Melbourne Council Rates Calculator
Estimate your annual property rates including FSPL and waste charges.
Rate Estimate Breakdown
How Council Rates are Calculated in Melbourne
Property rates in Victoria are the primary source of revenue for local councils, funding essential services like road maintenance, parks, libraries, and waste collection. In the Melbourne metropolitan area, most councils use the Capital Improved Value (CIV) as the basis for valuation.
1. Capital Improved Value (CIV)
CIV is the total market value of your property, including the land and any improvements made to it (such as your house, swimming pool, or renovations). Valuations are conducted annually by the Valuer-General Victoria.
2. The Rate in the Dollar
This is a multiplier determined by the council during their annual budget process. It is calculated by dividing the total revenue the council needs by the total value of all rateable properties in the municipality. For example, if your CIV is $1,000,000 and the Rate in the Dollar is 0.0016, your general rates would be $1,600.
3. Fire Services Property Levy (FSPL)
All Victorian property owners pay the Fire Services Property Levy. This is not a council tax but is collected by the council on behalf of the State Government to fund the CFA and FRV. It consists of:
- Fixed Component: A set fee for all residential properties ($117 for 2024-25).
- Variable Component: A small percentage based on your property's CIV and its land use classification.
4. Waste Management Charge
Most Melbourne councils apply a separate service charge for waste collection and recycling. This is usually a flat fee per household, though some councils offer tiered pricing based on bin size.
Example Calculation
Suppose you own a house in a Melbourne suburb valued at $900,000:
- General Rates: $900,000 × 0.00165 = $1,485.00
- Waste Charge: $380.00
- FSPL (Fixed): $117.00
- FSPL (Variable): $900,000 × 0.000054 = $48.60
- Total Annual Cost: $2,030.60
The Victorian Rate Cap
Under the "Fair Go Rates System," the Victorian Minister for Local Government sets a maximum limit on how much councils can increase their total rate revenue each year. For the 2024-25 financial year, the rate cap is set at 2.75%. Note that this applies to the council's total revenue, not necessarily your individual bill; if your property value rises significantly faster than your neighbors', your bill may still increase by more than the cap.