FAQs

Why do I have to pay Council rates and charges?

Council helps our local community to run smoothly.  We administer various laws and regulations to help maintain and improve services and facilities for the community.  These services include community services, sporting and recreation services, environmental planning, building regulation, public health, environmental protection and waste collection, treatment and disposal.  The rates and charges you pay allow us to fund these services.

How does Council determine how much you have to pay in rates and charges?

Each council in NSW is required to determine the combination of rates, charges, fees and pricing policies needed to fund the services it provides to the community.  This is called a revenue policy.  The revenue policy contains a rating structure that determines which rates and charges you will have to pay and how they will be calculated.  Charges are generally determined on either an annual basis or according to usage – or they may be a combination of both.  Councils can choose how they calculate and distribute rates among categories of rateable properties in the council area.  In Canada Bay, rates are calculated based on land value, but subject to a minimum amount.  The land value is determined by the Land and Property Information Division of the Department of Lands (formerly known as the NSW Valuer General’s Office).

How does Council decide which category your property is in?

In NSW each parcel of land must be included in one of four categories for rating purposes – residential, business, farmland or mining. Council decides which category your property should be in based on its characteristics and use.  In Canada Bay, most people are charged rates under the residential or business categories.

What if you don’t agree with the land value of your property?

Council doesn't determine your land value.  Land is valued by the Valuer General at the Department of Lands under the Valuation of Land Act 1916 (as amended).  Valuations are carried out approximately every four years and property owners receive a valuation notice after it is done. If you don’t agree with the land value, you have 60 days to object.  The Department of Lands will give you an objection form free of charge by calling 1800 110 038 or you can download a form at www.lands.nsw.gov.au/valuation. Even if you lodge an objection, you must still pay your rates while your objection is being considered.  Whatever the Department of Lands decides about your objection, they must advise you in writing.  If you still don’t agree with the valuation, you have limited time to appeal to the Land and Environment Court. T he response sent by the Valuer General will explain the final date for an appeal.

Who decides whether rates will increase?

The NSW Government sets a limit on the total amount of income that every council can raise from certain rates and charges.  This is called the rate-peg percentage and it is specified by the Minister for Local Government each year.  Because of rate pegging, Council’s overall rates revenue cannot increase by more than the percentage increase approved by the Minister unless the Minister approves a special rate variation.  In 2009-10, the Minister has approved a 3.5% increase in rates.

Can your rates increase by more than the rate-peg percentage?

Yes.  Rate-pegging applies to Council’s overall general income and not to rates on individual properties.  Within rate-pegging it is possible for some rates to increase by more than the rate-peg limit while others may increase by less than the rate-peg limit.  This is because a combination of Council’s rating structure and valuation changes determine what happens to rates on an individual property.  Rating structures may change significantly from year to year and this year, Council is proposing to make some changes to the balance of our rating structure to ensure it is fair and equitable.

Are all rates, charges and levies limited by rate-pegging?

No.  Only certain ones are subject to rate-pegging.  Charges for waste management, water, sewerage and stormwater are not subject to rate-pegging.

Can Council increase its income by more than the rate-peg limit?

Yes.  Council can apply to the Minister for Local Government to increase general income by more than the rate-peg limit.  This is called a special variation application.  This year Council is making an application for a special rate variation to fund important infrastructure renewal.  We have included details of our proposal in our Draft Delivery Plan and Budget which is currently on public exhibition.  If approved, the Minister will specify the percentage by which Council may increase its general income.

Do you have to pay a domestic waste management service charge if you don’t use the service?

Yes.  The Local Government Act requires Council to apply an annual charge for providing domestic waste management services on all parcels of rateable land for which the service is available, whether or not it is actually used.  It is considered that all property owners should contribute to the current and future provision of waste services.

What if you cannot afford to pay your rates?

You may be eligible for a concession on the grounds of hardship.  Council may also be able to assist by agreeing to alternative payment plans or writing off interest on unpaid rates.  If you are having difficulty in paying your rates, you should contact Council as soon as possible to discuss the options available.

Can you be exempt from paying council rates?

There are some parcels of land that are exempt from rates and charges.  These include parcels of land within a national park and land that belongs to, for example, a religious body or school. Unless you meet the exemption criteria outlined in the Local Government Act, you cannot be exempt from paying rates.

What will happen if the special rate variation does not go ahead?

Without the special rate variation, Council's 2009-10 Budget is still designed to be a balanced one.  However if Council cannot generate the revenue needed to fund infrastructure renewal works, we simply will not have the money available to undertake the projects that have been identified.  This means that these items of community infrastructure will deteriorate over time and ultimately require major reconstruction.  This is likely to involve a far greater cost to the community and in all likelihood expose Council to significant public liability risk.

What concessions or rebates are available for pensioners?

Eligible pensioners are entitled to a concession of $250.  This amount is fixed by the NSW Government and does not increase with inflation or in line with rate increases.  However this year Council is also proposing to introduce a further rebate for eligible pensioners.  This would entitle pensioners to an additional rebate of $100 against the cost of their rates.

To be an eligible pensioner you must receive a pension from either Centrelink or the Department of Veterans’ Affairs, and be entitled to a pensioner concession card issued by the Commonwealth Government.  You can only claim a concession on the property if it is the sole or principal place you live.  To apply for a concession you need to complete a pensioner concession application form. You can obtain these forms from Council.