How we calculate rates

Rates are our primary source of income, and we are legislated in the way we calculate Ordinary Rates.  

First your property is categorised for a rating purpose according to its primary use as either:

  • Residential
  • Business
  • Farmland
  • Mining

The category for your property is identified on your annual Rates and Charges Notice.

Once your property is categorised two components make up the total Ordinary Rate. For those properties categorised as Residential or Farmland:

  1. A base rate that is the same for all property within a particular category and which is considered to be a fair and reasonable contribution toward the provision of services. 
  2. An Ad Valorem rate that is calculated according to value of your land, which is revised and determined by Land and Property NSW every three years. The Ad Valorem rate is calculated by way of a rate per dollar of land value.

For those properties categorised as business the rate is calculated using Ad Valorem only with a minimum cap applied. That is, if the rate per dollar of land value falls below the minimum rate, the minimum rate will apply. 

Because of the way Rates are calculated when land values fluctuate, Rates will also change as a result.  

Any objections to the land value determined by the Valuer General should be referred to Land and Property NSW. The most recent revision of land values was undertaken in July 2013.

On your annual Rates and Charges Notice you may also notice a Stormwater levy and a Domestic Waste Service charge where applicable, all of which are regulated by the  State Government.