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:
- A value-based component: This is the part calculated by applying the "rate in the dollar" to the property's valuation.
- 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.
