How does rate capping affect my rates?
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Rate capping was introduced by the Victorian Government in 2016. The rate cap limits the total amount a council can increase its rates each year based on the amount it levied in the previous year.
The rate cap applies to a council’s total revenue and not individual properties. In many cases an individual rate bill may increase or decrease by more (or less) than the cap amount.
In 2022/23 the cap has been set at 1.75%. This means the average property rate amount will increase by 1.75%. The cap applies to Council’s overall rates income, not individual assessments.
Individual property rate changes will vary and may be higher or lower than the rate cap depending on property evaluations. The key to determining your share of the total rates paid in the City of Ballarat is how your property value has moved in comparison to the average movement of properties in the city.
The Rate Cap does not apply to waste charges or the Fire Services Property Levy.
Could my rates be higher or lower than the rate cap?
The 2022 general revaluation, carried out by the Valuer-General Victoria, has resulted in an increase in residential property prices across the state.
In Ballarat, residential and rural residential valuations increased on average by 26.9% and 25% respectively. Commercial and industrial properties have experienced lower levels of growth at 7.6% and 10.9%.
The combined effect of 2022 valuation changes reduces the share of rates paid by commercial and industrial and moves a higher proportion to residential and rural residential properties.
Increases in property values do not result in increased rate revenue for Council; total rates collected are capped. As property values increase, the rate in the dollar figure decreases to ensure City of Ballarat complies with rate capping requirements.