FAQs

Local council rates are an annual taxation on wealth that is calculated on a property's estimated value.

They are collected by all Local Government Authorities (LGAs) in Australia to pay for critical infrastructure and the provision of services to the community that reside within their geographic boundary.

Unlike income tax collected by the Federal Government, local council rates apply only to property ownership and are not income based.

In Western Australia, the Valuation of Land Act 1978 empowers the Valuer General (VG) to conduct general valuations at such times and frequency as is considered necessary.

The VG delegates the administrative and operational aspects of the evaluations to Landgate.

Landgate is the statutory authority responsible for WA’s land and property information.

It maintains the official register of land ownership, issues certificates of title, provides independent property valuations, and maps geographical data for the state.

Landgate values properties using two primary valuation methods.

Gross Rental Value (GRV): This estimates the gross annual rental your property could earn. It is generally used for residential, commercial, and mixed-use properties. In the metropolitan area, this is reassessed every three years.

In the Shire of Capel this includes:

• Residential properties (dwellings)
• Urban development
• Mixed Use Residential (MUR)
• Home-based businesses
• Short-term rental accommodation (STRA)
• Commercial
• Service Commercial
• District Centres
• Light Industry (specific zoned areas)
• MUR-Commercial Use
• Vacant Land
• Rural Residential

Unimproved Value (UV): This measures the value of the land only, excluding any buildings. It is typically applied to rural and pastoral land.

In the Shire of Capel this includes:

• Rural
• General Industry
• Reserved Land

The value of rates payable by a ratepayer in the Shire of Capel is determined by four factors:

1. The method of valuation applicable to their property, being either GROSS RENTAL VALUE (GRV) or UNIMPROVED VALUE (UV).
2. The dollar amount of the valuation.
3. The DIFFERENTIAL RATING CATEGORY of the property.
4. The RATE IN THE DOLLAR or MINIMUM PAYMENT of that differential rating category.

Valuations are provided by the Valuer General (Landgate) in accordance with the Valuation of Land Act 1978.

Sometimes in extenuating circumstances, Landgate will value a property using an Interim Valuation.

Interim Valuations: Properties that undergo significant changes, such as new subdivisions or major renovations, are valued on an interim basis outside of these regular cycles.

Landgate values GRV properties every 3-5 years and UV properties annually.

Landgate undertook its last review of GRV valuation as at 01 August 2023. These values became effective 01 July 2024. 

The next GRV valuation is due to occur on or after 01 August 2027.

Landgate undertook its last review of UV valuations 01 August 2025 with these valuations proposed to take effect on 01 July 2026.

The rate in the dollar is a specific decimal value set by Council to each Zone and Rate Group multiplied by your property's valuation or the minimum rate payable.

It is essentially the tax rate expressed as cents per dollar of property value.

Council sets the rate in the dollar which is then applied to your property's valuation to determine the rates applicable to your property.

The rate in the dollar can differ across property zones, the applicable property value method (GRV or UV) and differential rates.

Differential rates refers to the concept of charging amended or different rates in the dollar to different categories of property.

Instead of charging every property owner the same rate in the dollar, categories of land have a different rate applied.

Differential rating is allowed under the Local Government Act 1995 and is used to reflect the differences in land use, service levels, or the capacity of different property types to contribute to council revenue; as different property types benefit differently from local services and have differing valuations.

The UV valuation method is used on rural, general industry, agriculture and undeveloped land.

UV stands for Unimproved Value, which typically denotes pastoral or uncleared land that has no dwelling or significant / inhabitable improvement on it.

The rate in the dollar for these properties is less as these properties are often much larger and therefore hold significant value.

The reduced rate in the dollar allows parity for those landowners who hold significant landholdings in areas that may not receive the level of services, amenity and infrastructure that a residential property would have access to.

Under the Local Government Act 1995 (The Act), minimum rates are able to be set by local government authorities.

Minimum rates payable are the lowest amount a property can be charged, regardless of what its valuation is.

Councils can set a minimum rate to ensure that all property owners make a reasonable contribution toward local government services and infrastructure.

The Act requires no more than 50% of properties be levied on a minimum rate unless Ministerial approval is obtained.

The proposed standard minimum rate for 2026/27 is $1700 for each rate zone (GRV and UV).

Prior to 2012, the rate in the dollar for Residential and Special Rural (now zoned Rural Residential) was the same.

In 2012, the Rural Residential zone was purposely discounted to absorb the impact of a revaluation process which occurred in 2011.

The intention at the time was to apply the discount with a view to re-aligning the residential and residential rural rates in the dollar over the following years.

However, this never occurred.

Since 2022/23 FY, the adopted rating strategies have been attempting to correct this disparity between Residential and Rural Residential rates in the dollar, with the proposed 9.3% increase to Rural Residential in the Rating Strategy of the Special Council Meeting on Wednesday 10 June 2026, being intended to finally align and provide parity between the two rate zones.

The Shire acknowledges Rural Residential owners attending the Special Council Meeting expressed a lack of desire for the level and type of services provided to Residential properties. Rates levied however are not a fee-for-service. 

Rates are a taxation on wealth determined by property value, with Rural Residential properties being valued typically at a higher value than Residential dwellings.

The Local Government Act 1995 (Section 6.37) allows a local Specified Area Rate (SAR) to be levied on properties within an identified geographic area to maintain additional service levels.

These service levels typically relate to maintaining facilities, assets and infrastructure.

An SAR is levied on properties to maintain parks, gardens, natural reserves, infrastructure, amenities and facilities.

It is designed to recover some of the costs of maintaining facilities from the main beneficiaries being the residents of the area.