Hi everyone,
Firstly, thank you to Andrew for coordinating the NSWRP response. This is a unique opportunity to debate important items in our industry to hopefully achieve significant changes.
The one thing that has been difficult is modelling CIV and the calculation of growth as proposed by IPART without CIVs on hand.
I have recently obtained some data from Melbourne City Council published reports that shows the valuation changes from property growth during 2014/15 and again during 2016/17. In both of those years, the number of rateable assessments grew by 9% but the overall CIV only grew by 5%.
In short, it shows that the average property value reduced and therefore the average rate would reduce, making it unlikely that the growth would be sufficient to cover the increased demand in services.
My suggestion is to use the CIV growth formula as proposed by IPART but make it subject to a minimum growth calculation that would ensure that the average rate per rateable assessment would not reduce.
I thought I would share this for all members to consider including in your council’s submission.
Recommendation 5 – Calculating Growth under a CIV rating system
Suzi
