Interim Rates Accounts Explained
Interim Rates are charged when there is a change to the property during the year, for example, where a new house is built, or a new room added, a property is demolished, or there is a new subdivision. Sometimes, the reason is simply that the annual account was issued in incorrect or out of date information.
When there are property changes, the Shire receives an interim valuation and an effective date from the Valuer General and is required to issue an Interim Rate Notice. The resulting increase or decrease for the balance of the year is calculated as interim rates.
Annual Charges Account
The Shire of Moora issues an annual account for each property July or August, based on the information held as at 1 July.
After this, if there is a change, which affects the amount payable, the Shire must issue an Interim Account.
Interim Account
The Interim Account may involve an increase or decrease in the amount payable, according to the circumstances. The amount is due and payable within 35 days of issue.
Main Reasons for Interim Accounts
The following explains the 4 previously mentioned reasons for issue of Interim Accounts.
1. A NEW PROPERTY
With the exception of rubbish service changes and some exempt properties, all annual charges are based on valuations as supplied by the Valuer General's office.
New valuations are obtained every time a lot is created from a subdivision or amalgamation.
2. ADDITIONS TO THE PROPERTY
When vacant land is developed and buildings or facilities placed upon it, the land is aid to have been improved. The improvement generally results in a higher valuation and hence the need to adjust the rates levied.
3. ADDITIONS TO IMPROVEMENTS
Following the improvement on vacant land a property may be further improved by the addition of extensions, other buildings or facilities. This will often result in a higher valuation and the issues of an Interim Account.
Examples of additions to improvements are:-
- Installation of a swimming pool
- Construction of a garage or carport
When is the Change Effective From?
When the Valuer General supplies a new or amended valuation, a reason for the amendment and the effective date is also provided to the Shire.
Please note that ALL valuations are reviewed and updated on a regular basis. A General District revaluation is normally carried out every four years and values are effective from the beginning of that financial year.
To Calculate Your Interim Rates Adjustment
Annual rates calculated by multiplying the property’s Gross Rental Value by the rate in the dollar*
e.g. $7,800 x $0.09 = $702 and is applied to a financial year July 1 to June 30.
If the Gross Rental Value increases to $10,000 on October 1 then the rates for a full year would be:-
e.g. $10,000 x $0.09 = $900
To calculate the rates payable for the year in which the valuation changes, a proportion of each annual charge is required.
92/365 x $702 = $176.97
273/365 x $900 = $673.15
Total $850.12
For the year in which the valuation changes from $7,800 to $10,000 whilst the rate in the dollar* in 9c, total rates payable will be $850.12.
* The rate in the dollar is set each year by Council.
If you have any queries regarding your rate Account, please contact the Shire of Moora Rates Department on 9651 1401.
Gross Rental Values
Gross Rental Values are assessed by the Valuer General and used by the Shire of Moora to determine rates which are payable on a annual basis.
These values reflect the gross rental potential of the property as at the last General District Revaluation. Any objection to the current valuation must be lodged with the Valuer General, PO Box 7201, Cloisters Square, Perth within 60 days of issue of the current notice.
Please note that the annual account must still be paid in full by the due date when lodging an objection.
Any adjustments will be made after the objection process has been completed.
Rating System
Council rates are used to provide and maintain a variety of facilities and services. These include parks, roads, welfare services, recreational facilities and the administration, which monitors and guides the overall development of the Shire.
Ordinary rates form approximately 30% of Council revenue. The annual rates levied on a property is determined by multiplying the property’s Gross Rental Value by the rate in the dollar set by Council each year.
The rate in the dollar is determined by taking the gross expenditure for the year, subtracting revenue other than rates, and dividing the result by the total of all valuations of properties within the district.