Rates shake-up looming

OWNERS of high-value units would pay more in council rates if a shake-up to change the way local government rates are levied in NSW goes ahead.

More costly abodes to be slugged more

A review of the local government rating system by the Independent Pricing and Regulatory Tribunal (IPART), proposes shifting from using a property’s “unimproved value” (the value of the land) to using Capital Improved Value (CIV) (the value of the entire property).
Under the existing system, the owner of a single storey dilapidated fibro cottage, pays the same rates as their neighbour with a two-storey brick home if they are on the same size block of land.
The change to CIV would mean each property owner would pay rates calculated on the total value of their home or unit.
A report on Cumberland’s proposed response to the IPART proposal, supports the move to CIV rating, noting that 35 per cent of the 23,072 strata units in Cumberland are “currently not paying an equitable amount” of rates.
Councillors deferred their decision to tomorrow’s council meeting, to get more information, however Merrylands unit owner Gillian Kirby says residents should have had the same opportunity.
“I do think the council should have held an information session or workshop that could have been attended by the public,” she said.
“I note the council report references that strata units are not paying an equitable amount.
“I imagine the proposed new rating structure would also secure a more equitable share from ratepayers with granny flats and secondary dwellings on their properties?”
Ms Kirby says she was also surprised that Cumberland Council’s report offered responses to items marked ‘not for consultation’ as no response is possible on the submissions page of the Office of Local Government website.