What is mixed development rating?
In general, Mixed Development rating allows for a property to receive a combination of Residential and Business rating categories (providing a form of rating relief - in most cases) due to the property having dual usage. The Local Government Act, 1993 provides for Mixed Development rating. A parcel of land occupied, or used solely as one building comprising a residence and a business, may be considered for Mixed Development rating, if it can be separately occupied for both business and residential purposes. The residential category and business category could be rated according to the proportion that each usage has to the whole of the property.
The Valuer General's Department supplies Council with a Mixed Development Apportionment Factor (MDAF), for land subject to Mixed Development rating. The MDAF is determined by calculating the proportion that the value of the business part bears to the value of the land as a whole. The result is expressed as a percentage. Rates and charges are apportioned according to the MDAF. If, for example, a parcel of mixed development land has an MDAF of 60%, rates and charges would be apportioned as Business 60% and Residential 40%.
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Land values and council rates
How is your land valued? The NSW Valuer General has published a fact sheet to help you understand the land valuation system.