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If you've taken a look online at your land valuations, you may be delighted but possibly also worried.
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Every three years the NSW Valuer General looks at the value of our unimproved land and issues notifications of the new value. This was undertaken in 2022 and although you may not have yet received your notification in the post, it is possible to find the details online.
For those who have, there have been some surprises with increases in unimproved land values of more than 100 per cent.
This has caused some residents concern that big increases in land values will be reflected in their rates..
But that's not a correct assumption because it's not how rates and land valuations work.
Council has a fixed amount of money it can collect in general rates.
The only way this amount can increase is through the annual rate peg or via a special rate variation.
IN OTHER NEWS:
The general rates 'pie' is a set value or size which can't change through changes in land values.
But that does not mean your rates will necessarily stay the same.
If every ratepayer's land value goes up by the same percentage, everyone will continue to pay the same, because the same amount for the rates 'pie' has to be collected.
If your rates go up by a greater percentage than your neighbours, you may end up paying a little more while your neighbour pays a little less. It's all about collecting the same amount of money for the rates 'pie'.