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Local governments impose rates on the properties within their district to raise revenue to fund the services and facilities provided to residents and visitors.
The quantum of rates payable is determined by three factors: the method of valuation of the land, the valuation of the land and improvements, and the rate in the dollar applied to that valuation by the local government.
Land is valued according to its unimproved value for land used predominantly for rural purposes or gross rental value for land used predominantly for non-rural purposes. The Valuer-General values the land in accordance with the provisions of the Valuation
of Land Act 1978. The local government sets a rate in the dollar which is applied to this valuation to give the rates liability for each property.
Under the Local Government Act 1995 the Minister for Local Government is responsible for determining which method of valuation is to be used. This is based on the predominant use of land.
The purpose of providing the method of valuation is to ensure that properties are valued accurately to meet the needs of landowners, ratepayers, members of the public, rating and taxing authorities and the Government of Western Australia.
This document describes the legislative and policy foundation for determining the basis for rates. In particular, it sets out the policy that guides the Minister for Local Government’s exercise of the power to determine the method of valuation of
The second part of this document provides guidance for local governments in requesting such a determination. A streamlined process for recent residential subdivisions is also included which allows local governments to advise the Valuer-General if they
do not require unimproved valuations for newly created lots.
The Minister may determine the valuation method as either unimproved value (UV) or gross rental value (GRV) on the basis of predominant land use. As land use changes from predominantly rural to predominantly non-rural, or from predominantly non-rural
to predominantly rural, a new determination is necessary.
The Minister’s determination under section 6.28(1) will be made consistently with the key values of objectivity, fairness and equity, consistency, and transparency and administrative efficiency. To that end, the Minister will not determine a change
in the method of valuation on the basis of an application under this policy (the application) unless the Minister is satisfied of the following matters.
and was given at least 28 days after receiving that information to make a submission to the local government on whether the assessment of predominant use is correct.
The ratepayer’s submissions, if any, and the local government’s response to each ratepayer’s submission (as recorded in the minutes of the council meeting at which the response was adopted) have been provided to the Minister.
The guidance below is directed to an application for approval under section 6.28(1) for the determination of the method of valuation of land to be used by a local government as the basis for rating.
The policy section of this document identifies the matters on which the Minister will want to be satisfied before he or she approves an application.
Before making an application, a local government should be satisfied that:
The starting point for a local government will be the matters identified under the key values of objectivity and consistency. The local government will need to ensure that all of the matters identified under those key values are addressed.
Once the local government is satisfied that it has addressed all the matters identified under the key values of objectivity and consistency, the local government will need to address the key value of fairness and equity. This includes the requirement
for the local government to consult directly with affected ratepayers.
Once the local government has consulted the affected ratepayers, and received any submissions from ratepayers, the council of the local government will need to consider:
Even if the council has previously considered the matter, the council must consider the submissions and the other information and resolve to make the application to the Minister.
Once the council has resolved to make the application, the following should be sent to the Minister:
The Minister will then consider the application and may request more information from the local government before granting approval.
Properties that are not rateable should not be included in an application for conversion to gross rental value. The reason for this is because it overstates the revenue capacity of a local government which may impact the perceived revenue capacity when
evaluated by the WA Grants Commission.
The ratepayer should respond constructively during the consultation phase and assist by returning the land use declaration form to assist with determining the predominant use of land.
The ratepayer should form a view as to whether the matters set out under the key values have been correctly addressed.
If the ratepayer considers that these matters have not been correctly addressed, the ratepayer should set out why they hold this view in their submission to the local government.
In their submission, the ratepayer should address any other matter which they wish the local government and the Minister (if applicable) to consider.
In considering an application, the Minister may request information from the ratepayer before making their decision.
This section applies to applications to change the method of valuation for a recent residential subdivision. A recent residential subdivision is one where the Western Australian Planning Commission has approved the deposited plan in the previous
To simplify the process for these subdivisions, the following steps have been introduced:
For this process to apply, the Western Australian Planning Commission must have approved and sent the deposited plan to rating authorities, which indicates that all requirements for the subdivision have been met. It is then the responsibility of the local
government to notify the Valuer-General if they do not require unimproved valuations for the new lots.
Any portion of the land which is allocated for future subdivisions will not be approved until such time as an approved deposited plan is received.
In addition, the local government must have no requirement for interim unimproved valuations for the newly created lots.
A separate application form is provided for these applications.
Please send your completed application form and relevant attachments to:
Executive Director Local GovernmentDepartment of Local Government, Sport and Cultural IndustriesPO Box 8349, Perth Business Centre WA 6849
Or email firstname.lastname@example.org
Department of Local Government, Sport and Cultural IndustriesGordon Stephenson House, 140 William Street, Perth WA 6000GPO Box R1250, Perth WA 6844Telephone 61 8 6552 1530 Facsimile 61 8 6552 1555Freecall 1800 620 511 (country only)Email email@example.comTranslating and Interpreting Service (TIS) telephone 13 14 50
Do not submit enquiries with this form.