Rates are one of council’s primary income sources, which is used to provide service delivery and infrastructure to their communities.

The level of rates land-owners must pay is at the sole discretion of their council.

The following brochure has information on how rates are determined, what they are used for, types of rates and charges, the affect of council amalgamations on rates, and the affect of land valuations.

Council rates and charges ( 509 KB)

Council rates and charges explained

• What are some of the different types of rates or charges a local government can levy?

  General Rate - a rate levied equally on the unimproved value of the land and expressed as a number of cents per dollar of valuation. It is the same rate for all land in the local government area.

  Differential General Rate - where it will be inequitable to levy a single general rate on all land, the Council determines differential categories of land and may levy a different rate on each category. There is no maximum number of categories, but the minimum is two.

  A Council must levy either a general or differential general rate on all rateable land each year.

  Minimum General Rate - a Council may set a minimum amount of a general or differential general rates.

  Separate Rate or Charge - a levy on each rateable parcel of land in the local government area for a specific service facility or activity. For example, environment levy, waste management levy and bushland preservation levy.

  Special Rate or Charge - a levy on specific land, which receives a special benefit from the provision of a service, facility or activity. Typical examples are rural electrification, road maintenance and rural fire levy.

  Utility Charge - a charge for the provision of water, gas, sewerage or refuse collection services. Water charges may have a two-part charge for access and consumption.

• What is the difference between a rate and a charge?

  A rate is expressed as a number of cents in the dollar of valuation. A charge is a fixed dollar amount. Irrespective of the method of calculation they are all generically called "rates".

• What is the Urban Fire Levy?

  On your rate notice you may see an item for an 'Urban Fire Levy'. This money is collected as a rate through the rate notice and is paid to the State Government to fund Fire Services.

• How does a Council decide the level of rates?

  The way that local governments decide the level of rates to be imposed on land owners is a relatively complex process which must comply with the framework set by the Local Government Act 1993 and City of Brisbane Act 1924 (Brisbane City Council only).

  Rates are determined by Councils according to the range of services they intend to provide and how much revenue they need to raise in order to pay for those services.

  Councils must formulate a budget, considering how much money they need to provide, for example, for waste management, local roads, suburban care, community services, dog control and any other services they provide.

  Once they estimate required spending in that year, Councils then consider how much they can expect to receive in funds from the Commonwealth and State Governments, then decide how much they need to raise from rates to cover the balance of expenditures.

  For example, if a Council decides it needs to raise $5 million, it can choose to spread this burden equally across all ratepayers or, as many Councils do, divide the rating burden differentially between industrial, commercial, high-rise units, residential or farming land.

  Consideration may also be given by Councils to reduce the rates burden of those with limited capacity to pay.

• Who decides the rate in the dollar?

  The Council decides the rate in the dollar. The rate in the dollar is decided after all other separately identifiable revenue sources have been identified and the remainder is the amount the Council requires to fund its services for the year. A rate in the dollar is then decided to raise this amount of revenue. The general rate is the outcome of this process.

• Do valuations impact on the amount of rates I pay?

  In most urban areas the total amount of the rate account is made up of a number of different rates and charges. A portion of these are based on the unimproved value of land, and are called a general or differential general rate. However, an increase in valuation does not mean an increase in rates. This is a decision for Council.

  None of the Councils in Queensland rely solely on a single general rate for all of their rate revenue.

  It is not the valuation which determines the amount of the rates you pay. Rather it is the 'rate' which a Council applies to that valuation which determines the amount of rates you pay. The level of this rate is decided by the Council as a part of their budget process.

• What if I live in a townhouse or unit complex?

  As an owner of a lot in a Community Titles Scheme the valuation notice for the whole scheme will be sent to the Body Corporate and the Council will apportion this value in accordance with your interest schedule of lot entitlement. You will then be rated on your apportioned valuation.

• What can my Council do to reduce the impact of valuation increases?

  Councils have a number of tools at their disposal to minimise the impact of valuations and all Councils employ these to a lesser or greater degree. These are:

  Differential General Rates - creates different categories of land, which may be based on land use, access to, or consumption of Council services, or even valuation bands. Each of these categories may have a different rate applied to it to equitably share the revenue burden.

  Averaging over 2 or 3 years - valuations may be averaged over the last two or three years and the rate levied against that averaged value.

  Limitation of Increase (Rate Capping) - Councils can limit the increase in rates by specifying a percentage over the previous years rates (a cap) above which rates will not rise.

  Separate and Special Charges - a charge to fund specific services facilities to activities and by doing so reduces the impact of valuation based rates.

  Concessions - Council can decide to reduce the burden on some ratepayers such as pensioners or other persons in the case of financial hardship. In addition, the State Government provides a rate concession for eligible pensioners of 20% of the gross rates and charges up to a maximum of $180 per year.

  All of these powers can be used in combination or separately to minimise the impact of valuation on the amount of rates a property owner pays.

Further information

To find out how your Council intends to levy rates and charges, contact your local Councillor or Council directly. It is your Councillor who votes at the budget meeting for the rates and charges adopted by Council. Contact details for your local Council can be found in our Local Government Directory. The phone number for your local Council is also on the face of the valuation notice.

You can visit the Department of Natural Resources and Mines website at www.nrm.qld.gov.au.

To find out more about Land Tax, contact the Office of State Revenue on 1300 301547 or visit the land tax website at www.osr.qld.gov.au.