Rating Strategies

Introduction

No one likes to pay rates, but they are a necessary feature of modern day economies. A good rating system is one that is fair, easy to understand, and efficient to administer.  Unfortunately, the fairer the rating system, the more complicated and inefficient it becomes. The property-based system of local government rating in Australia is not perfect and has copped its fair share of criticism. However, despite a number of world-wide reviews of property rating systems, no government has been able to come up with anything better.

What is a Rating Strategy?

Rating Strategies are generally concerned with how councils apportion their required rate revenue over different classes of property. They are generally not concerned with how much the Council levies in rates in total, but how that total amount is distributed to rateable properties. The can be a useful tool in achieving equity in the rating system, and to encourage or discourage particular uses of land. Each year, councils across Australia are required to set the level of rates applicable to each property type. Preparing a Rating Strategy is a time-consuming and at times, difficult exercise that usually involves community engagement and input. For this reason, Rating Strategies are generally undertaken every four or five years.

Our Approach

Miller Consult has the technical and political expertise to support your council with a new Rating Strategy or a review of the existing one. Our approach to preparing Rating Strategies is to:

  • Review your existing rating system;
  • Explore ways for the rating system to meet Council’s economic, social and environmental objectives;
  • Research the capacity of classes of property owners to pay rates;
  • Identify new rating differentials that could be applied to different classes of property;
  • Identify opportunities to levy new rates and charges under the relevant Local Government Act;
  • Support Council with its community engagement and consultation;
  • Undertake analysis of different rating scenarios and their impact on individual properties.