MidCoast Council ratepayers have experienced some changes with their rates notices this year due to the final stage of a rates harmonisation program that has been underway for the past four years.
As part of the harmonisation some residents may have noticed a change to the rates category of their land.
In particular some residents now have a classification of residential, where they were previously categorised as residential – rural, or rural – residential depending on which former Council area their property is located.
This does not have any impact on the use of the land as a rating category does not relate to a land use category (for planning or development purposes).
The Local Government Act 1993 does require all land to be categorised. There are only four primary categories land can be categorised in for rating purposes – farmland, residential, business and mining. Any further categorisation is a sub-category such as ‘Residential – Rural’.
In 2020-21 MidCoast Council was required to start a progress of ‘harmonising’ rates – and rating categories – across the council area. There has previously been three different rating structures in place under the former Greater Taree, Great Lakes and Gloucester councils.
The rating category relates to the what the land is currently used for. For example, if the primary use is business it will be rated as business. If the primary use is residential, it will be rated as residential.
Residential properties in a main urban area such as Taree are rated as ‘residential – Taree’.
Land used for residential purposes outside the main urban areas remain in the residential category without any sub-category. Previously some land was called ‘residential – rural’.
Importantly the change in sub-category does not change how rates are levied. The amount of rates collected from the former ‘residential- rural’ category remains the same.
It does not change what the land can be used for and it does not change how land is valued.
