Council is committed to keeping things clear and transparent. The below information explains how your property's rate category affects your rates and why changes are made.
Your property is placed into a rating category based on how it's used. Here’s a simple breakdown of what each category means under the Local Government Act:
Residential
Land is classed as residential if:
It's mainly used for people to live in (e.g. houses, units), or
It’s vacant land that’s zoned for housing in a planning document (whether or not development approval is in place), or
It’s rural residential land (a home on a larger block in a rural area)
Farmland
Land is classed as farmland if:
It’s mainly used for a farming business – like grazing, dairying, orchards, bee-keeping, crops, or aquaculture (fish/shellfish farming), and
The farm is run for a significant commercial purpose, aiming to make a profit, even if a profit isn’t always made
You can read more about Council’s Farmland Rating Policy or apply for this category here:
Farmland Rating Policy and Application
Business
Land is classed as business if:
It doesn’t fall under the residential, farmland, or mining categories
Vacant land is also put into a category based on:
How it’s zoned or planned to be used, and
What’s around it (surrounding development and any buildings on it)
Mining
Land is classed as mining if:
Its main use is for coal or metal mining
Yes - starting from the 2023/2024 rating year, Council updated how rates are calculated. These changes were made to simplify the system and make it more consistent. Here’s what changed:
Residential categories were combined – Residential Town Centre and Rural Residential are now all under one simple Residential category
Business Light Industrial was merged – It’s now included in the main Business category
A new base rate structure was introduced – This replaced the old minimum rate setup, aiming to spread rates more fairly across all ratepayers
The previous rate structure had been in place since 1994, and with all the growth happening across the Shire, it was no longer working as well as it should. The changes were made to make the system fairer and more up to date. Here are the reasons why;
There were growing gaps between sub-categories, with some paying less than others for similar services (e.g. Residential Town Centre rates were lower than other residential areas)
Too many properties were on the minimum rate, getting close to the legal limit of 50% in some categories
Town Centre boundaries were outdated and tricky to keep up with, especially as new developments popped up
It became hard to define Residential Town Centre areas in new growth zones
Properties paying above the minimum rate were subsidising smaller lots and some growth areas
The legal definition of Rural Residential land caused confusion and led to inconsistencies in how rates were applied
The updated structure helps make the rating system clearer, more consistent, and better suited to our growing community.
The move to a base rate structure - along with simplifying the categories down to just Residential, Farmland, Business, and Mining - made the rating system fairer, easier to understand, and more efficient. Here’s how:
It stopped some ratepayers from unfairly subsidising others in growth areas, by evening out differences between Residential Town Centre, Residential, and Rural Residential rates
It spread the rate increase more fairly, so more people shared the cost, and everyone contributed the same base amount towards shared services
It helped avoid hitting the legal limit on the number of properties allowed on a minimum rate
It softened the impact of new land valuations on individual ratepayers by flattening out big jumps in rates
Overall, the changes helped create a more balanced and future-ready rating system for the whole community.
The rating categories are used purely to calculate how much each property pays. When Council tested the new base rate system, the results showed that keeping a separate Rural Residential category didn’t make much difference to how rates were spread.
That’s because the base rate structure already flattens out big differences between properties — including the impact of updated land values. So, adding extra sub-categories (like Rural Residential) wasn’t needed to make things fairer. The simpler structure worked just as well without it.
No – the zoning of your land is what decides how it can be used, not the rating category.
The change in rate categories is just about how your rates are calculated. It doesn’t change your land’s zoning and won’t affect what you can or can’t build or use the land for.
No – the rate category is only used to calculate your rates. It has nothing to do with how your property is valued.
The NSW Valuer General is responsible for valuing land, and they use a range of other factors to work that out. You can find more details on how land is valued by visiting the NSW Valuer General’s website.
Yes – Council carried out community consultation during April and May 2023.
This included:
A letter sent to all ratepayers
Posts on social media
A Community Forum presentation
Drop-in sessions and online info sessions
You can find more details, including a summary of the feedback we received via the Rate Structure Review Engagement Snapshot.
Your land might be eligible for the Farmland category if:
It’s one parcel of rateable land (valued as one property), and
Its main use is for farming — this includes things like grazing, dairying, pig or poultry farming, orchards, bee-keeping, growing crops or vegetables, forestry, aquaculture (like fish or shellfish farming), or a mix of these activities
The farming has a genuine commercial purpose and is being run to make a profit on an ongoing basis – even if it doesn’t always make money
You can find the full criteria and apply for farmland rating via the Farmland Rating Policy and Application Form.
No — the changes to the rate structure were made to create a fairer, simpler, and more efficient system that also meets legal requirements.
Council is still committed to protecting rural living and what makes Wollondilly special. We will continue to support only sustainable local planning.
Remember, rate categories do not affect zoning, development, or how land can be used.
Rates are based on the value of your land, which is provided by the NSW Valuer General, plus a fixed base amount that’s the same for all properties. The land values are updated every three years.
Here’s an example for a Residential property:
Your rates notice includes:
The annual rates
Domestic Waste Management Charge
Stormwater Management Charge
By law, Council must charge for domestic waste services for every property that can use this service. So, if your property is residential and in a serviced area, you’ll see a domestic waste management charge. For vacant land, a smaller domestic waste availability charge applies.
The stormwater management charge applies to all residential and business properties where the service is available. However, pensioners, rural properties, and vacant land don’t have to pay this charge.
Further rating information Council’s Revenue Team can be contacted via 4677 8282 or council@wollondilly.nsw.gov.au
Wollondilly Shire Council acknowledges the Dharawal and Gundungurra peoples as the Traditional Custodians of the land, honouring their enduring cultural and spiritual connection to Country and recognising their ongoing contribution to the Shire.
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