Rates confusion as land values fall

Published on 28 August 2020

A drop in overall land value right across the city has left people wondering why their rates have gone up despite the value of their land going down.

Council collects around $16 million in rates each year, and land value is used to determine how much each ratepayer contributes to that $16m total.

Land value is determined by the Valuer General every three years, and those with high land value relative to other property in town contribute more to the rates total, while those with low land value relative to other property in town contribute less.

Council's Chief Financial Officer, Jay Nankivell, said the general drop in land value across Broken Hill had led to a confusing situation when it comes to rates.

"Unfortunately this year a reduction in your land value doesn't necessarily mean a reduction in land rates, because land value generally decreased right across the board" he said.

"Your land value may have decreased, but so has almost everyone else's, so the rates therefore stay the same or even increase.

"It's important to remember that everyone's contribution to rates is not based on land value alone, but the land value relative to other properties in the city.

"A rule of thumb this year is that if your land value didn’t reduce by more than 11%, expect an increase in rates above the rate peg of 2.6%.

"We know some people find this confusing, annoying, or unfair, however land value is not controlled by Council."

Rates notices went out to local households in July, along with a voucher for five free trips to the waste facility.

Council is aware that some residents who own multiple properties may have only received one waste voucher. Those who have been affected by this error are encouraged to contact Council's front office on 8080 3300 to get additional vouchers printed.