Rodney Stevens

A James Creek resident who received a 51 per-cent increase in their 2023-24 Clarence Valley Council (CVC) rates says council needs to implement a more uniform system of calculating rates that is fair for all ratepayers across the valley.

Terry Hudson claims the government have been “pulling the wool over people’s eyes for years” by the way the Valuer General values property at the ‘Unimproved Value’, which he says is done for land tax purposes.

“If you have a property that is not your prime place of residence and it’s over a certain value you have to pay land tax on it each year,” he said.

Mr Hudson said the Valuer General then provides the ‘Unimproved Value’ to NSW councils which is used to calculate rates.

According to Clarence Valley Council, land rates are based on the property land values in your area and determined in accordance with the Local Government Act 1993.

Council’s website states each property is to pay a similar amount for basic service provision (ordinary rates) together with the calculated ad valorem amount.

The ad valorem rate is based on the unimproved value of the land and does not include the value of your house, buildings, or other improvements to the land.

In addition to ordinary rates, council imposes annual charges for sewer, water and waste.

In using the ‘Unimproved Value’ to calculate rates, Mr Hudson said council changes the rate in the dollar that they put on the unimproved value of land in different locations in the Clarence Valley, which he says should be the same as they all receive the same services from council.

“In Yamba the rate in the dollar is 16 cents, and it used to be 55 cents here at James Creek and now it is 33 cents in the dollar,” he said.

“The rate in the dollar council use to calculate rates is up and down everywhere all over the valley.”

When he recently received his rates notice, Mr Hudson said his 6363 square metres of land at James Creek increased its ‘Unimproved Value’ from $180,000 to $497,000, which equates to a $600 increase in his annual rates, a rise of 51 per-cent.

“We can’t change the ‘Unimproved Value’, the Valuer General does that, the only way council can calculate rates equally for all the people is to use the same rate in the dollar for all locations in the Clarence Valley,” he said.

“If you live in Grafton on a 1000 square metre block and someone else lives in Yamba on a 100 square metre block you should be paying the same rates because you are getting the same amount of service from council.”

Mr Hudson said when he enquired with council about why different rates in the dollar are used in different locations across the local government area, he was told the differing rates were voted on by councillors at council’s June meeting.

Mr Hudson said when he contacted the rates department last week at CVC, it was stated to him that councillors voted on these rate rises caused by the differing rate in the dollar adjustments, at their council meeting, on the 24th of June this year, and to check the minutes of that meeting.

Clarence Valley Council Director Corporate and Community Alex Moar said under the Local Government Act, a local council may impose a single general rate, or a differential general rate which generally ensures that every ratepayer makes a reasonable contribution to the rate burden.

“For this reason, Clarence Valley Council has adopted a differential general rate calculation,” he said.

“Overall land values in the Clarence Valley have doubled in the past three years.

“Some ratepayers, particularly in areas with the greatest increase in land values, have noticed an increase in their rates bill.

“The Valuer General values the land in accordance with the provisions of the Valuation of Land Act 1978.

“People with land valuation concerns are encouraged to contact the Valuer General and Council will adjust ratings accordingly in the event of land values being successfully re-evaluated.”

Mr Moar said a landowner has 60 days to lodge an objection to the land value review.

“Council has no control over changes in land value when they occur,” he said.

“The Valuer General, an independent body, provides these values that Council uses as part of the rates calculation.” 

For further information on our rating structure and applicable rates, please refer to CVC’s Revenue Policy within the 2023/2024 Operational Plan council’s website: https://issuu.com/clarencevalleycouncil/docs/operational_plan_2023_2024