Rates are the City's primary sources of ongoing income, making up approximately 55% of our income each year.
Rates are used to provide essential infrastructure and services.
If you own a home or business property you will pay rates to your local council, unless your property (a church, school or hospital, for example) is exempt from rates. These rates are determined in accordance with the provisions of the Local Government Act 1993.
3 levies and charges may be shown on your rates notice.
1. General rates
Rates are calculated from property valuations supplied by the NSW Valuer General. The calculation of rates is tied to the value of your property, and the limits placed on councils in setting rates.
Land valuations: New land values are issued every three years. As the City's overall rates income is limited by rate pegging, an increase (or decrease) in your land value does not necessarily mean a corresponding increase (or decrease) in your rates.
Categorisation of land: All rateable land within the local area is categorised as either residential or business. The City determines the category of your property based on its dominant use.
There are 3 sub-categories within the local area:
- business CBD.
Rate pegging: Each year the NSW State Government through the Independent Pricing and Regulatory Tribunal (IPART) approves a maximum percentage increase in the total income a council can receive from rates, thereby limiting the amount of income a council can raise via general rates.
Rates calculations: The City uses the method of ad valorem and minimum rates. Under this method, a council must impose a rate per dollar (ad valorem) of land value, with a minimum amount.
The rate per dollar calculation uses the land's valuation and category.
If the valuation multiplied by the rate per dollar falls below the minimum rate, a minimum rate will be charged.
Our rates calculator can help estimate your rates for a full financial year. You'll need a rates notice handy.
GST: Council rates are exempt from the goods and services tax.
2. Stormwater charge
Property owners must also pay a 'Stormwater Management Service Charge' that contributes to the cost of providing new or additional stormwater services across the local area.
The yearly charge for residential landowners is $25 while strata unit and company-titled property owners pay $12.50.
Certain land may be exempt from the charge, such as Crown land, vacant land containing no impervious surfaces, and land belonging to charities and public benevolent institutions.
3. Waste services charge
Residential property owners also pay for waste services, including clean-ups and recycling.
The price you pay for these services is clearly marked on your rate notice, under 'Domestic Waste Management Charge', which is also exempt from GST.
Rates payment information
Due dates for rates
Rates are paid every year and can be paid in full or by quarterly instalments.
If you are paying in full, your rates are due on or before 31 August each financial year.
The due dates for quarterly instalments are:
- 1st instalment - 31 August
- 2nd instalment - 30 November
- 3rd instalment - 28 February
- 4th instalment - 31 May
Late payments and interest charges
If you don’t pay your rates on or before the due date, interest (calculated daily) will be charged on the amount owing. The interest rate is set annually by the Independent Pricing and Regulatory Tribunal (IPART).
The current interest rate for the 2014/15 financial year – displayed on the front of your rates notice – is 8.5% per year.
The City may take legal action to recover unpaid rates and charge the cost of the action to the ratepayer.
Change your postal address
The City will be notified if you change your name by the relevant state government agencies.
If the rates have been overpaid on a property, only the person who made the payment can apply for a refund. Sufficient evidence of the payment will need to be submitted along with the Rates overpayment refund application available below.
If you are having difficulty paying your rates on time, please call the City to discuss possible alternative arrangements. If you are suffering severe financial difficulties you may apply for a financial hardship determination. Download and complete the form below.
You can pay your rates through direct debit. To ensure your payment is processed in time, you need to return the form, available for download below, 14 days before your due date.
To cancel your direct debit you need to notify the City in writing. If you are selling your property you are still required to cancel your direct debit in writing.
If funds are not available in your nominated account to pay your rates on the due date, the City will charge a dishonour fee and your direct debit will be cancelled.
Need more information?
City of Sydney02 9265 email@example.com
How to pay
|Online||Visa, MasterCard, American Express and electronic funds transfer accepted.|
|Direct debit||Download and complete the form below. The City can send you a form if you don’t have a printer.|
|Phone||Call 1300 360 062 and follow the prompts. Payments from credit cards and savings accounts accepted.|
|Cheque or money order||
Make the payment out to the City of Sydney and send to:
|BPAY||Our biller code is 7500. Your reference number is on your rates notice.|
|In person||At a Neighbourhood Service Centre, post office or Westpac branch. You don’t need to be a Westpac customer.|
Map showing business rate categories
View a larger version of the Business rates map
= Business ordinary rate category
= Business CBD rate category