City of Karratha

Proposed rate model released for 18/19

15 May 2018

The City’s proposed rate model will see enhanced community services and facilities delivered for a modest increase in rates.

Overall the City of Karratha plans to collect one per cent more in rates in 2018/19.

The increase will be felt unevenly, however, due to a re-valuation of property gross rental values (GRV) in the City over the past year.

City of Karratha Mayor Peter Long said Council tried to minimise the rate increase as much as possible while continuing to maintain the standard of services the community expects.

“Every year we are asked to deliver a wide range of services and projects which requires a certain amount of income to maintain,” Cr Long said.

“We have worked hard to reduce Council’s reliance on rates as a source of income. We are in a position now where rates account for approximately a third of City’s funding, compared to closer to 60 per cent in other local government areas, and residential rates make up less than half of that.”

“While the money we receive from grants, subsidies, fees and charges is reducing every year, we have been able to keep rates income consistent, while at the same time delivering more and better services to the community including the new Red Earth Arts Precinct, upgraded roads and footpaths, new parks and ovals, community events and additional sporting facilities.”

“Rates are calculated by multiplying the GRV of a property by the rate in the dollar set by Council. When valuations have previously increased, Council has significantly reduced the rate in the dollar to compensate.”

“As valuations have dropped this year, the rate in the dollar charged has increased to ensure the City receives the rate yield required to deliver the infrastructure and services planned for the next financial year.”

“Each property is valued individually so changes in value are inconsistent across the City, and even within suburbs and towns.”

“If the proposed rates model is implemented, 25 per cent of residential ratepayers will receive a reduction in their rates bill and a further 37 per cent will see their rates bill increase by less than 2 per cent.” 

“Where rental values have retained greater value in comparison to other properties in the District, rates will be higher than 2 per cent.”

“On average, residential ratepayers will pay less than $1 per week in additional rates for in 2018/19 compared to 2017/18.”

The public submission period for the proposed rates model closes 30 May 2018.

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