Review of the local government rating system

Review of the local government rating system The Independent Pricing and Regulatory Tribunal (IPART) has released its draft report on the review of the local government rating system.The main changes proposed include:Giving councils the option to use Capital Improved Value as an alternative to Unimproved Value as the basis for setting the variable amounts in rates.Allowing councils’ general income to grow as the communities they serve grow, as measured by the change in Capital Improved Value from new developments.Using the Capital Improved Value method as the basis for calculating the Emergency Services Property Levy, when Capital Improved Value data becomes available state wide.Providing councils with more flexibility to set different residential rates within their local area.Allowing councils to make new categories for environmental and vacant land, and new subcategories for business and farmland properties.Modifying rate exemptions so eligibility is based on land use rather than ownership.The Property Council supports the retention of unimproved land values as the basis for valuation. Collecting the data necessary to transition to a capital improved values system would incur unreasonable cost.If you would like to provide input into the Property Council’s submission please send your comments to [email protected] access the draft report click here.