Information about rates

To share the total cost of services fairly across the community, councils use official property valuations as the basis for levying rates. The Local Government Act states the value of the land is an indicator of the ratepayer's capacity to pay rates. These valuations are not set by your local council.

Every six years all properties in Tasmania are valued by the independent Office of the Valuer-General.

Under the Local Government Act, councils can choose to base their rates on one of three valuation methods:

1. Land value: The value of the land only, not including any buildings or improvements.
2. Capital value (CV): The estimated value of a property if it were sold on the open market. It includes the land and all buildings.
3. Assessed annual value (AAV): This is the estimated amount of rent a property could earn in a year.

Council rates are a property tax that provide the essential funding for the wide range of services and infrastructure a council provides to its entire community.

This covers most of the local services and infrastructure a council provides, such as:

• maintaining local roads, footpaths and street lighting
• managing parks, sports grounds and public swimming pools
• providing community services like halls
• operating planning and public health services.

The Local Government Act specifies rates are a tax, not a fee for a service. This is the same principle as the income tax you pay to the Australian Government. Just as your income tax is pooled to pay for services for the whole country (like defence and highways), your council rates are pooled to pay for services for the benefit of your whole local community.

This means your rates are not reduced if you do not personally use a particular service, like a local sports ground or a swimming pool. Just as you cannot ask for a refund on your income tax because you have not used a particular service.

To ensure transparency, every council is required to adopt and make public a rates and charges policy. The policy outlines the process the council will apply when making its rating decisions, and it must take into account the principle that rates are a tax. You can usually find this policy on your local council's website.

The primary mechanism for calculating a rates bill is the general rate, which each council makes for the financial year. The general rate is applied to the value of a property to determine each owner's share of the total rate revenue the council needs to collect.

To provide flexibility in how this cost is shared, the Local Government Act allows the general rate to have two components:

1. A value-based component: This is the part calculated by applying the "rate in the dollar" to the property's valuation.
2. A fixed charge: A council can also include a fixed charge that applies equally to every rateable property, regardless of its value.

This two-part structure allows a council to balance the amount paid based on property value with a standard charge for services that benefit all properties. Councils can also set a minimum amount payable for the general rate to ensure all properties contribute a base amount towards council services.

What about my rates notice?

If you own a property, each year your council will send you a rates notice, which is your official bill. The Local Government Act specifies this notice must include all the key information about the rates payable, the basis for their calculation and the due dates for payment.

If you believe there is an error (for example, the amount is calculated incorrectly or you are not liable for the payment), you have the right to lodge a formal objection in writing to the council's general manager within 28 days of receiving the notice. If the matter is not resolved to your satisfaction, you may then have the right to appeal to the Tasmanian Civil and Administrative Tribunal.

The Local Government Act allows councils to apply different rates to different categories of property. This is known as differential rating. For example, a council might set a different rate in the dollar for commercial or industrial properties than for residential homes. This reflects how the different property types use or benefit from council services.

The Tasmanian Government's role is to set and administer the statewide legal framework for rates and charges under the Local Government Act.

A key focus for the Tasmanian Government is improving the transparency of council decisions. As part of the Local Government Priority Reform Program 2024-26, the government is developing new minimum requirements for the information that must be included in rates notices. This reform aims to help communities better understand their council’s rating practices and financial management decisions.

For more information go to improving the local government system.

Does Tasmania have rate capping?

No. Unlike some other states, Tasmania does not cap the rates councils can charge. Councils have the flexibility to determine their own rates based on their financial requirements and the needs of their diverse communities.

Where can I find my property valuation?

For information about your property's valuation, go to the Office of the Valuer-General website.

Who can I talk to about my rates?

Contact your local council if you have queries about your rates notice or your council's rating decisions. You can find your council's website in the Tasmanian council directory.