Rates

Contributed by Ann-Margaret Walsh and Piercy Porter and current to 1 September 2005

HOW RATES ARE ASSESSED

In accordance with the provisions of the Valuation of Land Act 1978 (WA), rates are assessed based on the valuation of property. Valuations are assessed on the basis of a property’s gross rental value or unimproved value.

DEFINITIONS

Gross rental value of land means the gross annual rental that the land might reasonably be expected to realise if let on a tenancy from year to year upon condition that the landlord were liable for all rates, taxes and other charges including the insurance and other outgoings necessary to maintain the value of the land, provided that:

• where the gross rental value of land cannot reasonably be determined on such basis, the gross rental value shall be the assessed value;
• the gross value of any land not used exclusively for residential purposes only shall, where the value of the improvements on the land is less than one third of what would have been the value of the land if it were vacant land, be not less than what would be the assessed value of the land if it were vacant land;
• the gross rental value of any land separately valued shall, in any event, be not less than $20; and
• calculation of the gross rental value of any land shall include any payment normally or usually made for or in relation to a tenancy of the kind in question but shall not include any allowance, by discounting or otherwise, for advance payment or late payment of rent that may apply.

Unimproved value means, in relation to any land situated within a town site (limited exceptions apply), the site value.

Site value of land means the capital amount that an estate might reasonably be expected to realise on sale assuming that any improvements to the land, other than merged improvements, had not been made. Merged improvements are works in the nature of draining, excavation etc, retaining walls, the removal of rocks, stone or soil, and the clearing of timber, scrub or other vegetation.

The Valuer-General administers the Valuation of Land Act and determines the frequency of a general valuation. He or she is required to provide valuations which shall at all times be accurate and up to date.

When the Valuer-General has completed a general valuation of land within a valuation district under this Act, a notice of the general valuation is published in the Government Gazette and in one issue of each of two newspapers having a general circulation within the valuation district.

OBJECTIONS AND APPEALS

Any person liable to pay any rate or tax assessed in respect of land who is dissatisfied with a valuation may serve upon the Valuer-General a written objection to the valuation on the specified form. In the case of the land the subject of a general valuation, such objection must be made within 60 days after gazettal of the valuation; where the valuation is the basis of an assessment of a rating or taxing authority it must be made within 60 days of the issue of such assessment.

Any person dissatisfied with the decision of the Valuer-General on an objection, may within 60 days after receipt of that advice, serve a notice requiring the Valuer to treat the objection as an appeal. This appeal is then heard by the State Administrative Tribunal.

AMOUNT OF RATES

The elected members of each local Council approve a municipal budget and determine what amount is required from rates. To arrive at a rate in the dollar the total valuations are divided into the sum which is to be derived from rates. The amount of rates which property owners are liable for is then calculated by multiplying the valuation by the rate in the dollar.

PENSIONER INFORMATION

Pensioners may be able to obtain a rebate of up to 50% on municipal rates or, in certain circumstances, deferment of payment of rates. To claim deferment of rates or the State Government Subsidy, pension card holders should register with their local Council as eligible pensioners within 35 days of the date of issue of the rates notice.