Rate calculations

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Calculation overview

Council rates are calculated by multiplying the capital value of the property by the rate in the dollar. Capital values are obtained each year from the Valuer-General.

Minimum rate for 2020/21

The rate in the dollar is determined by Council. The formula is adjusted by applying a minimum rate set by Council each year. The minimum rate for 2020/21 is set at $944 and will apply to all residential properties with a capital value of $382,650 or less, and to all non-residential properties with a capital value of $151,090 or less. The minimum rate can only be applied to maximum of 35 per cent of properties in the area. This ensures that all property owners contribute to the cost of services and infrastructure maintenance to each property.

Rate in the dollar

We use a formula based on property values to determine the amount of rates you pay. It ensures that costs are shared.

The amount needed to be raised from rates is divided by the total value of all properties in our area.

Rate in the dollar formula

Total rate revenue required / Total value of rateable properties = rate in the dollar

Using a rate in the dollar avoids a windfall gain from changes in property values.

Rates in the dollar for 2020/21

Residential 0.00246710
Non residential 0.00624800
NRM levy 0.00009554

How are the rates levied calculated?

The amount of rates levied on each property is calculated using this formula:

Capital value of property multiplied (x) by the rate in the dollar = rates levied (subject to minimum rate).

Example one: residential

Capital Value = $450,000

Rate in the dollar = 0.00246710 (Rates = capital value x rate in the dollar)

Minimum rate = $944.00

Result:

Rates = $450,000 x 0.0024610 = $1,110.15

As this amount (result) is greater than the minimum rte, the rate applied by the City of West Torrens remains at $1,110.15

Example two: residential with an adjustment for the minimum rate

Capital Value = $300,000

Rate in the dollar = 0.00246710 (Rates = capital value x rate in the dollar)

Result:

Rates = $300,000 x 0.00246710 = $740.10

This amount (result) is below the minimum rate (of $935.00) and must therefore be adjusted:

Rates = $740.10 + adjustment = $740.10 + $203.90 = $944.00

The rates are adjusted up by $203.90 and set by the City of West Torrens at the minimum rate of $944.00.

More information

Email the Service Centre or contact 8416 6333.