Outcome of the Review of the Basis of Rating
A review of Council's Basis of Rating was undertaken in early 2025 by Council to ensure Council’s rating methodology and the distribution of rates across the community is equitable, effective and relevant.
The rating review process included the investigation of:
- the transition from a ‘Minimum Rate’ to a ‘Fixed Charge’ rating structure;
- adjustments to differential rating percentages;
- the imposition of a separate rate on properties within the Cape Jaffa Anchorage for the purpose of marina maintenance, and
- phasing in of changes to the rating structure through the application of rate capping.
Summary of submissions received
Council received 71 submissions during the community consultation process. Based on where the respondent’s own property, the chart below shows the breakdown of written submissions.
The table below summarises the responses provided to the review of the basis of rating:
The table below summaries the responses provided to the proposal of raising a separate rate on properties within the Cape Jaffa Anchorage, for the purposes of marina maintenance:
Council review of community feedback
All submissions received from the community were provided to Elected Members for review and were discussed at Council’s Information Briefing session on Tuesday, 22 April 2025. Submissions were also included in the Council agenda report for formal consideration at the 29 April 2025 Council meeting.
Transition from a ‘minimum rate’ to a ‘fixed charge’ rating structure:
Although submissions indicated a preference for retaining the current rating system, Council considered that this decision is likely to have been influenced by the secondary proposal to also introduce a separate rate for Cape Jaffa Anchorage properties, which if introduced, would have excluded Cape Jaffa Anchorage properties from capping provisions, and therefore resulting in substantial rate increases. On this basis, if Council had not proposed to introduce a separate rate for Cape Jaffa Anchorage properties in addition to the change of the basis of rating, many respondent’s views on the introduction of a fixed charge rating structure may have been different.
Feedback received also indicated that the amount of the proposed fixed charge, recommended in the consultation report, aiming to collect rate revenue of 40% from the fixed charge, was deemed too high. Council acknowledges this feedback and will consider the % fixed charge to be applied for the 2025-26 year through the Annual Business Plan and Budget process.
Differential Rating under a ‘fixed charge’ rating structure:
A strong theme through community feedback was for equitable treatment of all ratepayers. Council considers the fixed charge rating structure a more equitable rating system, where all ratepayers contribute once to the core services and facilities provided by Council which benefit all ratepayers, and no differential rates, therefore all ratepayers contribute to rates through the application of the same ‘rate in the dollar’, regardless of what the land is used for or where it is located. Council consider this system of rating to be fair and equitable on the basis that it demonstrates the principles of taxation, equity and simplicity, and considers benefits received.
Rating capping:
The rate model proposed through the consultation process included a rate capping provision of 15%, meaning that ratepayers would pay no more than 15% increase in rates, when compared to rates paid in the previous financial year. Feedback indicated that a rate cap of 15% was too high, especially for lower valued properties. The use of rate capping is deemed necessary and beneficial to smooth the transition to a new rating structure, however Council may consider a lower rate capping provision, ie 10% or 12% to reduce rate increases on lower valued properties, whilst balancing the impact of rate increases on all sectors of the community.
Introduction of a separate rate for Cape Jaffa Anchorage Marina Maintenance:
49 respondents opposed the introduction of a separate rate for properties within the Cape Jaffa Anchorage Marina, with justification including the benefit the marina provides to all of the community and visitors to the area and the tourism and economic benefits the facility generates. Many also regarded the introduction of a separate rate as ‘unfair’, by financially penalising a small group of ratepayers for past mismanagement of the marina, particularly in relation to the sand management.
In light of feedback received, Council considered deferring a decision on implementing a separate rate at Cape Jaffa, at least for the 2025/26 year. This will provide time for a new rating structure to be implemented without the compounding impact of a separate rate. Deferring a decision on a separate rate will also allow Council to continue canvassing State Government for financial assistance with sand management activities, advocate for potable water and a Community Wastewater Management System for Cape Jaffa, review potential land development proposals and opportunities and undertake an economic benefit study of the Cape Jaffa Anchorage.
Council Decision
Having considered community feedback and reflected on the financial impact on ratepayers, demonstrated through a range of rate modelling scenarios, at the Council meeting held on 29 April 2025, Council resolved to implement changes to its rating structure, effective 1 July 2025, as follows:
- Transition from a minimum rate to a fixed charge
- Not to utilise differential rating under the fixed charge model, effectively resetting differential rates for all land use codes to 100%
- Utilise rate capping to phase in changes to the new rating system, and
- Not to impose a separate rate related to marina maintenance for Cape Jaffa Anchorage properties for the 2025-26 year.