Rating structure
Information on Bega Valley Shire Council's Rates and Charges.
The rating structure for general rates is based on a combination of two elements, the first being a base rate that is equally applied to all properties. The remainder of general rates are calculated on a rate in the dollar, often referred to as the ad valorem rate, based on unimproved land value assigned by the Valuer-General.
Council aims to keep the base rate total income as close to 50% of the total rate yield as practicable. The remainder of general rates are calculated on a rate in the dollar, often referred to as the ad valorem rate, based on unimproved land value assigned by the Valuer-General.
Land valuations are based on market movements reviewed every three to four years. Properties in the Bega Valley were last valued in 2022 and these valuations inform the rating for 2024-25.
Land categories
Categorisation of all rateable land in the Bega Valley Shire has been undertaken in accordance with Chapter 15 of the Local Government Act 1993.
- Farmland - Applies to all properties in the Bega Valley Shire that satisfy the farmland criteria in the Local Government Act 1993.
- Residential - Applies to all properties where the dominant use is residential or in the case of vacant land, where it is zoned or otherwise designated for residential purposes.
- Business - Applies to all properties that cannot be categorised as farmland or residential.
Exempt land
Some land is exempt from the base rate and ad valorem along with water and sewer access charges. These exemptions are defined in the Local Government Act 1993.
Rate Peg
Rate pegging limits the amount by which Council can increase its rate revenue from one year to the next. The amount of the rate peg each year is set by the Independent Pricing and Regulatory Tribunal of NSW (IPART). The rate peg amount for Bega Valley Shire Council 2024-25 is 4.9% inclusive of a 0.4% population factor.
Special Variations
Council submitted a Special Rates Variation (SRV) application to the Independent and Regulatory Pricing Tribunal (IPART) on 3 February 2023. The application requested a permanent increase to general rates of 24% in 2023-24 (inclusive of a 4.1% rate peg) and 19.6% in 2024-25. Council had assumed a 2.5% rate peg for 2024-25 however IPART confirmed in December 2023 that the rate peg will be 4.9% for 2024-25 resulting in a shortfall for Council.
The SRV will provide additional rates income of $6,543,355 in 2024-25. After the two-year SRV has been applied, the notional general income from rates will be $39,927,823.
Each year Council obtains income through a range of existing Special Variations to rates. These increases were approved either by IPART or the Minister for Local Government and provide funding for a specific purpose.
| Name | Purpose | 2024-25 Revenue |
Status |
|---|---|---|---|
| Environmental Levy | Biodiversity management, waterways protection and sustainability | $471,690 | Ongoing |
| Emergency Services | Emergency Services, engineering administration for RFS and loan repayments | $982,330 | Ongoing |
| Libraries, Gallery, Tourism Centres and Weeds | Libraries, gallery, tourism and weeds management | $1,118,390 | Ongoing |
| Various Transport and Recreation Infrastructure and Lifeguards | Road stabilisation, timber bridge rehabilitation, culvert restoration, footpath trip hazard, recreation buildings and pools, ocean lifeguards, urban street construction, kerb and guttering | $1,335,060 | Ongoing |
| Tourism Promotion and Merimbula Airport | Tourism promotion and Merimbula Airport | $803,200 | Concludes 2031 |
| Collector Roads, Recreation Facilities, Public Domain Areas and Buildings | Renewal of collector roads, recreation facilities and access roads and infrastructure renewal of public domain areas and buildings | $1,688,780 | Ongoing |
| Asset Renewal and Services | Reduce infrastructure backlog, fund ongoing operation, maintenance and renewal of assets and services, improve Council’s financial sustainability | $10,452,460 | Ongoing |
Projected General Rates Income – includes approved Asset Renewal and Services SRV
The rate peg for 2024-25 is set at 4.9%. The approved SRV (19.6% in FY25 inclusive of the 4.9% rate peg) will provide additional revenue of $6,543,355 in 2024-25.
| Category | Base Rate $ | Ad Valorem Amount cents in dollar | Base Rate % | Number of Assessments | Rate Yield $ | Rate Yield % |
|---|---|---|---|---|---|---|
| Residential | 804 | 0.00229241 | 45 | 18,762 | $33,577,164 | 84 |
| Farmland | 804 | 0.00229241 | 24 | 788 | $2,571,989 | 6 |
| Business | 804 | 0.00614966 | 19 | 874 | $3,778,670 | 10 |
| Mining | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 20,424 | $39,927,823 | 100 |
Related information
© Bega Valley Shire Council 2024
Our council websites
Contact Us
- 02 6499 2222
- council@begavalley.nsw.gov.au
-
Zingel Place
PO Box 492
Bega NSW 2550 -
Monday to Friday 9.00AM to 4.30PM
Administration building Zingel Place Bega
Australia -
ABN: 26 987 935 332