Why do we have a Rating Policy?

    Section 123 of the Local Government Act 1999 (SA) requires Council to have a Rating Policy that must be prepared and adopted as part of the Business Plan and Budget each year.

    The Rating policy includes reference to compulsory features of the rating system, as well as the policy choices that the Council makes on how it imposes rates and how it administers the collection of rates. 

    How was the Rating Policy developed?

    Fundamental to a Rating Policy is that it should be fair and equitable, recognising that all ratepayers have access to core goods and services and should contribute towards the costs of delivering them. With that in mind, the Rating Policy attempts to balance the principles of taxation with the need to raise revenue to provide the goods and services our communities need.  

    The amendments proposed to the Rating Policy are a result of Council Member feedback to the workshop presentation made at The Committee meeting held on 24 November 2020. These changes are proposed ongoing changes to our Rating Policy.

    What is the financial impact of the proposed changes to the Rating Policy?

    In 2021-2022 we estimate that:

    • changing the basis for rating vacant land will increase council rates income by $33,500
    • no longer providing pensioner and self-funded retiree concessions on rates will increase council rates income by $50,000
    • offering a 1% discount for the upfront payment of rates will reduce council rates income by $98,000
    • increasing the Special Discretionary Rate (SDR) threshold from 10% to 15% will increase council rates income by $264,000

    The four measures combined net an increased rates revenue in 2021-2022 of $347,500.

    How will my input make a difference?

    Your contribution may be used to inform the final content of the Rating Policy.

    How do I provide my submission?

    You can provide feedback by completing the survey on the draft Rating Policy by 9am Monday 19 April 2021. Please click here to complete the survey.

    Written submissions can be emailed to StrategicPlan@cityofadelaide.com.au.

    Written submissions can be posted to:

    Community Consultation 

    Draft 2020-2021 Business Plan & Budget – STAGE 1

    GPO Box 2252 

    Adelaide SA 5001

    Written submissions can also be taken to the Customer centre, 25 Pirie Street and to any of our libraries and community centres during business hours. Please ensure that you allow enough time for your submission to be delivered if opting for Australia Post.

    What happens next?

    All submissions will be acknowledged either by email or in writing so that you know your comments have been received. 

    Your input is important to us. 

    The City of Adelaide staff will collate all feedback and this report will be presented to Council for consideration as part of finalising the rating Policy and a Draft 2021-2022 Business Plan & Budget. You will have an opportunity to comment on the Draft 2021-2022 Business Plan & Budget in STAGE 2 of this engagement. 

    It is envisaged that the Draft 2021-2022 Business Plan & Budget will be presented to Council in April 2021 for endorsement for community consultation.

    What is the Annual Assessed Value basis of rating?

    At the City of Adelaide we rate residential and non-residential property on the basis of its Annual Assessed Value (AAV).

    Annual Assessed Value is one of three ways that a council can choose to rate property.  It means the rates on a property is related to how much the property might reasonably be expected to realise if leased. Most councils rate on “capital value”. Capital value is the value that might reasonably be expected to realise upon sale of a property. Capital valuations are provided by the Office of the Valuer-General, part of the Government of South Australia. Annual Assessed Values are performed by Council.

     The City of Adelaide rate property based on AAV because:

    • the dominant land use in our city is “non-residential” and most of the property in the City of Adelaide is rented, and
    • there’s a lot of market rental information available to inform the rental return of a property.

     Our property valuers use that market information to make sure that rating valuations are equitable. AAV valuations are not related to valuations done through the Office of the Valuer-General.