowable rate increase (rate peg) for all NSW Councils
  • For 2023-24, our IPART rate peg was set at 5.1%, but the figure has been adjusted due to the Additional Special Variation granted for 2022-23.

Revaluation – property land values:

  • The general revaluation of land within Kiama Council’s area has been completed by The Valuer General
  • You will have received your Notice of Valuation from the Valuer General
  • The new land values will be used to calculate your 2023-24 rates
  • Council’s total rate income increase for 2023-24 is pegged at 4.2% and Council must remain within this limit when applying the new land values to calculate your rates
  • Individual rates will vary depending on the change in land value in relation to the average change in land value within a rate category. Therefore, some rates will increase, decrease or stay about the same
  • Information pertaining to the new land values can be found on the Valuer General’s website.

Our proposed rate levy for 2023-24

Rate Category

(as shown on your rate notice)

Rate in the $

Base Amount

$

Proposed Rate Income

$

Residential

0.0007743

896.80

17,881,365

Residential Rural

0.00087470

896.80

492,617

Farmland

0.00064050

896.80

764,346

Business

0.00186252

 

42.166

Business commercial/ Industrial

0.00351

 

A minimum rate of 896.80 applies.

1,571,721

Note: The figures shown may change slightly as Council adds more rateable properties to its rate base up to 30 June, 2023.

How are Residential, Rural Residential and Farmland rates calculated?

The total rate bill is calculated by Land Value x Rate in $ = Amount + Base Amount = Total Rate Bill

Residential (example):

Land Value

Rate in $

Amount

Base Amount

Total

850,000

0.0007743

658.16

896.80

1,554.96

 

Rural Residential (example):

Land Value

Rate in $

Amount

Base Amount

Total

850,000

0.00087470

743.50

896.80

1,640.30

 

Farmland (example):

Land Value

Rate in $

Amount

Base Amount

Total

850,000

0.00064050

544.43

896.80

1,441.23

What is a base amount?

  • A base amount is a fixed amount that is applicable to every property in the rate category
  • Base amounts help smooth out large increases in Land Values by reducing the amount of rate income calculated solely on property land values.

 

Residential rates

  • Council gets 50% of its overall residential rates income from the Base Amount and 50% from the Residential (rate-in-the-dollar) amount.
  • Your residential rates notice also contains taxes for:
    • Domestic waste – this is to pay for your bin service. Please check/confirm you are being charged for the right size bin and the correct number of bins (note ‘1’ in the Rateable Value or Number column indicates one service, which includes a red, yellow and green bin. If you have more than one red bin, this number will reflect that.)
    • Residential Stormwater – this is a fixed $25 charge to all residential ratepayers and $12.50 to residential strata units, helping us to fund our municipality’s extensive stormwater management network.

Hardship

Council recognises that due to exceptional circumstances, ratepayers may at times encounter difficulty paying their annual rates and charges. Council has a Debt Recovery and Hardship Assistance Policy(PDF, 555KB) that provides a framework for providing relief to any ratepayers who are suffering genuine financial hardship. 

Apply for hardship relief.

Rates Myths

Myth 1 - Kiama Council’s rates are the highest in the state

Not true.

Compared to other local Councils, Kiama’s average residential rates are in the same band as Shellharbour, Wingecarribee, Wollongong and Newcastle https://www.yourcouncil.nsw.gov.au/compare-councils/.

Myth 2 - An increase in land values means my rates will increase

Not necessarily true.

After a revaluation, such as the recent one by the NSW Value General dated 1 July 2022, the distribution (or spread) of rates changes for each ratepayer. Because of this redistribution, your rates may increase, decrease or stay the same. 

Myth 3 - The increase in land value means Kiama Council gets more money

Not true.

Council does not receive any more money due to land values going up, we can only increase our rates by the amount of the rate peg set by NSW Government’s IPART.

Myth 4 - Land values have risen so rates will increase in the same way

Not true.

Only your residential (rate-in-the-dollar) amount is affected by the recent valuation. The base amount is the same for every residential ratepayer across our municipality. And Council can only increase rates according to IPART's instruction.

Myth 5 - We pay so much in rates, Council must be making a huge profit

Not true.

Kiama Council’s rates income for 2023-24 equates to $20.75 million.

Our operating expenses for 2022-23 are budgeted to be $90.45 million and income is budgeted to be $105.88 million.

As at 31 March 2023 our reserves are:

  • Externally restricted (can only be spent on the purpose the funds have been provided for) $57,333,608
  • Internally restricted (set aside by Council to cover future expenses) $19,892,859.

Myth 6 - The sale of Akuna Street and other assets going forward (eg: Blue Haven Bonaira) will mean Council has money to spare

Not true.

Council, like any business has to balance its income with its expenses.

Capital works expenditure is as follows:

  • $17.37 million is budgeted to be spent in 2022-23
  • $17.69 million is budgeted to be spent in 2023-24.

Myth 7 - The shortfall can be made up by applying for grants

Not true.

Grants take a lot of resources to apply for, work through and ensure the milestone reports and acquittals are all done correctly. Many grants require in-kind support or matched funding and still use Council resources (project managers, communications support, labour). Although we are genuinely grateful for all our grants and have achieved wonderful outcomes via grant-funded projects, they are not a panacea for our financial and resourcing challenges.  

 

 

Rates FAQs

How much income will Kiama Council get from rates in FY23-24?

$20,752,217.

What's the breakdown of residential, farmland and business ratepayers in Kiama Municipality?

Residential $18,373982

Farmland $764,347

Business $1,613,888

What is the rates income spent on?

Rates are used to provide essential infrastructure and services to residents and ratepayers of our municipality such as parks & gardens, sports fields, roads, bridges, footpaths, swimming pools, beach safety and libraries.

Can I dispute my latest land valuation (dated 1 July 2022) that was issued by the NSW Valuer General?

You’ll need to get in touch with the Valuer General. You can find contact information on your letter or visit:

https://www.valuergeneral.nsw.gov.au/

 

What if I can’t afford the rate rise?

If you’re experiencing financial hardship and struggling to pay your rates, please get in touch with Kiama Council prior to when your rates fall due. There are a range of options in place to assist you. 

Find out more

I’m a pensioner, can I get a discount?

Find out if you may be eligible for a pensioner rebate on your rates here https://www.kiama.nsw.gov.au/Council/Your-rates/Apply-for-a-pensioner-rebate

 

How do I pay my rates?

You can pay your rates online, via phone, in person, via mail, set up a direct debit or use BPay.

https://www.kiama.nsw.gov.au/Council/Your-rates/Pay-your-rates

Can I get my rates notice via email?

Absolutely, click this link to find out more. 

https://www.kiama.nsw.gov.au/Council/Your-rates/Rates-notice-via-email

 

 

 

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