Rates explained
We collect rates from residents and businesses to help fund our infrastructure and services.
Most land is subject to rates, and most people pay rates in the residential category. There's no GST for rates and charges on residential rates notices.
Council must levy rates and charges under the Local Government Act 1993.
Why do I pay rates? How rates are calculated Cost shifting
Council Matters newsletter
Read this year's Council Matters for information about your rates and how your rates money is spent. View the interactive version below or you can download the Council Matters 2024 – Annual summary(PDF, 4MB).
Land valuations and the impact on rates
Council does not collect any more or less in rates following property revaluations.
Find out more about land values and categories and watch the video below to learn how rates are calculated.
Why do I have to pay Council rates?
Rates are Council’s main source of income, check out the various ways to pay your rates.
Your rates go towards community services local roads, libraries, sports facilities, parks and gardens. Find out how your rates are spent.
Funds raised by water, sewer and waste charges are spent on those services. See water use and billing.
Read more about postponed and exempt rates.
How rates are calculated
Council takes the total revenue to be collected from all rateable properties and divides it by the total value of all properties in the Tweed. This is called the rate in the dollar.
The rate in the dollar is multiplied by the unimproved capital value of each property to make sure each ratepayer pays a fair share.
Depending on your land value, your rates may be calculated using the minimum rate or the rate in the dollar.
Council does not receive more money when land values rise.
The only ways Council can increase its General Rate income is through a:
Service charges are also included in your annual rates notice, including water and sewerage access charges.
Tweed ratepayers are charged separately for water use.
Rate in the dollar
Council sets the rate in the dollar each financial year.
For 2024–25 these are:
- Residential 0.2666 cents per $ of land value
- Business 0.3172 cents per $ of land value
- Farmland 0.1851 cents per $ of land value.
To find the rate amount, the rate in the dollar is multiplied by the unimproved land value for each category.
Minimum rate
Each year Council sets a minimum amount for rates, a fair and reasonable contribution towards Council services.
The 2024–25 financial year minimum rate amounts are:
- Residential $1,220.35
- Business $1,341.45
- Farmland $1,220.35
Rates are calculated by multiplying the rate in the dollar by your unimproved land value. You are charged this amount, or the minimum rate (whichever is greatest).
Rates calculation 2024–25 (example only)
Unimproved land value = LV
Rate in the dollar = RD
Rates (residential) with land value $350,000
Rate in the dollar calculation (LV X RD) $350,000 x 0.002666 = $933.10
Minimum rate for residential = $1,220.35
Minimum rate applies = $1,220.35
Rates (residential) with land value $480,000
Rate in the dollar calculation (LV X RD) $480,000 x 0.002666 = $1,279.68
Minimum rate for residential = $1,220.35
Rate-in-the-dollar rate applies = $1,279.68
Special rates
Some residents pay a 'special' rate, such as residents of Koala Beach Estate. Read more about special rates.
Annual cost shifting report
Cost shifting refers to when higher levels of government transfer financial responsibilities onto lower tiers, like local councils, without providing adequate funding.
This can cause challenges for councils in maintaining essential services, due to the increasing burden of cost shifting from the state government and the constraints of rate pegging.
According to the latest report by Local Government NSW (LGNSW), councils shouldered an additional $1.36 billion in expenses for the 2021/2022 financial year, averaging $460.67 per ratepayer statewide.
Council is requesting urgent action from the NSW Government to address cost shifting - through regulatory reform and fair funding allocations – to ensure the sustainability of local government operations and the well-being of our communities.
For a comprehensive understanding of this issue, including access to the Cost Shifting 2023 Report - "How State Costs Eat Council Rates", visit the LGNSW website.