Rates harmonisation FAQs
Why is Inner West Council harmonising rates?
The NSW Government requires all amalgamated councils to have one harmonised rates system. Inner West commenced this process in 2021 by harmonising the minimum amount charged for rates, which applied to about 38% of all properties across the Local Government Area (approximately 30,000 properties).
From 1 July 2023 Inner West Council’s rates have been 100% harmonised. This ensures that ratepayers across the entire Local Government Area are all charged rates fairly and equitably based on their own property values and will pay the same rates as other properties with the same land value. While Council does not increase its overall rates income through the rates harmonisation process, some individual’s rates will change as the cost is redistributed amongst ratepayers.
Is Inner West Council collecting more money from rates harmonisation?
No, rates harmonisation does not mean that Council collects more money in total rates - instead rates are redistributed across all ratepayers.
Residents will now pay the same rates for properties with the same land value across the entire Local Government Area.
In fact, we were able to absorb the impact of losing $1.5 million annual income from the former Marrickville Special Rate Variation that expired in June 2020 through prudent financial management. We have also recently purchased two commercial investment properties that together generate over $4.5 million in revenue that would otherwise need to be generated through rates income.
Inner West Council has achieved savings of $22 million since amalgamation in 2016 and we continue to improve our financial performance.
Why has the Land Value increased, and can I appeal it?
Every 3 years, the Valuer General updates land valuations for all Councils. Council has no role in the valuation of land by the NSW Government.
For more information on that process please see their website below. It contains information on how land valuations are calculated, resources and contacts if you are concerned about your land valuation, as well as the process for landholders to lodge an objection.
Alternatively you can call 1800 110 038 to discuss your concerns directly with the Valuer General’s Office.
Find more information about land values
Why have my rates decreased?
The NSW Government requires all amalgamated councils to have one harmonised rates system. As a result, from 1 July 2023 Inner West Council’s rates have been 100% harmonised with a single rating structure replacing the three rating structures from the former Ashfield, Leichhardt and Marrickville councils.
The harmonisation process does not increase Council's overall income from rates – however, harmonisation means some individual ratepayers’ rates will change as the cost is redistributed amongst ratepayers. As a result , some annual rates have decreased so that they are now the same as other properties that have the same land value.
Harmonisation ensures that ratepayers across the entire Local Government Area are charged rates fairly and equitably based on their own property values.
Your rates have been calculated based on the rating category and the land value provided by the NSW Valuer General. The rate category is determined by the land use (residential or business).
Your rates this year are also subject to new land valuations that have been issued by the NSW Valuer General’s Office.
For more information on that process please visit the website below:
Find more information about land values
Why have my rates increased?
The NSW Government requires all amalgamated councils to have one harmonised rates system. As a result, from 1 July 2023 Inner West Council’s rates have been 100% harmonised with a single rating structure replacing the three rating structures from the former Ashfield, Leichhardt and Marrickville councils.
The harmonisation process does not increase Council's overall income from rates – however, harmonisation means some individual ratepayers’ rates will change as the cost is redistributed amongst ratepayers.
Harmonisation ensures that ratepayers across the entire Local Government Area are charged rates fairly and equitably based on their own property values, and will pay the same rates as other properties that have the same land value.
Your rates have been calculated based on the rating category and the land value provided by the NSW Valuer General. The rate category is determined by the land use (residential or business).
Your rates this year are also subject to new land valuations that have been issued by the NSW Valuer General’s Office. Property owners whose land values have increased may see a proportionate increase in their rates.
Find more information about land values
As a result of both of these, some annual rates have increased by more than the 3.7% rate peg statutory increase.
Are there alternative payment solutions if I can’t afford rates payments?
Yes, if you are experiencing hardship, staff will work with you to consider a suitable payment arrangement on a weekly, fortnightly or monthly basis.
To apply for special consideration please see the below link to Council’s web page to complete the rates hardship application.
Find more information about rates hardship consideration
Also, Eligible Pensioners may be able to request for rates and interest to accrue on their rate accounts for subsequent payment from their estate.
I’m a pensioner, does this impact me?
Eligible pensioners will continue to receive a $250 rate discount, with an extra rebate also available for pensioners who have owned and resided in a property in the Inner West LGA continuously for at least ten years.
Eligible Pensioners may also be able to request for rates and interest to accrue on their rate accounts for subsequent payment from their estate.
What is the rate peg?
The rate peg is the maximum percentage amount by which a council may increase its general income for the year. The rate peg is set each year by the Independent Pricing and Regulatory Tribunal NSW (IPART).
For this financial year 2023-24, the rate peg was set at 3.7%. Council’s rates income growth in any one year is limited to the rate peg, this means that the total rates income to Council this year will not increase by more than 3.7% compared to last year’s rates income.
If you still have questions about rates harmonisation, please reach out to us.
Contact Council