No rates windfall from subdivisions

Learn how your rates are calculated.

This article appears in City Limits magazine - Issue 54 - March 2017.   City Limits 54 front cover photo

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Contrary to a commonly held belief, Council does not receive a cash windfall when blocks of land are subdivided to increase the number of rateable properties.

Council is responsible for maintaining about $1 billion worth of community assets, including roads, footpaths, reserves, stormwater drainage and libraries.

Each year, Council sets a budget to maintain infrastructure and deliver services. The current budget is around $86 million per annum, which is predominantly derived from rates.

To determine the amount each ratepayer contributes, Council divides the total required rate revenue by the sum of all property values in the city. This provides what is known as "the rate in the dollar".

The value of a property is then multiplied by the rate in the dollar. This shows the rates payable for that property.

The rate in the dollar is adjusted annually to offset movements in property values across the city. This ensures Council doesn’t collect revenue over and above what is required for its annual budget.

House values are determined independently by the Office of the Valuer General.

In setting its rates, Council aims to provide services and maintain infrastructure without placing a financial burden on ratepayers.

Upgrades to footpaths, roads and stormwater drainage that may be required as part of new developments are factored into budgets.

The average household rate rise in the City of Marion for 2016/17 was 2.5 per cent. This follows 2.9 per cent in 2015/16 which was the lowest rate rise in more than 10 years.


City Limits Magazine

The City Limits Magazine is a community publication that keeps Marion residents in touch with what is happening in their community. It includes information about major projects, council initiatives and events, as well as profiles of community members.

It is published three times a year and distributed to 40,000 residents and businesses in the Marion Council area.