Supplementary rates are typically charged when a property owner undertakes a significant improvement or development on their land, such as building a new structure or subdividing the land. They can also be levied when the valuation of property changes due to a change of use of the land, objection to a property valuation or an error in the previous valuation.
The amount of supplementary rates are based on the increased value of the property resulting from the improvement or development. Where the valuation is determined to have decreased the rates may also decrease. Council calculates the supplementary rates charged on your property by multiplying the Assessed Annual Value (AAV) of the property by a rate of 'cents in the dollar'. These 'cents in the dollar' are determined as part of the Council's budget and are set in the Council's rating resolution each year.
When a supplementary rates notice is issued it replaces the previous annual rates notice for the property and the supplementary amounts are due on the remaining instalment dates for the year. The new instalment amounts issued may not be reflective of rates instalments in future financial years as the new period of valuation may cover a larger portion of the year than the remaining instalments. This is because the valuation change may be dated from the date of valuation, date of occupancy or back to 1 July of the current year if the change occurred prior to the beginning of the financial year.
Supplementary Rates Notice - Differential Rates
For the 2023-24 financial year, the City of Hobart has introduced a differential rating model to continue to address the disparity in rate collections from the 2021 municipal revaluation.
This model includes a differential rate for properties used as short stay visitor accommodation and vacant residential land. The introduction of this new differential rating is to retain housing stock, ensure contribution to Council services from owners of residential land used for commercial short stay accommodations and encourage development of vacant land.
Your supplementary rates notice will show how your rates have been calculated. If you don’t agree with the land use showing on your supplementary rates notice, you can lodge an objection with Council.
Notice of Objection - Differential Rates
If you have grounds to object to the differential rate showing on your 2023-24 supplementary rates notice, please use the following form:
A printable version of the form is also available: Notice of Objection - Differential Rates printable form(PDF, 201KB)
Every property in the City of Hobart is valued by the Office of the Valuer-General (OVG) which is a part of the State Government's Department of Natural Resources and the Environment.
The OVG issues three valuations, land value, capital value and assessed annual value (AAV). Council uses the AAV of the property to determine the rates payable. When the OVG values your property a Notice of Valuation will be posted to you. Your valuations are also listed on the top of your rates notice. Information about valuations including what to do if you think your property value is incorrect can be found on the Office of the Valuer-General website.
AAV is the approximate rental value of a property. The AAV cannot be less than 4 per cent of the capital value of the property regardless of the use or improvements on the property.
Please note that the OVG can determine your property AAV is more than 4 per cent of the capital value.