Differential rates

The idea of a rating system is to allow Council to raise sufficient revenue to fund the services it provides year on year. In Western Australia, the basis of using property rental valuations has been found to be the most appropriate means of achieving rating equity. However, to achieve a wholly equitable ratings system for all properties, in all areas, is a difficult task if based on property values alone. For this reason the Local Government Act makes refinement options available such as differential rating.  

In simple terms, differential rates mean that there is a different rate for different property classifications e.g. residential, vacant and commercial/industrial.

In 2014 the Town introduced differential rating for the first time to help smooth the valuation fluctuations of the State Valuer’s General determining that residential property values had increased by 26% as opposed to commercial 16% and industrial 15%.

The following valuation rolls of 2017 & 2020 remained considerably disproportionate, and as the 2023 roll is released, the Town of Victoria Park will continue to use differential rates to maintain the closest rating equity we can achieve for the rate payers of the Town.