FAQs

Across Australia, Local Governments deliver critical community services such as building and maintaining road infrastructure, collecting and processing waste and other community-focused activities and projects. While the delivery (size, amount and frequency) of these services and activities can change, they must be annually funded by Local Government.

Each year, the Shire of Denmark raises funds to cover the cost of those services and activities through the following means: Grants and contributions, fees and charges, rates and other. Last financial year, funds raised from ratepayers was equal to $41 of each $100 needed to cover our operating budget. 

For many Local Governments, ratepayers pay for more than 50% of the annual operating budget, but in the Shire of Denmark, we work hard to generate other revenue streams to keep rates as low as possible.

Basically, the value of your property (depending on where it is and what it’s used for) corresponds directly to the amount of the rates you’re required to pay. This is a differential rating system.

Not necessarily. In the Shire of Denmark, the increase in total revenue from all six rating categories equals the percentage increase you hear about.

It’s widely acknowledged that the cost of living and the cost of doing business continues to rise. Denmark isn’t immune to these challenges, meaning the cost of delivering services and infrastructure for our community has increased.

In order to maintain the Shire’s standard of service delivery, Council is opening the discussion on rates for the coming financial year at a total rates revenue increase of 5.5%. 

At 5.5%, Council will be able to continue the level of service delivery that enables road maintenance, keeps our tip functioning and our community services running. A 5.5% increase will also make it possible for Council to deliver on a number of community-focused projects slated for the year ahead in our draft budget. 

It’s important to note that this is the start of the rates discussion. The 5.5% increase isn’t final or approved by Council yet. There will be a public comment period ahead of Council’s final decision on setting rates.

In the Shire of Denmark, we rely heavily on grants, contributions, fees and charges to fund more than 50% of our operating budget. This reliance carries a risk because funds generated through grants and contributions are not guaranteed. If rates were to reduce, our community’s reliance on other funding streams would increase beyond a sustainable level, as would the associated risks. Our community would need to accept a reduced level of service delivery to mitigate this risk.

Council and staff have already made strategic cuts to the proposed projects for the coming financial year to allow for the proposal of a 5.5% total rates revenue increase to be considered. Further cuts will be required to bring that percentage increase down, meaning some of the key community projects in the draft budget may no longer be possible for delivery.

It’s important to remember that no one at the Shire of Denmark enjoys considering the idea of a rate rise - our staff and Councillors are ratepayers too! 

Each year, the revenue streams which feed into the annual budget are carefully reviewed, with the interests of the community at the forefront of any decisions. Rates revenue makes up a critical portion of the Shire’s annual operating budget and without these funds, essential services could not be delivered. 

As the costs of service delivery are exposed to challenging economic conditions, Council has to factor those pressures, like inflation, into decision making.

At the June Ordinary Council Meeting, Council voted on what proposed rates they will advertise to the public for comment. 

Now, the proposed rates for 2023/2024 will be advertised for Public Comment over a 21 day period (Wednesday 21 June - Thursday 13 July). 

Public comment submissions will be collated for Council to read ahead of a Council meeting in July at which point Council will vote on the rates for the coming year and adopt the 2023/2024 budget. This is when the final decision on rates will be set in stone, after which our Rates Officer will begin the process of distributing rates notices to ratepayers.

There are six rating categories as listed below:

Gross Rental Valuation (GRV) properties:

Non-Rural Improved: All properties held or used for Non-Rural Purposes and not for Holiday Purposes and that are not currently vacant. A property is determined to be held or used for Non-Rural Purposes where the method of valuation used for the property of rating is the Gross Rental Value (GRV).

Holiday Purposes: All properties held or used for Non-Rural purposes and for Holiday Purposes. A property is determined to be held or used for Holiday Purposes where the property has been granted planning approval by the Shire to operate as a holiday home (standard or large) or holiday accommodation, as defined in Town Planning Scheme 3, and where the method of valuation used for the property for rating is the Gross Rental Value (GRV).

Vacant: All properties held or used for Non-Rural purposes and that are currently vacant. 

Unimproved Value (UV) properties:

Rural: All properties held or used for Non-Rural purposes and that are currently vacant. A property is determined to be held or used for Rural Purposes where the method of valuation used for the property for the purposes of rating is the Unimproved Value (UV) of the property.

Rural - Additional Use Holiday: All properties held or used for Rural purposes and have additional Non-Rural Holiday Use(s). A property is determined to be held or used for Rural Additional Use Holiday Purposes where the method of valuation used for the property for the purposes of rating is the Unimproved Value (UV) of the property and where it has been granted planning approval by the Shire to operate a holiday homes (standard or large) or holiday accommodation as defined in Town Planning Scheme 3. Where there are approved holiday homes or chalets up to a quantity of four, then this Rural Additional Use Holiday category will apply.

Rural - Additional Use Commercial: All properties held or used for Rural purposes and have additional Non-Rural Commercial Use(s). A property is determined to be held or used for Rural Additional Use Commercial Purposes where the method of valuation used for the property for the purposes of rating is the Unimproved Value (UV) of the property and where the property is operating approved non rural commercial activities. Where there is approved commercial activities or holiday accommodation over a quantity of four then this Rural Additional Use Commercial category will apply. 

The percentage applied to the valuation to determine the rate amount. For example, if a property is valued at $10,000 and the ‘rate in the dollar’ for the relevant rating category is 10c, we will multiply the value ($10,000) by the rate in the dollar (10c) and the result will be the value of rates ($10,000 x 10c = $1000).

If your property’s calculated rate amount is lower than the minimum payment, you will be required to pay the minimum payment amount for your rating category. All Local Governments are required to have a minimum payment category to ensure fairness and equity for all ratepayers.

When Council publicly advertises proposed rate charges for 2023/2024, the advertised rate is not yet set in stone. 

The community is encouraged to provide formal feedback during the public comment period which this year will extend from Wednesday 21 June 2023 to noon on Thursday 13 July 2023. 

The sooner we have information about changes to rating categories, the better for the Shire’s budget formation, but property owners are able to advise us of changes at any time.

Our Rates Officer is available to assist with your questions at (08) 9848 0300 or enquiries@denmark.wa.gov.au