Located approximately 25 kilometres northeast of Hobart in Tasmania, Brighton Council has introduced a fairer flat rate system that is set to revolutionise the way rates are struck throughout Tasmania.
With the new rating system introduced on July 1, Council managed to keep its rate increase below inflation at 2.3 per cent for this new financial year.
The system was developed using Council’s award winning CouncilManager software. The software took out the Innovation and Creativity Category at the recent Local Government Association of Tasmania’s Excellence Awards. It significantly reduces any major variation in rates resulting from property revaluations. CouncilManager also simplifies the laborious process of running rates estimates.
Brighton’s Deputy General Manager, Greg Davoren, said Council created its own software to run its operations, which it now sells to other Councils Australia wide. As part of this software package, Council designed the CouncilManager program to alleviate inconsistencies with rate valuations.
“The system allows users to see the impacts of rate variations by suburb, land use and so forth,” he said. “It generates graphs so we can visualise the increases and their impacts, thus making it very simple to present proposals to Council.”
Previously, Brighton used an Assessed Annual Value system (AAV), where rates were assessed based on residential property values. This system took no real account of the cost of providing general services or a ratepayer’s ability to pay.
Now, all Brighton residential properties will pay the same general rate of $670 plus fixed service costs for sewerage, water and garbage.
Brighton has also introduced a differential rating system for land use classification sectors, such as commercial, farming, industrial and community services, with increases being limited to 2.3 per cent across each classification.
Brighton is believed to be the first Council in Australia to develop the flat rate system, which provides equity for all residential properties.
Council’s long term financial plan aims to keep any future rate increases to the Consumer Price Index (CPI) or lower.
Brighton Council is happy to provide the modelling for flat rate systems to be introduced elsewhere.
For further information contact Greg Davoren on (03) 6268 7000.
