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How rates are calculated

This page explains how 2025-26 rates are calculated in the Cumberland Local Government Area.

How rates are calculated in Cumberland City Council

The Independent Pricing & Regulatory Tribunal (IPART) for Local Government determined that Cumberland City Council may increase its general income by not more than 7.1% above the general income for the 2025/2026 financial year.

Rates are calculated based on the property value as determined by the NSW Valuer General. A rate in the dollar is applied to the property value, subject to a minimum amount. The 2022 base date land valuations were used for rating purposes. Further details are provided below.

  Residential Rate Business Rate Industrial and Multi Level Shopping Centre Rate
Rate for each dollar of unimproved land value 0.00130075 0.00273639 0.00364032
Minimum rate

$921.06 for properties with a land value less than $708,101

$1,409.44 for properties with a land value less than $515,071 $1,409.44 for properties with a land value less than $387,173

Stormwater charges

The following stormwater charges apply to each rateable property.

  Residential Rate Business Rate Industrial and Multi Level Shopping Centre Rate
Stormwater charge $25 $25 per 350 square metres, capped at $500 per property maximum $25 per 350 square metres, capped at $500 per property maximum
Stormwater charge strata properties $12.50 $12.50 $12.50

FAQs

What are rates?

Council rates are a property tax and are a source of Council revenue. Rates are used to provide essential infrastructure and services. This includes footpaths, resealing roads, and stormwater drainage as well as community facilities (parks, gardens, libraries and pools).

How are rates calculated?

Properties are assigned a category and, in some cases, a sub-category for rating purposes. Rates are calculated on the land value of a property, multiplied by an adopted ‘rate in the dollar’. The land value is determined by the NSW Valuer General, who issues a ‘Notice of Valuation’ at least every 3 years.

The current valuation is determined as at 1 July 2022. Council will use this land valuation to calculate your Rates for the next 3 years starting 1 July 2023.

Valuation NSW have issued a Notice of Valuation (NOV) to all NSW landholders for the 1 July 2022 general land valuation program.

The Notice of Valuation was issued with a copy of the Valuer General’s Your Land Value Fact Sheet

The NOV also included a QR code which, if scanned, would link the relevant person/s to the Valuer General’s most up to date information about their land value. This included, but is not limited to information such as:

  • how we value land;
  • past land values;
  • trends, medians and land values from across NSW;
  • property sales information; and
  • valuation reports, policies and fact sheets.

For more information, please visit https://www.valuergeneral.nsw.gov.au

What is rate pegging?

The Independent Pricing and Regulatory Tribunal (IPART) sets the amount that NSW councils can increase rates each year, in line with inflation and other considerations. For 2024/25 the Rate Peg has been set at 5%.

This means that Council’s total rate income is capped each year. Council cannot increase its rates revenue above the rate peg; to do so requires a ‘Special Rate Variation’ (SRV) application to IPART.

Council will only raise income to 4.5% overall, to assist ratepayers in these difficult economic times.

What is a minimum rate?

When calculating rates, if the valuation multiplied by the rate per dollar falls below the minimum rate, the minimum rate will be charged.

What options are available to me if I feel the changes will cause me financial pressure?

Council’s existing Hardship Policy (PDF, 103KB) will be available to assist ratepayers who are eligible for assistance. Ratepayers can also apply to pay their rates using an instalment plan instead of paying them as a lump sum.