In Greater Bendigo, we currently have 11 different rates for different property types, including:

• 3 commercial/industrial rates
• a farm rate
• a vacant land rate and
• a residential rate

The City needs to make sure that the difference between these rates stays fair and equitable for all ratepayers.

For example, farms have a lower differential, meaning they pay a lower amount of rates per dollar of property value than other types of ratepayers. This is considered fairer because farmers generally need large amounts of land to run their businesses but their property size does not reflect their income or capacity to pay.

Want to see the differential Rates Chart in a larger version, click the link below:

Go to larger version

• Through the Annual Budget process and monitoring of community needs, the Council determines how much income can be raised and used within the ‘rates cap’ set by the Victorian Government (known as the Fair Go Rating system)
• At the end of each financial year the City knows how much money there is (funds) for the year ahead from rates charged throughout the year
• This total amount is divided by the total value of all the properties in Greater Bendigo that are subject to rates charges
• This gives a total that we call the 'rate in the dollar' – the rate in the dollar is usually less than a tenth of a cent
• Your property is valued by the Valuer-General of Victoria (VGV) each year. The City does not value properties
• To work out individual property rate amounts we multiply the value of your property (e.g., $700,000) by the rate in the dollar amount for your type of property (e.g. the residential rate in the dollar of $0.00287145)
• When these are multiplied together the answer is what your rates will be for your property for the following financial year (in this example, the rates are $2,010)

Additional charges:

Fire Service Levy: property owners pay a yearly fire levy fee to support emergency services. Every property owner must pay this fee. The City collects this levy on behalf of the Victorian Government, and gives the Victorian Government the money collected every quarter.

Bins and waste services charges: these charges are calculated on the costs for collecting general waste bins and other waste related services to the community. The Council does not make a profit on these services and only charges what is needed to cover costs.

Property owners pay an annual levy through their council rates to support emergency services. Every property owner must pay the levy.

The levy started in 2013 following a recommendation of the Bushfire Royal Commission.

The Victorian Government has advised that they intend to replace the Fire Services Property Levy (FSPL) with the Emergency Services and Volunteers Fund (ESVF) from July 1, 2025.

Every dollar raised through the ESVF will go towards vital life-saving equipment, vehicles, staff, training for volunteers, community education, and recovery support for when Victorians need it most.

More information can be found at: https://www.sro.vic.gov.au/fire-services-property-levy

Want to view this information larger click the link below

Go to larger version

1. Date of issue: If you disagree with the valuations or AVPCC appearing on your rates notice. You have 2 months from the date of issue to object

2. Capital Improved Value: This is the assessed marked value of the property. Site value is included in this

3. Site Value: This is the assessed marked value of the land, excluding buildings

4. Mailing address: Mailing address of the ratepayer

5. BPAY Reference Number

6. General Rates

7. Bin and Waste Services Charge

8. Victorian Fire Service Levy

9. AVPCC (land use code): is a system that gives a specific code to land based on how it is currently used. This code is included in every property valuation according to the Valuation of Land Act 1960. The valuer is responsible for the AVPCC.

10. Rebates/Payments/Discounts

• In the 2016/2017 financial year, the State Government introduced the Fair Go Rates System. The system caps the amount Councils can raise the general rate by in any given year
• Councils can apply for a variance to the cap; the City has not applied for a variance to the rate cap since the system was introduced
• The Essential Services Commission administer rate caps by providing the minister with advice on setting the rate cap for councils
• The cap does not apply to waste removal charges or the State Government Fire Services Property Levy. Percentage movements in waste collection charges can be found in the annual Budget
• The rate cap for 2025/2026 is 3%

When reviewing the revenue and rating plan, the City have considered the following good practice taxation principles: equity; capacity to pay; efficiency; diversity; and benefit and simplicity.

Equity:

Horizontal equity – ratepayers in similar situations should pay similar amounts of rates (i.e., accurate property valuations, undertaken in a consistent manner, their classification into property classes and the right of appeal against valuation).

Vertical Equity – those who are better off should pay more rates than those worse off (i.e., progressive and proportional income taxation, inplying “relativity” to the fairness of the tax burden).

Efficiency: Economic efficiency is measured by the production and consumption by people are affected by rates

Simplicity: How easily ratepayers understand the rate system, it's practicality and ease of administration

Capacity to pay: The capacity of ratepayers to pay rates

Diversity: The capacity of ratepayers within a group to pay rates

Benefit: The connection between consumption and benefit and the rate burden

Key Findings:

• Over the past five years the commercial/industrial rate burden has decreased compared to other rating categories
• Farms have experienced significant increases between 2022-2025 compared to other rating categories
• The City’s farming sector experienced a significant decline in 2023/2024 growth in farm incomes in all key commodity areas. This is expected to continue in 2024/2025
• Commercial/Industrial make up 8.35% of all ratepayers
• Farms make up 2% of all ratepayers

The City is not involved in deciding how much a property is worth. All properties are valued independently by the Valuer-General of Victoria (VGV) and reflect the fair market value as at January 1 each year.

The valuers representing VGV work out valuations by collecting and analysing:

• Property sales
• Planning and building permits
• Planning information
• External and internal inspection data
• Occupancy data

The information is then applied to individual properties. It takes into account the different characteristics of each property.

The three valuations shown on a rates notice are:

• Site Value (SV) - is the market value of the land only
• Capital Improved Value (CIV) - is the total market value of the land plus buildings and other improvements
• Net Annual Value (NAV) is either 5 percent of the CIV or the current value of a property's net annual rental. For example, residential properties are 5 percent and commercial/industrial properties are gross annual rental less outgoings including insurances, land tax and maintenance costs

Rates at the City are calculated based on the Capital Improved Value (CIV).

Ratepayers can object if they disagree with the value of their property. An objection must be lodged within two months of the date of issue on the rate notice. Objections are lodged through the Rating Valuations Objection portal.

For more information relating to valuations can be found here: https://www.land.vic.gov.au/valuations/valuations-for-rate-and-land-tax/the-valuation-processes

The below links are to additional information you may find helpful:

City of Greater Bendigo Rates website page

https://www.bendigo.vic.gov.au/residents/rates

City of Greater Bendigo financial hardship guidelines

https://www.bendigo.vic.gov.au/about-us/plans-strategies-and-documents/financial-hardship-guidelines-and-payment-arrangements

A fair go rate system for Victorians

https://www.localgovernment.vic.gov.au/our-programs/a-fair-go-rates-system-for-victorians

City of Greater Bendigo Rates brochure

https://www.bendigo.vic.gov.au/sites/default/files/2024-08/City-Greater-Bendigo-Rates-Brochure-2024.pdf

City of Greater Bendigo Rates notices explained

https://www.bendigo.vic.gov.au/residents/rates/rates-notice-explained

Local Government Victoria calculating rates

https://www.localgovernment.vic.gov.au/council-innovation-and-performance/council-rates-and-charges/calculating-rates