Moree Plains Shire Council

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Revenue Policy

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Revenue Policy

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Sources of Council Revenue

Section 491 of the Local Government Act 1993 NSW (the Act) sets out the main sources of a council's revenue. They are as follows:

1. Rates
2. Charges
3. Grants
4. Borrowings
5. Investments
6. Fees

1. Rates

Introduction

The major component of a council’s income is produced via the raising of rate levies. Moree Plains Shire Council is proactive and determined to produce a fair balance between rates levied on the shires population and the level of services that can be provided. The amount that is required to be raised from rating is determined after considering Council’s proposed capital works program whilst ensuring the long-term financial viability of the funds. An additional consideration is the limitation on rates income that is set by the Minister for Local Government. This limitation is known as Rate Pegging and involves a percentage cap on the income raised from ordinary and special rates from one year to another.

Section 492 of the Local Government Act 1993 provides two types of rates:

(A) Ordinary rates.
(B) Special rates.

It should be noted that rates and charges are not subject to GST.

(A) The Ordinary Rate

By virtue of section 494 of the Act, council is required to make and levy an ordinary rate for each year on all ratable land in its area. This is a mandatory requirement. Land is rated based upon the use of that land or the zoned use of that land. There are four main rating categories, within which council can create additional sub-categories. The four broad categories provided by Section 493 of the Act are:

Farmland
Residential
Business
Mining

Moree Plains Shire Council utilises the first three categories only as no mining takes place within our shire. All ratable land is classed within one of the four categories unless it is deemed untreatable, such as a church or school.

Ordinary Rates for the 2004/2005 Year

General Rates are levied using a rate in the dollar (ad valorem amount) applied to the properties Unimproved Capital Value (UCV) in addition to a base amount payable for each property. The UCV information is supplied by the Valuer-General for each property. In using a ‘base rate’ council is able to reduce the spread between the higher and lower land values and distribute the cost more evenly in the shire. All properties in the shire are categorised based upon the use of the land and declared as Residential, Business or Farmland.

Council will levy Seven Ordinary Rates for the rating year 1/7/2004 to 30/6/2005. All ordinary levies will consist of the same base rate being $190. Different sub-categories of rates represent clearly identifiable centres of population.

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