A cap on rates increases
This financial year, the State Government has introduced a cap on Council rate increases. This means the total rate revenue raised in Moreland can only increase by a maximum of 2.5% – but, it doesn’t mean your rates will increase by that exact amount.
Changes to your rates are calculated based on any changes to the value of your property.
This year, Moreland properties have been revalued, with the average increase at around 19%.
What does this mean for me?
An increase of around 2.5%
If your property value increased close to the average of 19%, your rate increase will be near the 2.5% cap.
As an example, Mohammad owns a large family home in one of our booming suburbs. His home was last valued at $950,000, but this year it’s been valued at $1,130,000. His property has increased in value by 18.95%, which is pretty close to Moreland’s average increase. So, Mohammad’s rates increase will be around 2.5%.
An increase below 2.5%
If your property value has had little increase, or reduced in value, you may see little change, or even a reduction in your rates.
For example, Cora owns a small flat in a large development. Her property was last valued at $530,000, but this year it’s gone down in value and is now worth $495,000. This means Cora can expect a reduction in her rates this year, less than the 2.5% cap.
An increase above 2.5%
If the value of your home has increased by more than the average of 19%, your rates will go up by more than 2.5%.
As an example, at the last valuation, Isabella’s property was worth $375,000. But this year, her property is valued at $570,000. That’s an increase to the total value of her property of 52%. This means Isabella’s rates will increase by more than 2.5%.