Blue Mountains City Council

Your Rates

Introduction: What are Rates?

Rates are charges levied on land within Council Local Government Areas (LGAs). Council charges rates in order to provide essential services to our community.

Just a few examples of these services include:

  • Libraries 
  • Community programs 
  • Parks and gardens
  • Road maintenance
  • Signage
  • Ranger Services / Regulatory enforcement
  • Public amenities (e.g. pools)
  • Enquiries and Information / Customer service

In paying rates, the community contributes to many of these important services. These services are essential as they provide and maintain an acceptable standard of living for our city.

Council is required by law to charge rates. Council has some flexibility in working out these charges, and may apply slightly different rates to different locations throughout the city to ensure that charges are as reasonable as possible.

Under the Council Charter, Section 8 of the Local Government Act (1993) it states that Councils are required to:

"[to] raise funds for local purposes by the fair imposition of rates, charges and fees, by income earned from investments and, when appropriate by borrowings and grants."

Council has a responsibility to review the rating structure annually to make sure that rates are being charged fairly.
Council is continually looking at the different components that make up the rates, to make sure that they are levied in accordance with the above charter.

How are Rates Calculated?

Rates are levied, based on several different factors. These are listed below:

Rate Pegging

The Department of Local Government determines the maximum amount that Council can receive in income each year, for rates. This is known as rate pegging.

For many years now, the State Government has imposed this rate-pegging legislation on all Councils. This legislation limits the amount of income that Council can obtain each year as a fixed percentage of its income.

Based on these fixed amounts, Council decides upon the best way to distribute the new charges across the City. The rate pegging applies to the total income from rates and may not apply to each specific rate assessment.

Distributing Rates across the City

It is important to understand why Council uses different calculation rates for different towns within the Blue Mountains. These calculations - officially known as 'ad valorem' (or rate per dollar) amounts, have been applied with consideration to the characteristics of each town. Some considerations are:

  • The population of the town
  • The infrastructure available to that town (e.g. transport, libraries, community-centres, bush fire brigades etc.)
  • Presence of a Post Office and individual postcode
  • Closest neighbouring town or village

Council has traditionally levied different rates for various towns and categories in an attempt to evenly distribute the rating responsibility. This considers the wide variations in land values and in land use, across the City. Council receives extensive legal advice and has consulted with the Department of Local Government to ensure that the rate structure (implemented in 1997/98) continues to comply with the Local Government Act.

The ad-valorem charges also differ, according to whichever category the land belongs to.

Rating Categories

When charging rates, Council also applies one of the following land categories:

  • Residential
  • Business 
  • Farmland 
  • Mining

The most common category used in the Blue Mountains is Residential. This category applies to all land that is used or intended for ordinary, domestic purposes. The Business category applies to any property that is used for commercial purposes. These properties are usually located within a town centre or a business precinct.

Unimproved Land Value

Council rates are charged, using the unimproved value of the land for each property. The Valuer General determines the unimproved land value, and this value is updated every three to four years. The unimproved land value of a property does not reflect the market or real estate value of a property; it is simply a value upon which taxes and rates can be calculated.

Additional Charges

In addition to the ordinary rates charge, Council also applies a domestic waste charge and an emergency services levy to all residential properties. These charges are outlined in the Summary of Charges further down this page.

Please note that the vacant domestic waste charge is applicable to all vacant domestic land. A full domestic waste charge is applicable for all other residential properties.

Special Rates Levies

Council has the ability to levy special rates on various towns throughout the city. These charges will be levied occasionally to assist in the repayment of loans for specific works.

Three recent examples include:

  • 2005 Environmental Levy
  • Springwood Town Centre
  • Bushfire Control and Emergency Services

The Springwood Town Centre special rate was introduced in 1997/98, affected properties within the 'Residential K' rating category and concluded at the end of the 2006/2007 rating year.

The 2005 Environmental levy was applied in the 2005/2006 rating period, following exhibition and Council approval.

The levy was calculated as part of the increased ad-valorem charge used for rates and will enable Council to allocate 1.2 million dollars annually to environmental projects and as a long-term initiative to regenerate, repair and improve the local environment.

For the 2009/2010 rating period the Minister for Local Government approved an increase of 3.5% to ordinary rates and this has been distributed on average according to unimproved land values.

Calculating Charges for Rates

Rates for the Blue Mountains are calculated, based on a specific ad-valorem rate, as determined by the location of the property, along with its rating category.

This rate is then multiplied by the unimproved land value for each property, and this determines the base charge for rates.

Please note: The ad-valorem rate includes the environmental levy.

In addition to this charge, Council applies an annual waste charge and an emergency services charge.

Example: If a parcel of land in Katoomba has an unimproved value of $200,000 then the calculation is as follows:

NOTE: Katoomba and Leura residents are covered by the 'Residential G Category': 0.00404239

$200,000 X 0.00404239

=

$808.48

Waste charge (140L Bin)

=

$214.00

Emergency Services

=

$41.12

TOTAL

=

$1063.60
Summary of Charges - 2008/2009 Financial Year

Emergency Services Charge

$41.12

Waste Services Charge (240L Bin)

$274.00

Waste Services Charge (140L Bin - Mini Bin)

$214.00

Waste Services Charge (Vacant)

$100.00

Non-Rateable Waste Services - Domestic (General)

$180.00

Non-Rateable Waste Services - Domestic (140L bin)

$214.00

Non-Rateable Waste Services - Domestic (240L Bin)

$274.00

Non-Rateable Waste Services - Recycling (140L Bin)

$87.00

Minimum Rate (Residential A and B)

$431.60

Minimum Rate (all other rating categories)

$789.70

Environment Levy

ad-valorem rate

Note: These charges are all exempt from GST
Land Valuations and Revaluations

The 2009/2010 rates have been levied based on land valuations issued by the Valuer General in 2007 (base date 1 July 2007).

Revaluations are required by legislation and are received by Council every three to four years, and has been received by the Council which will form the basis of the current 2009/2010 rates.

The Valuer General determines land values by investigating the sale prices of similar parcels of land in each area, taking into account the zoning of the land, its subdivision potential and the location and topography, or landscape, of the area.

Not all parcels of land have received the same increase in value, and in order to address this fairly, changes have been made to the spread of the rates charges, based on the ad-valorem rate for each town.

If you believe that the value of your land has been calculated incorrectly, an application can be made to the office of the Valuer General, Department of Lands on 1800 110 038 for review. All objections must be made on the approved Department of Lands form within 60 days of receiving the valuation advice.

Rates Rebate for Pensioners

If you have a current Pensioner Concession Card you may be eligible for a pensioner rebate. You may also be eligible if you are a current Veterans' Affairs Pension recipient, depending on the type of benefit you receive.

Please contact Council prior to application to discuss your eligibility.

Download a pensioner rebate application form at right. Alternatively contact Council on (02) 4780 5000.

NOTE: Rebate applications must be returned in person to Council either at Springwood or Katoomba Customer Centres.

If you have become an eligible pensioner since the last rates notice was issued, please contact Council. A rebate may apply proportionate to the number of full quarters remaining in the financial year.

Paying Council Rates

Rates can be paid in the following ways:

 

At Council

Post Offices

Mail

BPay

Phone

Internet

Credit Card

Y

Y

Y

 

Y

Y

Cash

Y

Y

 

 

 

 

Cheque

Y

Y

Y

 

 

 

Money Order

Y

Y

Y

 

 

 

EFTPOS

Y

Y

 

Y

 

 

Direct Debit

Y

 

 

 

 

 

You can now pay your rates by credit card. You will need your rates notice and credit card. To pay your rates by credit card using the Bill Pay service click here.

By Mail - send a cheque or money order made payable to 'Blue Mountains City Council'. Mail it, along with the DEPOSIT SLIP from your rates notice. Please allow sufficient time for postage.

By telephone - dial Australia Post on 131 816 and have your MasterCard / Visa ready, along with your rates notice and follow the instructions. You can also call Council on (02) 4780 5000.

By direct debit authority - Council can deduct your rates instalment directly from your bank account. Contact Council's rates section for more information. Alternatively, download a Direct Debit request form, at right.

At any branch of Australia Post- present your rates notice and pay over the counter.

In person- Visit Council at our Katoomba or Springwood Customer Centres. Bring your rates notice and pay by cash, cheque or credit / debit card. EFTPOS facilities are available.

PLEASE NOTE: A 1% Service fee (Inc. GST) is applicable to all of our credit card transactions and is charged to offset bank fees that Council attracts for offering Credit Card as a payment option eg. Service fees are equal to $1.00 for every $100.00 paid to Council.