Revenue and Rating Plan 2021 - 2025

• To maintain rate increases in alignment with State Government rate cap, unless significant circumstances warrant a request for a variation to the rate cap.

• Continue to align commercial, industrial and petroleum rate differentials over the medium term under the horizontal equity principle.

• Reduce the commercial, industrial and petroleum differentials relative to the residential differentials over the medium and long term as opportunities arise in the setting of the annual rate cap and valuation changes allow. The target state to be set in the range between 1.5 and 1.8 times the residential differential by 2031-32.

• Residential rates will, depending on the movement in valuations, need to increase at amounts higher than the rate cap over the medium and long term in order to reduce the relativity of the commercial and industrial rating differentials.

• The current Farm rebate is transitioned out over the medium term to allow all differential rates to be managed solely within the 4 times rule.

• The Farm rate differential to be set at 75% of the residential rates over the medium to long term.

• All rating differentials including vacant land, mixed use and other land use types will continue to be reviewed on an annual basis

• Compliance with the rate cap with no requests for a variation.

• Commercial, industrial and petroleum rate in the dollar were aligned in 2022-23.

• Industrial and petroleum differentials were consolidated with the commercial differential from 2023-24. Relativity for 2024-25 set at 194.7% with target of 180% for 2025-26 (to be confirmed).

• Residential rates have increased over the four years from average $1,334.95 to $1,544.78.

• Commercial/industrial rates have decreased from average $5,479.83 to $4,657.60.

• The Farm rebate was removed from 2024-25. The farm differential is set at 50.2% relativity to the residential differential.

• The 3 ‘Point’ differentials (The Point – Residential, The Point – Commercial, The Point – Vacant) were discontinued from 2023-24 as higher rates would not be introduced.

Your feedback is a vital part of our planning, and helps us make decisions to ensure the Revenue & Rating Plan 2025-26 to 2028-29 reflects community needs and aligns with the objectives and actions of our Council Plan 2025-2029.

We would love you to provide your feedback via the online survey below.

This is a multiple part response:

Point 1

Not all charges on your rate notice are included in the rate cap.

What is included in the rate cap?

Rates (different rates are charged to different types of properties, for example residential land or commercial land – this is known as the differential)

Municipal charge (not applicable to City of Greater Geelong)

What is not included in the rate cap?

Waste charges (including additional bins)

State government fire services levy (rates set by the state government)

Point 2

The valuation of your property is based on the capital improved value (CIV).

The rate cap is based on the total valuation of all 145,000+ properties regardless of the differential.

If the value of your property moves either up or down compared to the average, this will change the amount your rates will vary.

Point 3

The changes to the rate in the dollar applied to the differential.

The rate cap is based on the total amount of revenue generated, not by individual properties.

The current strategy is to align residential and commercial/industrial differentials more closely. This means, the residential differential will increase, moving residential rates up and the commercial/industrial differential will decrease meaning commercial/industrial properties will pay less.

Working examples for 2024-25

The average residential value changed by (-3.0%), commercial/industrial values changed by 2.8%.

The residential rate in the dollar increased by 7.7% while the commercial/industrial rate in the dollar decreased by (-7.6%).

This example shows a property increasing from $800,000 to $900,000 for both a residential and commercial/industrial property.

The increase for the residential property was 18.1% and not the rate cap of 2.75%.

The increase for the commercial/industrial property (with the same valuation change) was 7.2% and not the rate cap of 2.75%.

This also shows the difference in rates payable for residential properties compared to commercial/industrial properties for the same valuation.

No. The rate in the dollar is adjusted. Generally, if values go up, the rate in the dollar goes down so if the values go down, the rate in the dollar goes up. This way the base stays the same. The rate cap is then added to the base.

Working example for 2024-25

The valuation increased by 50% so the rate in the dollar was reduced so the same revenue was generated. The rate cap is then added.

The City is provided with valuations on an annual basis from the Valuer-General Victoria (VGV). Valuations are determined independently of the City.

The VGV appoints independent professional valuers to undertake an annual revaluation of properties. Properties are valued according to the VGV’s best practice guidelines.

The program includes:

• a five yearly rolling inspection of all assessments within the municipality (externally)
• all sales/leases are inspected, and property data updated (where applicable)
• all supplementary valuations
• anomalies detected in tracking graph
• anomalies found after the initial running of the valuation model completed as part of Stage 2
• objections to or enquiries on the general valuation
• an external inspection of each High-Risk Property (HRP) property is required, e.g. major shopping centres
• rental and other relevant commercial evidence is collected
• the valuation models are run, and statistics and spatial maps are produced to test validity of the valuation and identify anomalies.

The objection process allows ratepayers to have the valuation reviewed if they do not agree with the certified valuation provided to the City.

Rates are a property tax to help fund local infrastructure and services and subsequently a ratepayer will not receive services to the extent of tax (rates) paid. Benefits are consumed in different quantities and types over the lifecycle of the ratepayer (e.g. maternal and child health, libraries and aged care, roads and footpaths, local laws).