Due Dates for Rates Instalments
Rates are levied each year for the period of 1 July to 30 June. You will receive an annual rates notice and then instalment notices four times a year, unless you pay for the year by the first due date – 31 August.
Rates are paid in 4 instalments as required by s167(1) & (2) of the Local Government Act 1989. Instalment amounts and their due dates for payment are listed on the front page of your rates notice.
You will receive a reminder before each instalment is due.
If your instalments are not paid on time, you may be charged interest.
| Instalment | Due Date |
|---|---|
| 1st Instalment | 31 August |
| 2nd Instalment | 30 November |
| 3rd Instalment | 28 February |
| 4th Instalment | 31 May |
Rates FAQs
How are my rates calculated?
Approximately half of our total income comes from rates and charges. We use this money to help fund a whole range of facilities and services in our city, from parks and sports fields to roads, libraries, health and safety, community events and youth services.
The total amount of rate income that council can raise from rates and charges is limited by the rate peg percentage, determined on an annual basis by the Independent Pricing and Regulatory Tribunal (IPART). How much you pay as an individual depends on the type of land you own.
In Shellharbour City there are three land categories: farmland, residential and business. Your rate category is shown on the front of your rate notice. If you don’t agree with your category you can apply to have it changed by contacting our rates department on (02) 4221 6111 or by emailing council@shellharbour.nsw.gov.au.
All rates are calculated using the land value of the property. The land value is determined by the NSW Valuer General, not by Council. Any queries regarding your land value should be directed to the NSW Valuer General.
The Valuer General issues new land values to councils to use in levying rates every three years. Council recently received the land valuations to be used for levying rates for the 2023/2024 rating year. The land valuation aims to reflect the market value of the land only, as at 1 July 2022 (the base date).
If your land has more than one use, for example if you have a shop with a flat upstairs, your rate is worked out using a formula that takes both uses into account. Once your land value is worked out, it’s multiplied by a figure known as the “rate in the dollar”. If your property is residential, a “base amount” is also included.
How do we set the rate in the dollar?
The rate in the dollar is calculated by dividing 55% of the total amount collected through residential rates, by the total land value of all residential properties in the Shellharbour LGA. Your share of this is based upon the valuation of your property.
The Base amount
As well as the rate in the dollar amount, the remaining 45% of our residential rate income comes from a base amount. This charge is the same for all residential properties.
What about heritage listed properties?
Properties that are formally heritage listed may be eligible for a reduction in rates. If you believe the land that you own should be Heritage Listed, you need to apply for Heritage Land Valuation through the Valuer General's Office.
Will rates change?
Under the Local Government Act 1993, the total amount of income that a council can raise from rates is limited by the “rate peg” percentage.
The Independent Pricing and Regulatory Tribunal determines the rate peg that will apply to each Council. For 2023/2024 Shellharbour City Council has been given approval to increase total rate income by a maximum rate peg amount of 3.7%
When do interest charges apply?
By law, you will be charged interest if your rates instalment is not paid by the due date shown. The rate of interest is 9% per annum for 2023/2024.
How is land value calculated?
The land value is determined by the NSW Valuer General, not by Council.
The NSW Valuer General provides these valuations for Councils to use when assessing rates. Council cannot amend these land valuations and must rely on the valuations supplied by the Valuer General. Any queries regarding your land value should be directed to the NSW Valuer General.
How will the revaluation of land effect my rates?
The recent revaluation of all land in the Shellharbour Local Government Area (LGA) saw land values across the LGA rise by an average of 62% (residential 56%) compared to the last revaluation in 2019.
There is a common misunderstanding that increased property valuations will result in increased income from rates for councils. This is not the case.
In a rating year where land valuations remain unchanged, the rates levied on each property will increase by the rate peg percentage.
In a rating year where a revaluation occurs, changes in the rates levied on individual properties will depend on their respective increase or decrease in land value. Some rates will increase, some will decrease and some may stay the same.
For example, if your property’s land value has increased by 70%, your rates will increase by more than a property with a land value increase of only 40%.
Council’s income from rates however will only increase by 3.7%.
For further information, questions or concerns regarding your land valuation, please contact the NSW Valuer General. Details are printed on the back of your rates notice.