Learn how rates are calculated and what rates are used for.
What rates are used for
Every year, local governments in Western Australia create a budget, approved by their councils, to finance various community services and infrastructure projects. These include, but are not limited to, road maintenance, public libraries, parks, and waste management, all crucial for supporting the community's well-being and growth.
The Annual Budget incorporates various revenue sources like grants, subsidies, and fees. To address any funding shortfalls, local governments impose rates on rateable land.
View the City’s 2024-25 Annual Budget below.
How rates are calculated
Under the Local Government Act 1995, local governments can apply rates either uniformly across all ratepayers or differentially based on land categories (e.g., residential, commercial, industrial). The City of Joondalup has adopted differential rating since 2008-09. This rating system was also applied to the 2024-25 period.
The formula for calculating property rates is: property valuation X the rate-in-the-dollar.
The valuation is determined externally by the Valuer General, using either:
- Unimproved Value: Established by reference to the land market and is generally only used in rural and semi-rural fringe urban areas; or
- Gross Rental Value (GRV): Refers to the gross annual rental that the land might reasonably be expected to raise if the property was rented. For vacant land, where no rental value can be determined, the GRV is calculated on the basis of 3 per cent of its capital (or resale value) for residential properties and 5 per cent for commercial and industrial properties.
In the City of Joondalup, most properties are assessed on their GRV, which is indicated on the annual Rates Notice.
The rate-in-the-dollar is set by each local government and is determined by the rates revenue required in the Annual Budget. Local governments can choose to set these rates either:
- Uniformly: the same rate for all properties; or
- Differentially: varying rates based on defined property categories.
Rating can be differentiated by:
- The purpose for which the land is zoned.
- The purpose for which the land is held or used.
- Whether or not the land is vacant.
- A combination of the above.
Local governments can also set a differential minimum payment each year. The purpose of a minimum payment is to ensure that all ratepayers contribute a base or minimum amount as rates.
The City of Joondalup has adopted a differential rating system since 2008-09.
A differential rate-in-the-dollar has been adopted for all rateable land within the City according to the predominant purpose for which that land is being held or used, and whether or not the land has any improvements. Properties valued using GRV have been categorised as either:
- Residential: Covering all properties used predominantly as single or multiple dwellings
- Commercial: Covering all properties used for business and commercial purposes; or
- Industrial: Covering all properties engaged in light industrial and/or manufacturing activities.
Properties have then been further categorised as either:
- Improved e.g. a building has been added; or
- Vacant.
The difference in rate charges for vacant land is to ensure that income is obtained fairly from vacant land, to incentivise development of the land and to discourage land banking for future sale.
Commercial and industrial sectors generate higher traffic volumes and heavier loads, which is recognised in the differential rate applied.
Rural areas have much lower rates than residential or commercial properties because these rates are calculated using the unimproved values.
Table 1: General Rate - Gross Rental Value (GRV)
| Category of property | Cents in the dollar | Minimum payment |
|---|---|---|
| Residential Improved | 5.4781¢ | $899 |
| Residential Vacant | 10.6461¢ | $982 |
| Commercial Improved | 7.2023¢ | $982 |
| Commercial Vacant | 10.6461¢ | $982 |
| Industrial Improved | 6.5261¢ | $982 |
| Industrial Vacant | 10.6461¢ | $982 |
Table 2: General Rate - Unimproved Value
| Category of property | Cents in the dollar | Minimum payment |
|---|---|---|
| Residential | 1.0966¢ | $961 |
| Rural | 1.0948¢ | $961 |
Overview of yearly rates and charges
Your yearly rates and charges are detailed on your Rates Notice and can include various components. Here's a breakdown of what you might find:
This describes the rate level applied to the property and the corresponding amount levied.
This charge covers the provision of waste services, including collection of household and recycling bins, bulk waste collection, and provision of green waste tip passes. The refuse charge for the 2024-25 year is $375.
In accordance with statutory requirements, all properties with pools require a pool/spa safety barrier inspection undertaken by the City once every four years, although the fee is paid annually. The charge for the 2024-25 year is $47.
Remember to notify the City if you've removed or decommissioned a pool at your property.
Learn more about pool/spa safety barrier requirements and decommissioning pools.
This levy is applied to all property owners in Western Australia by the State Government to fund fire and emergency services in the region. The City is required to collect this levy on behalf of the State Government's Department of Fire and Emergency Services (DFES). Find out more about the Emergency Services Levy on the DFES website.
If you own property in Harbour Rise, Iluka, Woodvale Waters, or "new" Burns Beach, you'll be subject to a Specified Area Rate. This additional rate levied is used for enhanced landscaping and park services in these particular areas. Specified Area Rates are charged at a separate rate in the dollar and shown as an additional item on the rates notice.
The same GRV used to calculate general rates is applied to calculate the specified area rate.
The City is required to use the money from Specified Area Rates for the purpose for which the rate is imposed and in the financial year in which it is imposed.
View the City’s Specified Area Rate Policy (PDF) for more detailed information on how specified area rates are determined and used.
Minimum payments are set in recognition that every property receives some minimum level of benefit from works, services and facilities provided to the community. In any year, if the calculation of GRV x rate in the dollar for a property is less than the minimum payment prescribed, the latter will be applied as the rate levied for that property. The minimum payment applicable for 2024-25 is $899 for Residential Improved properties and $982 for other property types.
An instalment administration charge of $12/instalment is charged based on each instalment notice issued. This applies if you choose to pay your rates notice by instalments.
Penalty interest is charged for late payments in accordance with the Local Government (Financial Management) Regulations 1996.
The City charges penalty interest of 3% per annum for rates and charges, and 11% per annum for the Emergency Services Levy on outstanding rates not being paid in instalments or on amounts which remain unpaid after the due date of the instalment until the instalment is paid.
More information and contact
For further details and support, visit our Rates FAQs page, call 9400 4000 to speak with the Rating Services Team, or via rates@joondalup.wa.gov.au.