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Understanding rates

Rates cap

The Victorian Government caps rate increases at 2.0 per cent each year. The cap applies to the average annual increase in rates and charges. 

The City of Greater Dandenong has met this cap. 

The rates cap does not cover some charges, such as the waste service charge. Your rates notice may include these types of rates and charges.

Property values and your rates

How much you pay for your rates depends on the value of your property. 

The Valuer-General Victoria gives Council a yearly valuation of your property. State laws require a yearly valuation. The valuation helps Council work out what your rates will be.

This valuation doesn't increase or decrease revenue for Council. Council uses the valuation to make sure that rates stay fair over time and reflect property values.

A decrease in your property valuation does not always mean you will pay less rates.

How rates are calculated

To work out your rates, the City of Greater Dandenong multiplies the total capital improved value (CIV) of the property by the rate in the dollar. The CIV is the total market value of the land, plus buildings and other improvements.

Council sets the rate in the dollar each year. This helps Council work out what your rates will be.

CIV x rate in the dollar = rates

Council increased rates by 2 per cent for 2020-21 based on CIV and the rate in the dollar.

If you are a residential ratepayer, you have a residential garbage charge as well as your general rates. Council includes this charge in your rates notice and you pay it with your rates. Your rates also include the Victorian Government Landfill Levy.

Rating structure for 1 July 2020 – 30 June 2021

The example property value and example rates are a guide only.

Name Rate value (cents per dollar) Example property value Example rate
Houses, flats and units $0.0016796486 $600,000 $1007.00
Commercial properties $0.0031913324 $1,200,000 $3,829.00
Industrial properties $0.0046190337 $1,600,000 $7,390.00
Vacant residential land $0.0025194729 $750,000 $1,889.00
Farms $0.0012597365 $5,500,000 $6928.00
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