Rates Review - Brochure - City of Monash

To find out more How Rates Are Calculated based on 2009/10
Council is conducting information sessions at the Rate Notice
following locations:
To calculate an approximate rate under the options
• Mulgrave Community Centre
Wellington Rd, Mulgrave
on 10 August at 7pm
being considered multiply the ‘Rate in Dollar’ with
the Site Value (SV) and Capital Improved Value
(CIV) on your 09/10 Rate Notice.
outline
CITY OF
M O N A S H
• Monash Civic Centre
293 Springvale Rd, Glen Waverley
on 12 August at 7pm
• Oakleigh Seminar & Training Centre
Atherton Rd, Oakleigh
on 13 August at 7pm
• Mt Waverley Community Centre
Miller Cres, Mount Waverley
on 17 August at 7pm
• Monash Civic Centre
(for commercial & industrial ratepayers)
on 20 August at 7pm
• Oakleigh Seminar & Training Centre
(for commercial & industrial ratepayers)
on 24 August at 7pm
There will be regular updates in the Monash
Bulletin and on Council’s website over the
coming months.
Subject to the outcome of the information
sessions and community consultation in August,
a formal process for consultation may follow in
October if Council decides to make a change to
the rating system.
Any change adopted by the Council would be
reflected in the rates for the 2010/2011 rating year.
For further information please:
• Phone the Rates Info Hotline on 1 300 538 892
• To express your view write to us at
PO Box 1, Glen Waverley, VIC 3150 or
• ‘Have Your Say’ on www.monash.vic.gov.au
Eg. A property with a SV of $354,000 and CIV of
$500,000
Option Rate in Dollar* SV or CIV Est.Rates
1 - SV 0.002828 X $354,000 = $1,001.10
2 - CIV 0.001771 X $500,000 = $885.50
3 - CIV with Differentials (150% of CIV) rate on Commercial /
Industrial properties
Residential 0.001605 X $500,000 = $802.50
Commercial
/Industrial 0.002657 X $500,000 = $1,328.50
*Rate in dollar figures for Option 2 & 3 are estimates only.
NB. Actual rates will change for 2010/11 due to the biannual
revaluation of properties
Rates Info Hotline
1 300 538 892
www.monash.vic.gov.au
mail@monash.vic.gov.au
Monash Civic Centre
293 Springvale Rd,
Glen Waverley, 3150
Hours: 8:30am to 5pm
Monday - Friday
Monash Language
Assist Directory
Fax: 9518 3444
TTY: (Hearing impaired)
9518 3655 Other
languages
Monash is considering
options to change the
way your rates are
calculated
What options are being considered?
Council is currently reviewing the way we
calculate rates within the City of Monash from the
2010/11 financial year.
Currently properties are rated based on the Site
Value (SV) of the property.
Options to change to Capital Improved
Value (CIV) are being considered to create a
fairer rating system whereby at least 63% of
residential ratepayers would pay less rates,
37% would pay more.

The rating options being considered
1. Site Value (SV) calculates your rates based on
the land value.
2. Capital Improved Value (CIV) calculates rates
on the total value of the property including all land,
buildings and improvements.
3. CIV with Differentials (150% of CIV) allows for
various levels of rates for different property categories
eg. residential, commercial and industrial.
For example, on the right are four
identical blocks of 800 sq/m land in
a street.
Under Site Value, all of these
properties pay identical rates.
Under Capital Improved Value,
rates will be payable relative to the level
of improvement to the property
These illustrations are examples only
Site Value does not reflect the property owner’s
capacity to pay rates.
Capital Improved Value more closely reflects the
capacity to pay, 60% of ratepayers would pay less
rates, 40% would pay more.
Under CIV with Differential (150% of CIV) on
commercial/industrial properties, 74% of mainly
residential ratepayers would pay less rates, 26%
would pay more.
Three-bedroom house
SV value $354,000 CIV value $500,000
Rates SV $1,001
Rates CIV $885
Rates CIV + Diff
(150%) $802
Four storey block with 12 units
SV value $354,000 CIV value $250,000 per unit
Rates per unit SV $83
Rates per unit CIV $443
Rates per unit CIV + Diff
(150%) $401
New four-bedroom + study house
SV value $354,000 CIV value $700,000
Rates SV $1,001
Rates CIV $1,240
Rates CIV + Diff
(150%) $1,123
Medical clinic with high income
SV value $354,000 CIV value $1,000,000
Rates SV $1,001
Rates CIV $1,771
Rates CIV + Diff
(150%) $2,657
Frequently Asked Questions
Why is Council looking at changing its
rating strategy?
To ensure we have a fair rating system for all
ratepayers.
There are currently many inequities in the rating
system that can be demonstrated by looking at
the rates paid by a single dwelling compared to
a multi-dwelling (block of units), a commercial
property or a significantly improved property.
Will this mean Council will collect more
rates?
A change to CIV will not collect more rates. Any
change would redistribute the total amount of
rates collected in a different way.
Who will be worse off by a change to CIV?
Those properties with a higher level of capital
improvement on their land eg. commercial,
industrial and high value residential.
Currently the commercial and industrial sectors
enjoy especially low rates in comparison to the
residential sector and other municipalities. They
can also claim rates as a tax expense, while
residential ratepayers cannot.
How will Pensioners be affected?
75% of pensioners would pay less rates, 25%
would pay more, with a change to a uniform
CIV rate.
As part of this review process, Council is
considering a further pensioner rebate of either $50
or $100 in addition to the State Government rebate.