Landgate valuation adds to Shire of Augusta-Margaret River ratepayer burden

The Shire of Augusta-Margaret River’s finance wing has taken pains to note a key driver in its rates calculations this year were a series of whopping property valuations imposed on ratepayers and the local government by State agency Landgate. While councillors will decide on the proposed 4 per cent rates rise under a direction to collect urgently-needed extra income from residents – as guided by key financial documents – the situation faced by ratepayers could be much worse without the Shire’s downward adjustment in calculations. On average, the Gross Rental Value category, which included homes, increased by a staggered 16.05 per cent, while the Unimproved Valuation category for vacant and rural land climbed an average of 9.15 per cent. Using those growth rates would have produced a rates increase 14 per cent above property growth for a rate yield of $26.908 million, the Shire report said. “This was not deemed to be an acceptable rate yield increase, as it would add significant burden to the community in the form of large rate bill increases,” officers said. “Adjusting minimum payments and rates in the dollar in this way (under the proposed 4 per cent increase) will result in a total rate yield of $24.578 million. “This is $2.330 million less than the amount that would be raised if we implemented Landgate’s property revaluations without making any adjustment to rating details.” However, there could still be a sting in the tail for some ratepayers due to variance between Landgate’s imposed valuations across all property types, with homeowners likely to be the hardest hit. “When reviewing the Landgate revaluation roll, an extremely wide range of variations is demonstrated,” the report said. “As a result of the broad range of variations in valuation, whilst the average rate yield increase for each GRV category is set at 4 per cent, some property owners will receive property rate increases greater than the 4 per cent target. “With the calculation of rates being dependent upon property valuation, this cannot be avoided.” Residential properties saw some increases above 20 per cent, while commercial, tourism and industrial sites generally increased under 10 per cent. Rural land holdings were revalued at an average increase of 9.15 per cent – compared to a meagre 0.1 per cent jump in 2020. The Shire received the updated Landgate valuations in April.