Land valuation changes don’t mean more rate income for Council

Published on 14 April 2023

Every three years the NSW Valuer General notifies property owners of their current property value, following a process of revaluation of all real estate in NSW. These updated valuations are currently being sent to property owners in the Snowy Monaro.

There is a misconception that higher land values means Council receives more total income from rates. This is not the case. Council’s total rate income changes by the rate peg once per year, a percentage set by the Independent Pricing and Regulation Tribunal (IPART). Outside of a Special Rate Variation, this is the only way Council’s total rate revenue can increase.

Council uses land values to determine what proportion of our total rate income each property must pay. The total amount of money we raise from rates remains the same when values change, but the amount each ratepayer needs to pay may be different. The total amount of rate income Council can raise cannot exceed the limit set by IPART.

Council’s Revenue Policy details how rates are calculated by each rating category (residential, business, farmland, etc.) and can be viewed online at https://qrco.de/SMRC-RP

According to the latest data released by the NSW Valuer General some land values in the Snowy Monaro have increased by 200-400%. Land in New South Wales is revalued for rating purposes once every three years. The new valuations will be used to calculate rates for the 2023/24, 2024/25 and 2025/26 financial years, at which point land values will be revalued again.  

Ratepayers can obtain their updated land values via the NSW Valuer General’s website:  https://qrco.de/VG-SMRC

Council has no role in determining the valuation of land. If you have concerns regarding your valuation, you can lodge an objection within 60 days from the issue date of your Notice of Valuation. These objections must be lodged with the NSW Valuer General. For details, visit https://qrco.de/VG-concerns

Our updated rates calculator is the easiest way to see how the new land values and the potential Special Rate Variation (SRV) may affect your rates notice.

This calculator is online now at www.yoursaysnowymonaro.com.au/special-rate-variation

The dollar value of land value changes are separated from the dollar value of rate variation changes in the calculator for ease of understanding. Any SRV would apply to the latest valuations from the NSW Valuer General.

For further information call 1300 345 345 or email council@smrc.nsw.gov.au