Rates

• Rates Revenue and Calculation
• Fire and Emergency Services Levy
• Land Valuations
• Objections
• Payments
• Certificate of Rates, Land Tax and Other Charges
  

---

Rates Revenue and Calculation

General information is available in the Rates Pamphlet 2008-09  (56Kb).

Rates Revenue

ACT property owners pay rates to provide funding for a wide range of municipal and other essential services to the ACT community. Under the Rates Act 2004  "owner" includes the registered proprietor of a parcel of land, a mortgagee in possession or a person holding the parcel of land under a sublease from the Territory.

In the ACT, the municipal services provided include:

• additions to and maintenance of main roads, bicycle paths and footpaths;
• the establishment, maintenance and upkeep of recreational areas, swimming pools, public libraries, halls and community centres; and
• garbage and waste disposal services, stormwater drainage, street lighting and cleaning.

Rates Calculation for 2008-09

Calculation of rates for different types of properties is as follows:

Standard Properties: FC + ((AUV - $16 500) x P)

The amount of rates payable for 2008-09 has two components - a fixed charge (FC) and a valuation charge for each rateable property. Each property is liable for the fixed charge together with the valuation charge. The valuation charge is calculated using a rating factor or percentage (P) and the average of 2006, 2007 and 2008 unimproved land values of your property (AUV). There is no liability for the valuation charge on the first $16 500 of your AUV.

Unit Properties: FC + (((AUV x UE) - $16 500) x P)

Rates for units that are part of a registered Unit Title Plan are subject to a similar calculation that is applied to all other properties. Each unit is liable for the fixed charge (FC) together with the valuation charge. The valuation charge for each unit is calculated using the average of 2006, 2007 and 2008 unimproved land values (AUV) of the entire Unit Title Plan which is multiplied by the individual unit entitlement (UE). The rating factor or percentage (P) is then applied to the individual unit portion of the AUV that exceeds $16 500 (rate free threshold). There is no liability for the valuation charge if the individual unit portion of the AUV is $16 500 or less.

Fixed Charges (FC) and Rating Factors (P)

There are different fixed charges and rating factors for residential, commercial and rural properties. The fixed charges and rating factors for 2008-09 are as follows:

---

Fire and Emergency Services Levy

In addition to the rates assessment, a Fire and Emergency Services Levy is charged on all rateable properties in 2008-09 as follows:

Residential and Rural: Fixed Charge $91.20

Commercial: (AUV - $16,500) x 0.3859 %

---

Land Valuations

• Unimproved Value
• Who Assesses the Values?
• How Are Values Assessed?
• Why is Land Revalued?
• What if an Owner Disagrees With the New Value?

Unimproved Value

The unimproved value of land is defined in sections 6 and 7 of the Rates Act 2004 .

A Valuation Notice is sent to all property owners with the annual Rates Assessment Notice to inform the owner of the unimproved value of the land at the relevant date. Unit title developments are treated as a single property for valuation purposes and the Valuation Notice is sent to the Owners Corporation. Individual valuation notices are not sent to unit owners.

Who Assesses the Values?

Unimproved land values in the ACT are assessed independently by the qualified Contract Valuer engaged by the ACT Revenue Office, currently, the Australian Valuation Office.

The Contract Valuer recommends the unimproved values to the Commissioner for ACT Revenue who determines the new values in accordance with the Rates Act 2004 .

How are Values Assessed?

The unimproved land value of each block is assessed by examining the sales evidence of similar properties. Where possible, the sale price of unimproved land in the area is used as a comparison, with adjustments made for any individual difference such as size, location, aspect and view which may affect the value of each block of land.

Where there have been no sales of vacant land in the area, or in comparable areas, the valuer works from the sales of improved properties, and deducts amounts for improvements such as buildings, landscaping, paths, fences and the like, in order to deduce an unimproved land value of the sale blocks. These values are then used to assess the unimproved land value of other blocks.

Why is Land Revalued?

Land values rarely remain the same over time. Values within the same area and between areas may change, and these changes are indicated by the prices people are willing to pay when buying properties. To ensure that unimproved land values used for rates purposes are as current as possible, a general revaluation of all parcels of land is carried out annually.

What if an Owner Disagrees With the New Value?

If the owner considers that the newly determined unimproved land value of the property is incorrect, the owner may lodge an objection to the resultant rates assessment on the basis that they are dissatisfied with the unimproved value of the land. The Commissioner cannot accept objections lodged out of time where the objection is based on the unimproved value of the land. In the case of Unit Title developments, the Owners Corporation can lodge an objection to the assessment on behalf of individual unit owners as if the assessment was served on the Owners Corporation. Individual unit owners cannot object to their rates assessment on the basis of dissatisfaction with the new unimproved land value of the unit plan. Unit owners may, however, object to their assessment on grounds other than dissatisfaction with the unimproved value of the land.

---

Objections

• Objecting to an Assessment
• What Happens After Lodgment of Objections?

Objecting to an Assessment

Under the Taxation Administration Act 1999 , taxpayers have the right to object to an assessment, and this includes an assessment of Rates imposed under the Rates Act 2004 . If the basis for the objection is dissatisfaction with the newly determined unimproved land value, the objection can only be made to the Rates assessment. If your objection is successful and the unimproved land value is redetermined, your average unimproved value will be recalculated and any relevant assessment adjusted accordingly. 

Under division 10.1 of the Taxation Administration Act 1999 , a taxpayer who is dissatisfied with an assessment may, within 60 days after the service of the notice of assessment, lodge with the Commissioner a written objection to the assessment. Objections to rates assessments based on unimproved land value must be lodged within 60 days after the service of the valuation notice and cannot be accepted if lodged out of time. 

An objection may also be made to a decision under a tax law that is prescribed under the law for section 100 of the Taxation Administration Act 1999 . For the Rates Act 2004 , prescribed decisions are in section 70. 

An objection fee of a $64 applies, except where the objection is based on the unimproved land value, in which case the fee is $20, and this will be refunded if your objection is successful. To enable your objection to be considered as quickly as possible, it should state fully and in detail the grounds on which you rely, and must be accompanied by full payment of the required fee. If the objection is based on the newly determined unimproved value, you may provide an alternative value. 

The Commissioner can allow your objection or disallow it in whole or in part. You will be responsible for any expenses you incur in relation to your objection and are not able to recover them (other than the objection fee) even if your objection is successful. The Commissioner may supply to you documents which you request and which the Commissioner holds and considers relevant to your assessment. Alternatively, you may apply for access to any documents you consider relevant to the assessment under the ACT Freedom of Information Act 1989  (the Act). Information concerning types of documents accessible under the Act and procedures for making an application may be obtained from the FOI Coordinator, Department of Treasury, on (02) 6207 0280 or fax (02) 6207 0304.

Once the Commissioner has made a decision on your objection you have the right to have that decision reviewed by the ACT Administrative Appeals Tribunal should you be dissatisfied with it. Application should be made to the Tribunal within 28 days of receiving notice of the decision. A non-refundable lodgment fee of $247 applies. Further information is available in the Statement of Rights Objections Appeals leaflet. 

What Happens After Lodgment of Objections?

If an objection has been lodged, all charges as originally assessed, remain payable until a final decision is made. If an amount is paid and your objection is successful in whole or in part, you will receive an appropriate adjustment or refund (including interest on the overpayment). 

---

Payments

• Payment of Rates
• Staggered Billing
• Pensioner Assistance
• Deferment of Rates
• Where and How Can I Pay?
• What if I Can't Pay?
• What If I Don't Pay?
• Make an On-Line Payment  (This link will take you to the ACT Government On-Line payment site)

Payment of Rates

The calculation of the amount payable for rates and the Fire and Emergency Services Levy, together with the payment options, are detailed on your 2008-09 Rates Assessment Notice. You may elect to pay your rates in full by the first due date and receive a 3% discount (see Disallowable Instrument DI2004-59 ) or you can pay your rates by four instalments throughout the year. Details of payment methods and the various payment centres are listed on the back of your 2008-09 Rates Assessment Notice.

Staggered Billing

To ease pressure on payment centres and avoid the need for ratepayers to wait in queues for long periods to pay accounts, the ACT has been divided into three sectors for billing purposes. Assessments have different issue and due dates, depending on the suburb in which a property is located. The due dates for payment are specified on your assessment notice.

Pensioner Assistance

The following forms of assistance are available to eligible pensioners. Full details of the schemes can be obtained from the ACT Revenue Office.

Rebate

Property owners who receive a Centrelink or Department of Veterans' Affairs pension with entitlement to a Pensioner Concession Card, or a War Veteran's pension, may be eligible for a rebate of up to 50% of their rates.  This form of assistance is limited to a pensioner's principal place of residence and to a maximum concession of $431 per property for all new pensioners. Pensioners in receipt of a rates rebate prior to 1 July 1997 are not affected by the $431 cap and maintain their level of concession until such time that they cease to be an eligible pensioner. All eligible pensioners will receive a 50% rebate on their portion of the Fire and Emergency Services Levy.

If you become a pensioner during the year you should Contact Us as soon as possible to determine your eligibility for a rebate.  To apply for a rebate please use the Pensioner Rates Rebate Application  (23Kb).  Applications for a rebate of 2008-09 rates must be received by 30 June 2009.

If you are currently receiving a pensioner rebate of rates for a particular property and you cease to be an eligible pensioner or you no longer reside in that property, then you must Contact Us and advise of the changed circumstances so that your rebate can be adjusted accordingly.

Deferment

In addition to obtaining a rebate, eligible pensioners may defer all or part of the balance of their rates and the Fire and Emergency Services Levy after the rebate has been deducted. A relatively low rate of simple interest is charged on deferred amounts.  To apply for a deferral of charges please use the Rates Deferral (Pensioner) Application Form .

Hardship Assistance

Deferment

Property owners receiving unemployment or other benefits, or suffering substantial financial hardship, can apply to defer payment of their rates and the Fire and Emergency Services Levy for the home they live in. A relatively low rate of simple interest is charged on deferred amounts.  To apply for a deferral of charges please use the Rates Deferral (Hardship) Application .

What if I Can't Pay?

If you are experiencing difficulties in meeting your rates and the Fire and Emergency Services Levy payments, please Contact Us immediately to arrange alternative payment arrangements.

What If I Don't Pay?

If payment of the assessed amount is not received by the due date you will be liable for interest, charged and compounding on a monthly basis, on any amount that remains unpaid. Compounding interest charges, that may be subject to change during the year, are calculated and imposed on unpaid amounts on the 16th day of each month.

Certificate of Rates, Land Tax and Other Charges

Following the lodgment of an application together with the determined fee (currently $38 per property), the ACT Revenue Office will issue a Certificate of Rates, Land Tax and Other Charges to the applicant. The applicant must complete the declaration stating that the certificate is to be used for conveyancing purposes only.

Applications for a Certificate of Rates, Land Tax and Other Charges can be lodged and paid for:

• online through the Canberra Connect Web Site (Canberra Connect );
• at the counter at the Customer Service Centre (Plaza Level, Canberra Nara Centre); or
• by post (PO Box 293 Civic Square ACT 2608).

The Certificate will enable the applicant to calculate the amount of Rates, Land Tax and Other Charges to be allowed for at settlement of a property transfer. Please note that it is not the responsibility of the ACT Revenue Office to calculate settlement balances and that any monies owing following settlement and transfer of a property are the responsibility of the new owner/s.

The certificate can be delivered to the applicant by facsimile, post, Document Exchange (DX) or held for collection from the Customer Service Centre (Plaza Level, Canberra Nara Centre).

Application for Certificate of Rates, Land Tax and Other Charges

• Online Application 
• Manual Application  (51Kb)

Online Application

Application for Certificate of Rates, Land Tax and Other Charges can be lodged and paid for at the Canberra Connect Web Site (Canberra Connect ). The determined fee (currently $38 per property) can be paid by credit card (Visa and Mastercard only).

Manual Application Form

Applicants not wishing to use the online facility can print an Application for Certificate of Rates, Land Tax and Other Charges  (51Kb) and lodge it, along with the determined fee (currently $38 per property) either:

• in person at the

ACT Revenue Office Customer Service Centre
Plaza Level, Canberra Nara Centre
Corner London Circuit and Constitution Avenue - Entrance on London Circuit
Canberra City

or

• by post to

ACT Revenue Office
PO Box 293
Civic Square ACT 2608

You may also obtain an Application for Certificate of Rates, Land Tax and Other Charges from the ACT Revenue Office Customer Service Centre.