Rating Structure
The total income that can be raised from levying rates on property is capped by the State Government via the Independent Pricing and Regulatory Tribunal (IPART). IPART have determined that Warringah Council may increase general income from rates by a maximum of 3.0% in 2015/16. The increase consists of the 2.4% allowed to all NSW councils plus 0.6% for Council to maintain current service levels and financial sustainability.
The current rate structure will be maintained, rate assessments will be based entirely upon property valuations (ad valorem) but with minimum rates applying where appropriate.
For rating purposes, land in Warringah is categorised as residential or business. The business category has a further sub-category – Warringah Mall Regional Shopping Centre Sub-Category. Properties covered by the Warringah Mall Regional Shopping Centre Sub-Category are shown in this map:
Council has received requests from a number of owners of strata storage units for a revision of Council’s rating structure in relation to strata storage units. A strata storage unit refers to geographically separate complexes of strata storage facilities that are predominantly being used for private and domestic storage purposes. In accordance with Section 518 of the Local Government Act 1993 (the Act) strata storage units are categorised as Business for rating purposes as they cannot be classified in any of the other rating categories (farmland, residential or mining). As there is currently no sub-category for strata storage units they are all subject to the minimum business rate. This results in strata storage unit ratepayers incurring proportionately higher rates compared to both ratepayers on the residential minimum and other ratepayers in the business category, given that they are small in size, have a relatively low land value and generally do not place a high demand on Council services.
As part of the public exhibition of the draft Delivery Program 2015-2019, Operational Plan and Budget 2015/16 and Long Term Financial Plan 2015-2025 Council will seek submissions regarding its rating structure and whether it is appropriate to create a further sub-category for strata storage units under the Business Category.
Accordingly, two tables have been provided below which show:
- the ad valorem rate, the minimum rate and anticipated revenue for residential, business and business subcategories based on the current rating structure
- the ad valorem rate, the minimum rate and anticipated revenue for residential, business and business subcategories based on creating a further sub-category for strata storage units under the Business Category
The ad valorem rate, the minimum rate and anticipated revenue for residential, business and business subcategories are as follows: