Rates FAQs

Council rates fund local essential services and infrastructure which benefits the whole community. This includes but is not limited to:

• Aged and disability services
• Arts, culture, community centres and libraries
• Child, youth and family care
• Community buildings
• Community grants
• Drainage and local roads
• Economic and business development initiatives
• Events and festivals
• Capital works, including new infrastructure, maintenance and redevelopment.

Your rates are based on two variables, the rate in the dollar, and the valuation of your property.

The formula for calculating rates is: Capital Improved Value (CIV) x Rate in the dollar = Rate payable

For example:

CIV of the residential property = $A

Rate in the dollar for residential properties = B cents

A x B = $the rates you pay 

The rate cap is announced by the Minister for Local Government in December of each year for the following financial year.

Councillors and officers review costs, expenditure and needs of Council and determine whether an application needs to be made to the Essential Services Commission to increase rates above the rate cap. Since the introduction in 2016, Council has not sought to increase rates above the rate cap. 

The rate increase is then applied to the previous year’s rates to determine the general rates for the new financial year. This is then divided by the combined value of all rateable properties to get the rate in the dollar as depicted in the image below. 

General rates are added to any municipal and garbage charges set by a council and the Fire Service Levy to determine the total rates payable on a property.

Rising property values usually result in the adjustment by Council of a lower rate in the dollar to offset the overall increase in property values.

Councils don't collect extra rate revenue as a result of a revaluation. A revaluation does not increase the total amount of money a Council collects in rates — it redistributes the amount of rates payable by individual properties. 

The municipal charge for 2021/2022 is $168.90. This flat charge is applied to each rateable property, irrespective of the valuation.

The levy of a municipal charge applies equally to all properties and is based upon the recovery of a fixed cost of providing administrative services irrespective of valuation. The same contribution amount per assessment to cover a portion of Councils administrative costs can be seen as an equitable method of recovering these costs. The flat charge per property is increased by the rate cap each year.  It is essentially a part of the rates however separately shown on the rates notice as not linked to the valuation and rate in $.  It accounts for $10.775m revenue.

Administrative costs to operate Council, including Asset Management, Information Systems, Corporate Records, Human Resources and Governance Services.

Municipal Charge increase annually at the same level of rate percentage increase.

Council applies a Waste Service charge based on full cost recovery of the waste service function.  Waste charges are set according to the size of the household waste, recycling and garden waste bins the ratepayers has selected for their property and cover the costs of garbage collection and fees set by landfill operators to dispose of household waste.  This is basically a fee for service and allows ratepayers to decide the bin size and purpose based on their needs.

Garbage was a 5.6 per cent increment (mainly due to the tripling of the State Government land fill levy)

Green waste 0 per cent increment

Because annual waste collection and disposal service costs have increased, as has the Victorian Government’s landfill levy for waste disposed at landfill sites.

The recycling costs have increased due to China announcing it will no longer accept imported recycling materials.

Please note:

• Garbage charges are not subject to rate capping.
• The waste charge is based on the size and type of bin.

Previous years and current years bin charges:

                                              2020-21                      2021/2022

Residential 120L bin          $399                           $421.30

Residential 80L bin            $317.70                     $335.50

Green Waste 240L             $150.20                     $150.20

On 1 July 2013, the Victorian Government introduced a property based levy to fund the Metropolitan Fire and Emergency Services Board (MFB) and the Country Fire Authority (CFA). This Fire Services Property Levy (FSL) replaces the previous insurance-based funding model as recommended by the Victorian Bushfires Royal Commission following on from the 2010 Black Saturday tragedy. The Fire Services Property Levy applies to all rate assessments property (land and buildings) and includes a fixed component as well as a variable charge assessed on the capital improved value (CIV) of the property. There are different levy rates depending on the location of the property and the property type.

The levy is collected by local Councils annually and if you are currently receiving a Pension Rebate for your Council Rates you will automatically receive a rebate forthe Fire Service Levy as determined by the State Government.

The FSL charges are State Government charges and are calculated and advised to all Councils on an annual basis.

Council is the collection agency on behalf of the State Government and all income raised from this Levy is passed to the Victorian Government.

A valuation is an assessment of the value of a property at a specific date (the current revaluation is based on the levels of property value as at 1 January 2021).

Valuations are conducted by a qualified valuer. The value of each property is based upon property sales, which have occurred around the date of valuation, the quality and condition of the property, taking into consideration any improvements. 

Summary of revaluation movements for 2021-22 compared to the previous year:

The Valuer-General Victoria is now responsible for the undertaking of valuations (for Council rates, fire services levy and land tax purposes) in Victoria. These valuations are now undertaken annually whereas previously they were undertaken every two years.

To more accurately reflect any recent change/trends in values. Centralising the valuation function with the Valuer-General also improves efficiency, consistency, transparency and cost effectiveness.

Revaluations do not increase or decrease Council’s overall total rates revenue. A revaluation simply re-distributes the amount each property contributes to Council’s overall rate income.

For example, if you live in Langwarrin South which experienced an increase in valuations of 6.73 per cent, compared with the municipal overall average of 3.75 per cent, there would be a larger shift in/increase in rates for these residents.

Conversely, if you live in Seaford which experienced an increase in valuations of 3.16 per cent, as this was less than the municipal overall average of 3.75 per cent, these ratepayers may experience a small increase or even a small decrease in their rates.

The revenue that Council needs for running the municipality is divided into the total assessed Capital Improved Valuation (CIV) of all rateable properties. This establishes a ‘rate in the dollar’ to be applied to each property.

The result of this could be that your CIV has decreased but the rate in the dollar has increased by a higher proportion. This will result in an overall increase in the rates for those properties.

Please note: Ensure you are not adding the Site Value and the Capital Improved Value together which is a common misconception.

The Valuation of Land Act 1960 states that the Valuer-General Victoria shall be the Valuation Authority for the State of Victoria.

The Act also states that there will be a revaluation all rateable properties within the municipality on a yearly cycle.  All properties in Victoria are revalued at the same date.

Revaluations ensure that both the Council and the Victorian Government recognise the changes that occur in the property market, both positive and negative, and that these changes are reflected in the level of rates or land tax a landowner will pay.

Increased property values do not increase the total amount of money a Council collects in rates — it redistributes the amount of rates paid between individual properties.

Some ratepayers will pay more and some will pay less, depending on the new value of their property relative to other properties in their municipality. The Council budget determines how much a council requires in rates to operate the municipality.

Yes. Information about lodging an objection is listed on the back of your rates notice. Objections need to be in writing and lodged with the Valuation Authority within two months of the issue date listed on your notice. For more information on Valuations and Objections please go to:

https://www.frankston.vic.gov.au/Your-Council/Rates/Valuations-and-Objections

Valuations are conducted on 1 January each year. These valuations are based on sales activity leading up to each new year.

If you disagree with your valuation you can lodge an objection within two months of the issue date listed on your notice. See back of notice for details. 

Each council’s rate base and financial requirements to fund new infrastructure projects, deliver services and maintain existing assets are different. Since the introduction of the rate cap in 2016, Council has increased its rates only by the rate cap imposed by the Minister of Local Government. Valuations also differ across suburbs within a municipality, and based on this, individual rates may differ.

This is the date the valuation is based on.  The current valuation figures are valued as at 1 January 2021 and become effective from 1 July 2021 for the 2021/2022 financial year.

This is the date the valuation was first used for rating purposes.

It is important to remember that even if the property market has changed, that doesn’t necessarily mean that your property valuation will reflect this change in the current year.

This is because rates notices are issued eight months after the valuation date (1 January) and while the market can change a lot during this time, your valuation is based on property sales leading up to the valuation date.

So if the property market prices change after 1 January in any year, this will have no impact on the property valuations that have already been made. This is consistent for all Victorian councils.

Rate capping was introduced by the State Government on 1st July 2016 which Council has complied with. The Minister for Local Government announces the rate cap in December for the following financial year. Rate capping limits the amount Councils may increase rates in a year, without seeking additional approvals. The Rate cap for 2021-2022 will be 1.5 per cent.  The 1.5 per cent per cent rate cap is applied to the total annualised rates income from the previous year (2020–2021), and is not the percentage increase for each individual rateable property.

In comparison, the previous Rate Caps (based on CPI) have been:

• 2017-2018    2.00%
• 2018-2019    2.25%
• 2019-2020    2.5%
• 2020-2021    2.00%
• 2021-2022    1.5%

Since the introduction of the rate cap in 2016, projected CPI has been used as the rate cap.

Council can apply to the State Government for an exception to the rate cap, however Council has met the mandated 1.5 per cent cap.

The Victorian Government has set the rate cap at 1.5 per cent – which Council has not exceeded.

Council’s rates for 2021-22 were increased in line with the State Government’s rate cap of 1.5% similar to that of neighbouring Councils.

Every Council has different budget requirements for capital works, proposed works and ongoing costs to maintain services across the municipality and as such the rate base for each Council is different.

The annual rates revaluation may have an effect on the overall percentage increase of your rates. This is due to either an increase or decrease in your property valuation when compared to the overall average increase of the municipality. 

If your property valuation increased and was greater than the municipal average then your rates may increase to a greater amount than the Rate Cap percentage, which is 1.5 per cent for 2020-2021. However, if your property valuation decreased, then your overall rates may be equal to the rate cap percentage.

It’s also important to note that rate capping only applies to the General Rate and the Municipal Charge. The rate cap does not apply to other charges such as Waste Bins. 

A list of payment options is available on the front of your annual notice and include the following:

• Online using Visa, Mastercard or direct debit at frankston.vic.gov.au
• Bpay. Contact your financial institution.
• By phone or Post Billpay phone 1300 721 138
• Centrepay – deducted from your Centrelink payment
• Email by attaching a cheque or money order and sending it to Frankston Council

Yes, one of our revenue officers can discuss an arrangement to pay (ATP) for those having difficulty paying their rates. It can be weekly, fortnightly or monthly.

Apply for an Arrangement to Pay

If you're experiencing financial difficulty or you don't believe you will be able to make your upcoming rates payment, you can apply for an Arrangement to Pay. An Arrangement to Pay is a mutually acceptable rates payment plan which allows you to make weekly, fortnightly or monthly repayments that suit your budget and ensure that your rates are paid by the end of the financial year.

Rate Relief Waiver

Eligible owner-occupiers can apply for a once-off $200 Hardship Rates Relief Waiver as part of Council’s COVID-19 Relief and Recovery Package.

For further information please visit our Financial Hardship page or call 1300 322 322. 

Apply for an Arrangement to Pay 

If you're experiencing financial difficulty or you don't believe you will be able to make your upcoming rates payment, you can apply for an Arrangement to Pay. An Arrangement to Pay is a mutually acceptable rates payment plan which allows you to make weekly, fortnightly or monthly repayments that suit your budget and ensure that your rates are paid by the end of the financial year.

Rate Relief Waiver

Eligible owner-occupiers can apply for a once-off $200 Job Seeker Rates Relief Waiver as part of Council’s COVID-19 Relief and Recovery Package.

For further information please visit our Financial Hardship page.