The new Land Value that applies to any individual property may vary, and in many instances significantly, from the average land value increase across the local government area. All councils in NSW are restricted by legislation, called rate pegging, as to the amount of increase in total rate income that can be applied each year. In any year when new valuations apply to a local government area, the rate in the dollar has to be recalculated in relation to the increase/decrease in land values across the whole of the area. Rates are principally calculated by multiplying the land value of a property by a rate in the dollar, subject to a minimum/base rate payable. Councils receive new land values for rating every three years.
The Valuer General supplies land values to councils to use in setting rates.
