Real Estate

An increase in property values will not necessarily bring higher rates, says Local Government Association of Tasmania

Saturday Magazine Tassie Towns, historical Heybridge, located just off the Bass Highway in North-West Tasmania, houses
Written by The ReReport
As seen in the Source link, written by on 2019-06-26 15:32:00

The LGAT has responded to rates jump fears.

NOT every ratepayer in municipalities where property prices are on the climb will be slugged more in rates, the Local Government Association of Tasmania says.

The Mercury reported on Tuesday that the capital value of properties in several local government areas had risen sharply under fresh valuations by the Valuer-General.

Almost 100,000 properties were revalued and the capital value of residential properties in Brighton, Clarence, the Northern Midlands and Meander Valley rose by more than 20 per cent.


LGAT chief executive Katrena Stephenson said the increase in property values would not necessarily bring a windfall in rates, nor would every ratepayer in the municipalities where values have climbed end up paying more.

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Local Government Association of Tasmania chief Dr Katrena Stephenson. Picture: EDDIE SAFARIK

“Some believe that the expected increase in property values will result in a windfall rating profit for council. This is not the case,” Dr Stephenson said.

“The revised values are used to allocate the rates, however an increase in value does not necessarily mean an increase in rate revenue to the council.

“It is the change in relative property value – the increase in one property’s value compared to another – that determines whether an individual property’s rates increase, decrease or stay the same.

“As in any year, council only levies rates to the extent necessary to continue to provide its programs and services for the community and to fund cost increases and any expansion in programs and services.”