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Differential Rating
Differential Rating
The Local Government Act 1989 allows a Council to apply a differential rating system. This is established in Council’s Rating Strategy.
Differential rating means that each class of property will have a different rate in the dollar, commonly known as differential rating.
This is calculated by dividing the general rates revenue by municipality’s aggregate Capital Improved Value (CIV) for each property class. This calculates a ‘rate in the dollar’ which is then applied to each individual property value.
Council has six classifications of land. See below for more information:
Definitions and characteristics: Residential land is any land which is not derelict land, unactivated retail land or vacant land:
- on which a building is erected and which is lawfully used or available to be lawfully used for a residential purpose
- which is located in a Residential Zone under the Port Phillip Planning Scheme.
Objective: To ensure that all rateable land makes an equitable financial contribution to the cost of carrying out the functions of Council, including but not limited to the:
- construction and maintenance of infrastructure assets
- development and provision of health, environment, conservation, and community services
- provision of strategic, statutory and general support services
- promotion of economic and employment development, cultural, heritage and tourism of Council’s municipal district.
Type and class: The types and classes of rateable land within this differential rate are those having the relevant characteristics described above.
Use and level of differential rate: The differential rate will be used to fund some of those items of expenditure described in the Budget adopted by Council. The level of the differential rate is the level which Council considers is necessary to achieve the objectives specified above.
Geographic location: Wherever located within the municipal district.
Use of land: Any use permitted under the Port Phillip Planning Scheme.
Planning scheme zoning: The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the Port Phillip Planning Scheme.
Types of buildings: For the purposes of classifying residential land, the types of buildings on the land within this differential rate are all buildings which are present on the land at the date of declaration for the 2024/25 financial year.
Definitions and characteristics: Commercial land is any land which is not deemed to be derelict land, unactivated retail land, vacant land; and which is primarily used or adapted for retail, office, business, entertainment, or community uses, or for other commercial purposes.
Objective: To ensure that all rateable land makes an equitable financial contribution to the cost of carrying out the functions of Council, including but not limited to the:
- construction and maintenance of infrastructure assets
- development and provision of health, environment, conservation, and community services
- provision of strategic, statutory and general support services
- promotion of economic and employment development, cultural, heritage and tourism of Council’s municipal district.
Type and class: The types and classes of rateable land within this differential rate are those having the relevant characteristics described above.
Use and level of differential rate: The differential rate will be used to fund some of those items of expenditure described in the Budget adopted by Council. The level of the differential rate is the level which Council considers is necessary to achieve the objectives specified above.
Geographic location: Wherever located within the municipal district.
Use of land: Any use permitted under the Port Phillip Planning Scheme.
Planning Scheme zoning: The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the Port Phillip Planning Scheme.
Types of buildings: For the purposes of classifying commercial land, the types of buildings on the land within this differential rate are all buildings which are present on the land at the date of the declaration for the 2024/25 financial year.
Definitions and characteristics: Industrial land is any land which is not derelict land, unactivated retail land or vacant land;
- which is primarily used or adapted for use for an industrial purpose, such as manufacturing, storage or distribution
- which is located in an Industrial Zone or any other zone under the Port Phillip Planning Scheme.
Objective: To ensure that all rateable land makes an equitable financial contribution to the cost of carrying out the functions of Council, including but not limited to the:
- construction and maintenance of infrastructure assets
- development and provision of health, environment, conservation, and community services
- provision of strategic, statutory and general support services
- promotion of economic and employment development, cultural, heritage and tourism of Council’s municipal district.
Type and class: The types and classes of rateable land within this differential rate are those having the relevant characteristics described above.
Use and level of differential rate: The differential rate will be used to fund some of those items of expenditure described in the Budget adopted by Council. The level of the differential rate is the level which Council considers is necessary to achieve the objectives specified above.
Geographic location: Wherever located within the municipal district.
Use of land: Any use permitted under the Port Phillip Planning Scheme.
Planning scheme zoning: The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the Port Phillip Planning Scheme.
Types of buildings: For the purposes of classifying industrial land, the types of buildings on the land within this differential rate are all buildings which are present on the land at the date of declaration for the 2024/25 financial year.
Definitions and characteristics:
Derelict land is any land:
1. which:
- contains a building which is unfit for occupation; and/or
- is otherwise not adequately maintained such that it is unfit for occupation; and
2. which meets one or more of the following criteria:
- the building or land is destroyed, decayed, deteriorated, or fallen into partial ruin especially through neglect or misuse (this may include but not be limited to excessive dirt; peeling paint; broken windows, elements of the facade or advertising signs; loose or broken fittings, fixtures; or faulty lighting);
- the building or land constitutes a danger to health or property which may include but is not limited to:
- the existence on the property of vermin, litter, fire damage or other environmental hazards
- a partially built structure in respect of which there is no building permit.
- the building or land provides an opportunity to be used in a manner that may cause a nuisance or become detrimental to the amenity of the immediate area;
- there is excessive growth of vegetation, weeds or undergrowth; or
- the building or land affects the general amenity of adjoining land or neighbourhood by the appearance of graffiti, any stored unregistered motor vehicles, machinery (or parts thereof), scrap metal, second hand timber and or building materials, waste paper, rags, bottles, soil or similar materials.
For the purposes of this definition, ‘unfit for occupation’ means:
In respect of a building:
- that it is unsuitable for uses permitted on the land under the Port Phillip Planning Scheme by reason of its condition; or
- that it is otherwise unsafe or unsuitable for use as a place of business or habitation; and
In respect of land:
- that it is not regularly maintained to remove excess vegetation, weeds or undergrowth; and/or
- that has graffiti, excessive unremoved waste, or illegal dumping.
Objective:
To ensure that all rateable land makes an equitable financial contribution to the cost of carrying out the functions of Council, including, but not limited to:
- the construction and maintenance of infrastructure assets
- the development and provision of health, environment, conservation, and community services
- the provision of strategic, statutory and general support services
- the promotion of economic and employment development, cultural, heritage and tourism of Council’s municipal district.
To achieve the best outcomes for the community by:
- encouraging the utilisation of land within the municipality
- minimising the impact of derelict buildings on neighbourhood amenity (for example, dumped rubbish, anti-social behaviour)
- disincentivising ‘land banking’ and encouraging development to create a vibrant and liveable City.
Type and class: The types and classes of rateable land within this differential rate are those having the relevant characteristics described above.
Use and level of differential rate: The differential rate will be used to fund some of those items of expenditure described in the Budget adopted by Council. The level of the differential rate is the level which Council considers is necessary to achieve the objectives specified above.
Geographic location: Wherever located within the municipal district.
Use of land: Any use permitted under the Port Phillip Planning Scheme.
Planning scheme zoning: The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the Port Phillip Planning Scheme.
Types of buildings: For the purposes of classifying derelict land, the types of buildings on the land within this differential rate are all buildings which are present on the land at the date of declaration for the 2024/25 financial year.
Definitions and characteristics: Unactivated retail land is any land, that is not residential land, derelict land or vacant land, on which a building is erected which:
- is designed or adapted for retail business occupation
- has not been open for trade for a period greater than 30 days in the 24 months prior to the date of declaration of rates for the 2024/25 financial year
- no building permit for development of the building has been issued under the Building Act 1993 in the 12 months prior to the date of declaration of rates for the 2024/2025 financial year.
Objective:
1. To ensure that all rateable land makes an equitable financial contribution to the cost of carrying out the functions of Council, including but not limited to the:
- construction and maintenance of infrastructure assets
- development and provision of health, environment, conservation, and community services
- provision of strategic, statutory and general support services
- promotion of economic and employment development, cultural, heritage and tourism of Council’s municipal district
2. To achieve the best outcomes for the community by:
- To achieve the best outcomes for the community by:
- creating vibrant and activated retail and business precincts
- improving municipal streetscapes creating a vibrant and liveable City
- minimising retail and business spaces being left vacant and impacting on the activation of retail and business streetscapes
- preventing of foregone community and economic development resulting from underutilisation of land.
Type and class: The types and classes of rateable land within this differential rate are those that have the relevant characteristics described above.
Use and level of differential rate: The differential rate will be used to fund some of those items of expenditure described in the Budget adopted by Council. The level of the differential rate is the level which Council considers is necessary to achieve the objectives specified above.
Geographic location: Wherever located within the municipal district.
Use of land: Any use permitted under the Port Phillip Planning Scheme.
Planning scheme zoning: The zoning applicable to each rateable land within this category, as determined by consulting maps referred to in the Port Phillip Planning Scheme.
Types of buildings: For the purposes of classifying unactivated retail land, the types of buildings on the land within this differential rate are all buildings which are present on the land at the date of declaration for the 2024/25 financial year.
Definitions and characteristics: Vacant land is any land:
- which is not commercial land, industrial land, derelict land or unactivated retail land
- on which there is no building that is lawfully occupied or lawfully adapted for occupation for the period of 24 months prior to the declaration of rates for the 2024/25 financial year.
For the purposes of this definition:
- land will no longer be considered vacant land in the financial year after approval at frame stage has been provided in accordance with Building Permit issued for the development of the site (under the Building Act 1993) provided that the building permit has not expired.
Objective:
1. To ensure that all rateable land makes an equitable financial contribution to the cost of carrying out the functions of Council, including but not limited to:
- the construction and maintenance of infrastructure assets
- the development and provision of health, environment, conservation, and community services
- the provision of strategic, statutory and general support services
- the promotion of economic and employment development, cultural, heritage and tourism of Council’s municipal district.
2. To achieve the best outcomes for the community by:
- encouraging of the timely development and maintenance of land within the municipality
- encouraging development to ensure maximum availability of housing and infrastructure
- disincentivising ‘land banking’ and encourage development to create a vibrant and liveable City.
Type and class: The types and classes of rateable land within this differential rate are those having the relevant characteristics described above.
Use and level of differential rate: The differential rate will be used to fund some of those items of expenditure described in the Budget adopted by Council. The level of the differential rate is the level which Council considers is necessary to achieve the objectives specified above.
Geographic location: Wherever located within the municipal district.
Use of land: Any use permitted under the Port Phillip Planning Scheme.
Planning scheme zoning: For the purpose of classifying vacant land, the zoning applicable to a parcel of rateable land is determined by consulting maps referred to in the Port Phillip Planning Scheme.
Types of buildings: For the purposes of classifying vacant land, this differential rate relates to land on which, at the date of declaration for the 2024/25 financial year, there is no building that is lawfully occupied or adapted for permanent occupation.
Definitions for the applicable rating year are published annually in Volume 2 of the Council Plan and Budget.
Review of differential rating categories
You can request an internal review of the classification of your property. You can log your request for a review online here.
If you disagree with the outcome of the review, you can appeal to the Victorian Civil and Administrative Tribunal (VCAT) under section 183 of the Local Government Act 1989.
Your appeal must be lodged with VCAT within 60 days of the date of issue of the annual rates, charges and valuation notice.
Contact us
Our Rates Team is here to help with questions about your rates.
Send us a message on My Port Phillip
Phone: 03 9209 6777