Government publishes Equitable Rating Guideline

Following sustained, vocal advocacy from the Property Council over a number of years, the Queensland Government has published a Guideline on equity and fairness in rating for Queensland local governments.

While non-statutory, the Guideline contains principles of equity and fairness, and is intended to promote best practice and greater consistency of rating practices across local governments in Queensland.

The principles contained within the Guideline are:

• Equity for like properties– parcels of similarly valued land used for the same or similar purposes, that receive similar services, should be levied similar general rates
• User pays– in some circumstances, specific users of services and facilities may be levied to help alleviate the costs of the service or facility, rather than funding it through general rates
• Meaningful contribution– local governments can use differential rating categories to ensure properties make a meaningful contribution to the rates collected- when setting a minimum rate, it must not remove the connection between the rates levied and the valuation of the land
• Predictability– there should be a reasonable level of predictability in the amount of rates levied on parcels of land, and where significant increases are proposed, ratepayers should be informed and consulted before rates notices are issued
• Fairness– local governments may grant concessions, however it must be done in a transparent and accountable manner and not unfairly result in a shift in responsibility for revenue-raising to other ratepayers.

The Property Council has previously provided Government with numerous case studies on unfair rating practices undertaken by local governments, many relating to commercial landholders being targeted to pay large increases, while general residential rate increases are kept to a minimum.

With the Guideline now in place, the industry will be in a stronger position to question and report on the fairness of the rating practices of local governments.

The Guideline on equity and fairness in rating for Queensland local governments can be accessed here.