About your Rates

Overview

Rates are used to provide essential services and to ensure adequate funds are raised to maintain the region’s infrastructure to a satisfactory level.

If you own a home or business property you will pay rates to your local Council, unless your property (for example a church, school or hospital) is exempt from rates.  Our rates are determined in accordance with the provisions of the Local Government Act 1993.

Click here to sign up to have your Rates Notices sent to you via email.

 

Rates Estimator

Rates Harmonisation may change the amount you pay for your rates from 01 July 2021. To check possible changes, use our online estimator or call us on 03 58983000.

ERC-INDIVIDUAL-RATE-PREDICTION-2021-2022.xlsx(XLSX, 789KB)

Due Dates for Rates 

Rates are paid every year and can be paid in full or by quarterly instalments.

If you are paying in full, your rates are due on or before 31 August each financial year.

The due dates for quarterly instalments are:

  • First Instalment – 31 August
  • Second instalment – 30 November
  • Third instalment – 28 February
  • Fourth instalment – 31 May.

In line with Edward River Council's Interim Debt Recovery and Hardship Policy Amendment the First Rate Instalment for 2020-21 will not be due to be paid until 30th September 2020.


Late Payments and Interest Charges

If you don’t pay your rates on or before the due date, interest (calculated daily) will be charged on the amount owing.  The interest rate is set annually by the Independent Pricing and Regulatory Tribunal (IPART).

The current interest rate for the 2017/18 financial year is 7.5 per cent.
Council may take legal action to recover unpaid rates and charge the cost of the action to the ratepayer (See Council's Debt Recovery and Financial Hardship Policy(PDF, 132KB))

Rates & Land Valuations

Land Valuations are supplied to all NSW local Councils for Rating Purposes. This occurs every three (3) years. You receive your Notification of Land Valuation from the NSW Office of Local Government – Valuer Generals Department (VG).

Should you have any enquiries regarding any Land Valuation Notification you have received, or the Land Valuation that appears on your Rates Notice please contact NSW State Government - Valuer Generals Department at:

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More Information

Rates Overpayment 

If the rates have been overpaid on a property, only the person who made the payment can apply for a refund.  Sufficient evidence of the payment will need to be submitted.

Financial Difficulties

If you are having difficulty paying your rates on time, please call the Council to discuss possible alternative arrangements, or complete the Agreement to Pay Rates Form(PDF, 260KB). This form requires a signatgure and therefore you will need to print it off to sign then return it to Edward River Council in person at 180 Cressy Street, by post to PO Box 270 Deniliquin NSW 2710 or email to council@edwardriver.nsw.gov.au.

If you are suffering severe financial difficulties you may apply for a financial hardship determination by completing the Hardship Relief Application Form(PDF, 736KB).

Change of Address

Contact us to change your mailing address in person, in writing or via email - We are unable to change your address over the phone.

Alternatively, download and complete the Change of Address Form and return to us via email, post or by dropping into our Customer Service Centre at 180 Cressy Street, Deniliquin.

 

Understanding Your Rates

Rates and charges provide Edward River Council with a major source of revenue which is used to meet the costs of providing services to businesses and residents of the Edward River local government area. Each year, the New South Wales Independent Pricing and Regulatory Tribunal (IPART) determines the allowable annual increase in general income for NSW councils, known as the rate peg.

How are your rates calculated?

The rate peg for the 2020-21 year is 2.6 per cent, Edward River Council has elected not to pass on this allowable increase for the 2020-21 Rate year. Rates are calculated based on the NSW Valuer General’s assessment of the unimproved capital value of the land and Council’s 2020/21 rate is based on the Valuer General’s July 2019 land valuations.

Council rates can generally be described as a tax on the wealth of property owners, where their wealth is measured by the value of their land (excluding improvements such as a house). However, in NSW, it would be more accurate to say that rates are a function of a property owner’s share of the total value of land within the local government area. Generally, the greater your share of total land wealth within your local government area, the higher your rates; although this depends on the type of rating system chosen by the council.

What is the ad valorem?

The ad valorem is the rate in the dollar applied to the value of the land (i.e. multiply the land valuation by the rate in the dollar). If using ad valorem only to calculate rates, properties with very low land values would pay comparatively low rates. Under the Local Government Act 1993, there are only two additional systems for imposing rates: a minimum rates system and a base rates system.

What is the difference between the minimum rates system and the base rates system?

Councils can rate on just the ad valorem otherwise they can choose between using:

1. A “minimum rates” system – Under this system a council compares the calculation of the ad valorem to the minimum rate it sets and charges the greater of the two. This is so that those with the lowest values do not end up paying very small amounts compared to others.

2. A “base rates” system – Under this system a council may impose a “base” amount that is the same dollar value for everyone, but they must then add an additional rate per dollar of land value. In this system, the total rates raised by the council from the “base” component cannot exceed 50 per cent of the total rates raised in the area.

Rates applied under either system may vary per dollar of land value depending on the category of land. There are four categories of land to which rates can be applied: residential, business, farmland and mining. Generally, councils apply lower rates per dollar of land value for residential land than they do for land occupied by businesses. While both systems are based on the concept of imposing taxes fairly, they can in practice have quite different effects. Under both systems the total increase in the yield of rates that may be raised by a council is capped each year by the NSW Government to around Consumer Price Index (CPI) but a lot of considerations go towards the rate peg percentage.

 Which rating system does Edward River Council use?

A restraint placed on merged councils under the amalgamation proclamation means Council is restricted from consolidating rating calculations or re-categorising until 30 June 2020, this has been extended to 30 June 2021. This means that Council currently operates different rating systems depending on the location of the property. The rating system in use includes different classifications, base rates and minimum rates. Details of the rating system are in Council's Revenue Policy. Council plans to review the rating system in preparation for the removal of the restriction. Any proposed changes to the rating system will involve community consultation. This work is being undertaken as a 2020-21 Operational Plan action for implementation in 2021-22.

How can changes in land value affect your rates?

Councils must set rates based on the value of each parcel of land in their area. The values are determined by the NSW Valuer General. The Valuer General issues Notices of Valuation to advise landholders of their new land value that will be used in the calculation of their council rates. Notices of Valuation are generally issued every three years, within the three year base year period the VG provides council with Supplementary Lists every four weeks which dictate land value changes to particular properties. This will almost invariably result in land value fluctuations every three years in the relative share of total land wealth in the council area. This in turn will result in a proportional shift of each property owner’s share of the total burden for rates.

Do high land values mean you pay high rates?

The permitted increase in the total yield of rates is capped every year by the NSW Government. Rates are therefore not simply a function of land value. Even though land values can rise very steeply, this doesn’t translate to steep rises in rates because of rate capping. Land values generally increase over time. If the land values issued at the time of the General revaluation were used to generate Councils Rate income at the rate in the dollar used for the previous year’s calculations, then Council would raise more income than it is allowed. In order to contain Councils income within the allowable limits, Council must reduce the rate in the dollar for each rating category. As the same rate in the dollar is then applied to each property within a rating category, the actual amount of rates payable is determined by the individual land valuation of the property. As a result, due to the individual changes in Land Valuations for individual Ratepayers, some Ratepayers will experience variations in their Rates that will either increase or decrease their rates for the first year after a General Revaluation. The Rates paid by some rate ratepayers may increase, decrease or stay the same in regard to the rate peg % limit set by IPART on behalf of the State Government each year. This will occur only as a result of a General Revaluation of all land values, which occurs every 3 years. (The determining factor is the land valuation on EACH individual property). OR, if Council is successful in an application to IPART for a Special Rate Variation above the set Rate Peg % amount for that year, which can be effective for up to 7 years.

All enquiries relating to your land value should be directed to the Office of the Valuer General on 1800 110 038. Or you can visit their website https://www.valuergeneral.nsw.gov.au/contact_us to learn more about the valuation of land.