19-05 – Information about Rating 2019-20
What’s new or changing
- The maximum Boarding House Tariffs for 2019-20 have been determined.
- The maximum interest rate payable on overdue rates and charges for 2019 20 has been determined.
- The section 603 Certificate fee for 2019-20 has been determined.
- The statutory limit on the maximum amount of minimum rates for 2019-20 has been determined for commencement on 1 July 2019.
What this will mean for your council
- Councils should incorporate these determinations into their 2019-20 rating structures and Operational Plan Statement of Revenue Policies.
Boarding House Tariffs 2019-20
- In accordance with section 516 of the Local Government Act 1993 (the Act), it has been determined that for the purpose of the definition of ‘boarding house’ and ‘lodging house’, the maximum tariffs, excluding GST, that a boarding house or lodging house may charge tariff-paying occupants are:a) Where full board and lodging was provided:
$389 per week per room for single accommodation; or
$643 per week per room for family or shared accommodation.
b) Where less than full board and lodging is provided:
$261 per week per room for single accommodation; or
$432 per week per room for family or shared accommodation.
Maximum Interest on Overdue Rates and Charges
- In accordance with section 566(3) of the Act, it has been determined that the maximum rate of interest payable on overdue rates and charges for the 2019 20 rating year will be 7.5%.
- The methodology used to calculate the interest rate is the Supreme Court methodology (the Reserve Bank cash rate plus 6%), rounded to the nearest half per cent of the maximum interest rate for the previous year. The cash rate used for the purposes of the maximum interest rate for local government is based on the rate as at 6 February 2019.Notice giving effect to these decisions was published in the NSW Government Gazette on 18 April 2019.
Section 603 Certificate
- Under section 603 of the Act, councils may issue a certificate as to the amount (if any) of rates, charges, etc., due or payable to the council for a parcel of land. Section 603(2) states the application must be accompanied by the approved fee. In accordance with the approved methodology, the approved fee for 2019-20 is determined to be $85.
- This determination applies to the issuing of a certificate for the matters specified in section 603(3) of the Act.
- Where a council offers to provide other information as an optional service, the council is not prevented from separately determining an approved fee for that additional service.
- Furthermore, a council is not prevented from determining approved fees for additional services required by an applicant for the expedited processing of a section 603 Certificate.
Statutory limit on the maximum amount of minimum rates
- Following a recommendation by IPART, clause 126 of the Local Government (General) Regulation 2005 will be amended on 1 July 2019 by the Local Government (General) Amendment (Minimum Rates) Regulation (No 2) 2018 so that:
- under section 548(3)(a) of the Act the maximum amount of a minimum ordinary rate to be $540 for 2019-20.
- The maximum amount of a minimum special rate (not being a water supply special rate or a sewerage special rate) prescribed by section 548(3)(b) of the Act will remain unchanged at $2.
Where to go for further information
- The NSW Legislation website at: www.legislation.nsw.gov.au.