ACT Rates Assessment Notice: Understanding Land Value and What to Do If Your Bill Is Too High

Your rates notice arrived and the number is higher than last year — again. Canberra property owners have seen steady increases as land values climb, and for pensioners on a fixed income, each jump lands harder. Understanding how the ACT calculates your rates bill is the first step to working out whether you're paying more than you should.

How ACT Rates Are Calculated

Unlike most Australian states where rates are set by local councils, the ACT has no separate municipal councils. The ACT Revenue Office administers all general rates territory-wide under the Rates Act 2004.

Your general rates bill is calculated using the Average Unimproved Value (AUV) of your land — not the value of your house, renovations, or improvements. The AUV is a rolling multi-year average of unimproved land valuations, designed to smooth out sudden spikes. Even so, sustained property market growth in Canberra means the AUV trends upward over time, pulling your rates bill with it.

The formula uses marginal rating factors applied to bands of AUV, plus a fixed charge per residential property. The ACT Government sets both the rating factors and the fixed charge each financial year through the budget.

What's on Your Rates Notice

Your quarterly notice from the ACT Revenue Office bundles several charges:

• General rates: the AUV-based charge, which is the largest component and the one eligible for the pensioner rebate
• Police, Fire and Emergency Services Levy (PFESL): $458 in 2026/27 (pensioners can claim a $133 rebate)
• Safer Families Levy: $70 in 2026/27, no rebate available
• Waste management charges: separate statutory fees, outside the rebate calculation

One change for 2026/27: the $250 Health Levy that was introduced in 2025/26 has been removed. If your bill still shows a health levy line, something is wrong.

Why Rates Keep Rising

Two forces push ACT rates up:

1. Land values: as Canberra's property market grows, unimproved land values increase. The AUV smoothing mechanism delays the impact but doesn't prevent it. Suburbs like inner-south Canberra have seen land values climb steadily over the past decade.

2. Rating factor adjustments: the ACT Government's ongoing tax reform, phasing out stamp duty and increasing rates as a share of revenue, means the rating factors themselves can increase year to year, independent of your land value.

Even if your land value stayed flat, a change in rating factors would still move your bill.

If You Think Your Valuation Is Wrong

You have a formal right to challenge the unimproved land value used to calculate your rates. Here's the process:

Step 1 — Check your valuation notice. Your annual land valuation notice is separate from your rates notice. Review the unimproved value figure and compare it to what you believe the land alone (no buildings) would sell for.

Step 2 — Lodge a formal objection within 60 days. Under Part 10 of the Taxation Administration Act 1999, you must lodge a written objection with the Commissioner for ACT Revenue within 60 days of the valuation notice's issue date. State the specific grounds — for example, comparable land sales in your street that suggest a lower value. Phoning Access Canberra to complain doesn't count and doesn't pause the deadline.

Step 3 — Commissioner's determination. The Commissioner reviews your objection and issues a written decision, either allowing it (adjusting the value) or disallowing it.

Step 4 — ACAT review if disallowed. If your objection is rejected, you can apply to the ACT Civil and Administrative Tribunal within 28 days for a merits review. ACAT re-examines the decision from scratch. Filing fees apply, though concession card holders can apply for a fee waiver.

A valuation objection is about land value, not concession eligibility. Even if you win a lower valuation, the pensioner rebate rules stay the same — the rebate just applies against a smaller rates bill.

Rebates and Deferral Still Apply

A high rates bill doesn't change your eligibility for assistance. If you hold a Pensioner Concession Card or DVA Gold Card:

• The general rates rebate knocks 50% off your general rates charge, capped at $750 per year
• The PFESL rebate reduces the levy by $133

If you're 65 or older with at least 75% equity in your home and don't hold a qualifying card, the rates deferral lets you postpone payment entirely, with simple interest accruing against the property until it's sold.

Both pathways apply regardless of how high your rates bill is — the rebate cap doesn't scale with the bill, but the deferral has no cap at all.

Getting the Full Picture

If your rates bill feels unmanageable, it's worth checking whether you're receiving every concession you're entitled to. The ACT rates rebate and deferral guide walks through the eligibility check, co-ownership calculations, and the deferral decision — so you can see exactly where your bill stands after all available relief is applied.

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