Australian Capital Territory
Taxation Administration (Rates) Determination 2015 (No 1)
Disallowable instrument DI2015-162
made under the  
Taxation Administration Act 1999, s139 (Determination of amounts payable under tax laws)
EXPLANATORY STATEMENT

1.	This Disallowable Instrument commences on 1 July 2015.

2.	As part of the 2015-16 Budget, the Government announced that it would continue to reform the Territory’s taxation system. Further reform to the general rates system will continue with the 2015-16 Budget.  

3.	General rates are levied on all residential properties to provide funding for a wide range of essential services to the Canberra community, including municipal services, schools, roads and hospitals.

4.	Under section 139 of the Taxation Administration Act 1999, the Minister has the authority to determine, in writing by disallowable instrument, amounts and rates applicable for the Rates Act 2004.

5.	This instrument determines the variable rating factors for the purpose of the calculation of rates payable under the Rates Act 2004.

6.	This instrument determines different amounts for the FC or fixed charge and the P or percentage rate for section 14 (3) of the Rates Act 2004.

7.	This instrument determines the fixed charge for a parcel of commercial land, the fixed charge for a parcel of residential land, the percentage rates for a parcel of commercial land, and the percentage rates for a parcel of residential land. The values are determined for section 34 (4) of the Rates Act 2004.

8.	For section 14 (3) of the Rates Act 2004, the fixed charge (FC) for 2015‑16 is determined at:
•	$730 for residential land (increased from $675 in 2014-15);
•	$2,130 for commercial land (increased from $1,915 in 2014‑15); and
•	$150 for rural land (increased from $145 in 2014-15).

9.	For section 14 (3) of the Rates Act 2004 the instrument determines the different amounts for percentage rates. Table 1 provides the thresholds and rates for residential, commercial, and rural land.

10.	Calculation of general rates for residential land is as follows:
•	The owner of land which has an average unimproved land value of $150,000 or less will be assessed at a rate of 0.2746% (increased from 0.2547% in 2014-15).
•	The owner of land which has an average unimproved land value of between $150,001 and $300,000 will be assessed at $411.90 plus 0.3857% (increased from 0.3571% in 2014-15) on the average unimproved value above $150,000.
•	The owner of land which has an average unimproved land value of between $300,001 and $450,000 will be assessed at $990.45 plus 0.4629% (increased from 0.4287% in 2014-15) on the average unimproved value above $300,000.
•	The owner of land which has an average unimproved land value greater than $450,000 will be assessed at $1684.80 plus 0.5339% (increased from 0.4873% in 2014-15) on the average unimproved value above $450,000.

11.	Calculation of general rates for commercial land is as follows:
•	The owner of land which has an average unimproved land value of $150,000 or less will be assessed at a rate of 2.6274% (increased from 2.4134% in 2014-15).
•	The owner of land which has an average unimproved land value of between $150,001 and $275,000 will be assessed at $3,941.10 plus 3.0467% (increased from 2.7957% in 2014-15) on the average unimproved value above $150,000.
•	The owner of land which has an average unimproved land value greater than $275,000 will be assessed at $7,749.48 plus 4.4339% (increased from 4.0245% in 2014-15) on the average unimproved value above $275,000.

12.	Rural land will not be altered and will be assessed at a rate of 0.1468%

13.	This instrument revokes DI2014-185. DI2014-185 continues to apply to the period 1 July 2014 to 30 June 2015 inclusive.

Authorised by the Treasurer
Andrew Barr MLA