How rates are calculated

For more information about what your rates help pay for, see our Rates Notice brochure.

The formula used for calculating General Rates

The term General Rates refers to the amount you are charged before any additional charges are applied.

The formula for calculating your General Rates is:

Capital Improved Value x Rate in the dollar = General Rates

For a property where the Capital Improved Value is $1,475,000 the calculations would be:

The Victorian Government's Local Government website has more information about how rates are calculated.

Other charges on your rates notice

In addition to the general rates levy, your rates notice will also include:

• a waste services charge 
• the State Government Emergency Services and Volunteers Fund
• any overdue rates (arrears) from previous years.

Why do rates vary between councils?

If you own property in another local government area and wonder why some rates are more or less than others, this is because each council has different budgetary requirements for:

• capital works
• proposed works
• ongoing costs to maintain services in the local government area.

What is rate capping?

The State Government has capped rate increases at 3 per cent for 2025/2026. We have elected to apply this 3 per cent increase rather than seek an exemption from the cap. 

It is important to remember that the cap of 3 per cent applies to the overall rate revenue raised by the council and not each individual property.

Most properties will experience rate increases that are slightly lower or higher than 3 per cent. If your Valuation has either decreased or increased more than the average, it is likely you will see a rate increase lower or higher than 3 per cent.