Questions being asked by the Community (FAQs)
Draft Annual Business Plan & Budget
Were options other than the 4.8% increase considered as a means of meeting Council’s budget requirements?
The proposed General Rate increase of 4.8% is based on Council’s adopted Long Term Financial Plan, which uses Adelaide CPI for the year ended December 2023. Council has reviewed, and adjusted where appropriate, all budgeted income and expenses for the upcoming year to meet its budget requirements and Long Term Financial Plan targets.
Proposed Differential Rating - general questions
Where did the proposal for differential rating come from – was it generated internally from staff or externally?
This was initiated by Council – refer to Council meeting documents from 19 March 2024 and 7 May 2024.
What is meant by the term ‘sustainable urban development’ in the letter recently sent to all vacant land holders?
The full reference in the letter is:
“This strategic approach is essential for addressing the growing demand for residential properties and fostering sustainable urban development.”
Plan SA defines sustainable development as:
Forms of development that meet the needs of the present without compromising the ability of future generations to meet their needs.
Why not rate vacant land as if it had a residential building on it? This level of rate increase may be more acceptable to owners of vacant land.
The relevant legislation does not allow this, as the Capital Value of the property determines the amount of rates levied (along with the applicable rate in the dollar).
What would happen if differential rating were introduced, all owners pay the higher rate, and no land is released?
Council would receive additional rate income as a result of the differential rate. This would be reduced if a development application was submitted for the property.
What happens if the proposal for differential rating is not endorsed by Council? How will Council make up any shortfall?
The draft 2024/2025 Budget assumes that that differential rating does not proceed, meaning that Council is meeting it key financial targets. The additional rate income will be used to fund Council’s capital works program.
If I disagree with my land being defined as ‘vacant’, can it be questioned?
The process to object to the use of the land is set out on the back of the rate notice.
If the vacant land owner decided to develop their land, would their project be prioritised by Council?
Section 125 of the Planning, Development and Infrastructure Act 2016, sets a timeframe in which all applications need to be assessed by. No applications are prioritised over any others.
Vacant land owners receive no services from Council for the rates they currently pay (eg no bin collection). Council must be ahead financially already on these rates.
These ratepayers still access various services provided by Council, including the roads and footpaths that allow them to access their property, along with stormwater drainage.
Proposed Differential Rating - various Vacant Land scenarios
Would a vacant / abandoned house be classified as ‘vacant land’?
No. An abandoned or unoccupied house would still be classified as residential as it has capital improvements on it.
Would vacant land with a shed on it be classified as ‘vacant land’?
The Valuer-General makes an assessment of the land category based on its merits and Council accepts the advice of the Valuer-General.
What would be the scenario if a young person bought land with plans to build on it after five years once it had been paid off? A differential rate would act as a disincentive, penalising younger people.
In this situation, the land owner would be subject to the higher differential rate until they successfully submitted a Development Application to the PlanSA Portal.
This would allow them to apply for a discretionary rate rebate for up to two years, exempting them from paying the higher rate for that period.
Would vacant land presently classified as commercial be required to pay the differential rates?
No. However, if the Valuer General later re-classified the land to Vacant Land it would then be subject to differential rating.
Would vacant land owned by a church be subject to differential rating?
It would depend how the land is classified. If the Church currently receives a mandatory rebate for this property, then this rebate would still be applicable if the differential rate is applied to the property.