Your cover story on 25 January claims that land valuation rises could herald increases in Council rates. This is potentially misleading. A council’s total rate revenue is capped by the state government. The rates paid by an individual property are calculated by a formula using the property’s valuation. If that property’s valuation change is just average for its shire, no change in rates will occur.
The only way Council’s total rate revenue could increase is if it successfully applies for an increase above the cap.
Richard Staples, Talofa
Ed: Yes, according to Byron Shire Council’s website ‘An increase in total land valuations from the Valuer General does not increase Council’s total permissible annual rates revenue, they simply redistribute the rate burden between individual properties based on that property’s change in comparison to others… Generally, if your property’s land valuation increased by more than the shire average you will pay proportionally more rates than last year and if its land valuation was less than the shire average you may pay less.’
