What is differential rating?

Differential rates are where councils set different rates in the dollar for different categories of rateable land.

Properties are grouped into categories based on how the land is used, such as homes, farms or businesses and each category is charged a different rate in the dollar of the property’s Capital Improved Value (CIV).

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Your rates are worked out by applying your property’s value to the rate set for your property type, then adding the rate cap. Because each category has a different rate, two properties with the same value may pay different amounts if they are used for different purposes. See the graphic below.

Source: Calculating Rates