Council’s Management Team – Suggest and Spend our Rates

There is a move by the NSW Government to change the way Council rates are levied,

Currently, rates are based on what is known as the unimproved capital value of the property. The new proposal would see rates levied on the capital improvement value (CIV or market value). This would mean that a more valuable property would be hit with higher rates.

There is no suggestion that the total cap on Council rates would be removed. So there would be winners and losers if the market value is used. Commercial premises, shopping centres and luxury homes would pay an increased amount. Small residential units and houses would likely pay less.

There are cases for an against the system of raising rates. Rates are used to provide services. So, some argue that those services such as waste collection, roads and footpaths costs the same if they are in front of a luxury house or not. That being the case, we should all pay the same.

Others argue that the more affluent in society should underwrite the costs of providing services thus providing financial relief to those with lower financial assets.

This debate has been ongoing for some years.

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