Information on special charges

From http://knowyourcouncil.vic.gov.au/guide-to-councils/finance-and-planning/rates-and-charges Sometimes a council will levy special rates or special charges. These are different from general rates and charges because they are levied for particular works or services and they are levied on a limited number of ratepayers. Councils are able to levy a special rate, a special charge, or a combination of these to help pay for any council service or activity that will be of special benefit to a particular group of property owners. Common examples of special rates or charges include schemes for constructing footpaths, roads, kerbs and channels or drains. They may cover the provision of services like promotion, marketing or economic development (for example, for commercial businesses). A council may set a special rate or charge for almost any type of activity that the council undertakes. Councils must comply with the provisions of the Local Government Act when setting special rates or charges. Special rates and charges must be levied in proportion to the special benefits to which they relate. Before a council proposes a special rate or charge, it must estimate the proportion of the benefits of the proposed works or services that will be of benefit to the people who are liable to pay. For example, before a council proposes a special charge for a road construction scheme it will calculate what share of the benefits of the road construction will provide for the adjoining properties (improved drainage, reduced dust, better access, and so on) compared with general benefits to other people (for example, other drivers using the road). The council will limit the total proportion of costs to be paid by all the property owners to their combined share of the benefits. The council will also set criteria to determine how the rate or charge will be apportioned between the affected ratepayers. Understanding the way a special rate or special charge is apportioned can be complicated. Contact your council for more details. Variations to special rates and charges A council may vary a special rate or special charge it has imposed. This variation may relate to the amount to be paid, the people liable or the land affected. If a variation to a special rate or charge means that people not previously liable now have to pay, or if there is a difference in the amounts to be paid, the council must advertise the variation and people may lodge submissions under section 223 of the Local Government Act. Public notice and consultation By law, before finalising a special rate or charge, the council must undertake formal public consultation. Councils will often ask the community for comment before proposing the rate or charge, although this is not mandatory. People have the right to put in a formal submission before the council finalises a special rate or charge. The council is required to consider all submissions that are received within 28 days of the public notice, although councils may allow a longer time for submissions. If the council is proposing to raise more than two-thirds of the total cost of a project as a special rate or charge, the affected ratepayers must also be given a formal right to object. If objections are received from a majority of properties within 28 days, the council cannot approve the special rate or charge. This objection process does not apply to drainage schemes that are required for public health. Under certain conditions, people who are required to pay a special rate or special charge may appeal to the Victorian Civil Administrative Tribunal (VCAT).