How are Rates Calculated?

Local Government Authorities in Western Australia levy rates against each property by determining a 'rate in the dollar' which is then multiplied by the Gross Rental Value (GRV) of the property as determined by the Valuer General's Office.

Effective from 1/7/2018 the City of Vincent imposed Differential Rating as detailed below. 

Rates for 2018/19

The rate in the dollar for Residential category is 0.06490
The rate in the dollar for Other category is 0.06619
The rate in the dollar for Vacant-Commercial is 0.12628

For example:
In the 2018/2019 financial year, Council has determined that the rate in the dollar to be applied for rates is 0.06490 for Residential Properties. This means that 6.49 cents will be levied as rates for every dollar of GRV assigned to a property depending on which differential rates category it falls into.

The Valuer General may determine that a brick and tiled house in Mt Hawthorn which contains 4 bedrooms, kitchen, 2 bathrooms, laundry, and a double carport could attract a rent after basic expenses of $400 per week. Rent of $400 per week multiplied by 52 weeks per year gives a Gross Rental Value of $20,800.

GRV = $400 x 52 = $20,800

The rates to be levied against that particular property would be

Rates = $20,800 x 0.06490 = $1,349.92

Gross Rental Value of $20,800 multiplied by the rate in the dollar of 0.06490 gives the value of rates for the property of $1,349.92.