FAQs

Rates are a tax levied on all rateable properties within the boundaries of the Shire of Serpentine Jarrahdale Municipality in accordance with the Local Government Act 1995. 

The overall objective of the proposed rates in the 2021/2022 Budget is to provide for the net funding requirements of the Shire’s services, activities, financing costs and the current and future capital requirements of the Shire, after taking into account all other forms of revenue. 

In Western Australia, land is valued by Landgate Valuation Services (Valuer General’s Office - a State Government agency) and those valuations are forwarded to each Local Government. 

Two types of values are calculated - Gross Rental Value (GRV) which applies to non-rural land; and Unimproved Value (UV) which generally applies to rural land.

The following are the proposed Differential General Rates and Minimum Payments for the Shire of Serpentine Jarrahdale for the 2021/2022 financial year, to be effective from 1 July 2021.

The Shire continues to look for ways to achieve fair rates for all in the Shire and this rating strategy has been designed to address funding requirements in an equitable way.

The above rate model will yield $25,060,988 in net rate revenue, which is a 1.85% increase on current year to date base rate calculations.

The proposed Rating Strategy includes:

• GRV Residential Rate be reduced to slightly less than the current equivalent rate for the City of Armadale.
• The re-introduction of a Rural Residential UV rating category for rural properties 4,000sqm to 50,000sqm to be 5% higher than the base UV rate and a minimum rate of $1,750. For context, the average residential GRV rate excluding those on a minimum rate is $1,764.
• The introduction of a Commercial/Industrial UV category with a rate 50% higher than the base UV rate for rural properties used predominantly for commercial/industrial purposes.

Of 12,395 properties within the Shire, these changes will deliver a small reduction in rates for 8,236 and no change to 1,148 properties.

The remaining 3,011 properties will see an average increase of $297 as the Shire moves to address its funding requirements in an equitable way.

The draft 2021/2022 Budget has been developed using the following principles discussed and agreed with Elected Members at budget workshops:

• Focus on long-term financial sustainability of the Shire;
• Capacity building to manage the Shire’s growth; and
• Funding the Shire’s financial requirements in an equitable way.

Please refer to our Statement of Rating Objectives and Reasons (hyperlink to document) which outlines the objective for each rating category and the reason.

During 2020 the Shire of Serpentine Jarrahdale conducted a review into fair rating within the municipality.

In December 2020, Council determined to discontinue the review at the request of the Minister for Local Government.

While the Rating Equity project has discontinued, a review has found that over 2,300 properties within the Shire are being used predominantly for residential, commercial or industrial purposes but the Shire is rating them as though they were being used for rural purposes.

Equity is an important concept in taxation, and the Department of Local Governments Guidelines on Changing Rating Methodology states that rating principles should be applied fairly and equitably. 

Each property should make a fair contribution to rates based on a method of valuation that appropriately reflects “predominant use”.

The Shire is required to, in accordance with Section 6.36 of the Local Government Act 1995, give notice of certain rates and invite submissions for a period of 21 days.

The public comment period for the Shire’s Differential General Rates and the Minimum Payments Statement of Objects and Reasons is from Wednesday, 23 June until 5pm, Friday 16 July. It will be advertised by the following methods:

• Letter to all Shire ratepayers 
• Public Notice 
• Your Say SJ webpage 
• Your Say SJ eNewsletter 
• Shire website
• Social media 

Submission received will be reviewed and considered by Shire officers. All submissions will be included as an attachment in a future report to Council where they will consider the draft 2021/22 Budget.