What is the Parks Charge?

The Parks Charge is an annual charge levied on residential and commercial properties throughout greater Melbourne. The Parks Charge funds the development and management of a network of regional parks, garden, trails, waterways, bays and other significant recreation and conservation assets across the greater metropolitan area.

The Parks Charge dates back to the Board of Works and the Melbourne Metropolitan Board of Works Act 1958. It was then itemised as the Metropolitan Improvement Fund (MIF). In 1992/93 the MIF was renamed the Parks Charge.

As the water companies have a billing system servicing the greater Melbourne area, it saves the administrative costs of collection if the Parks Charge is collected by the retail water companies.

The Parks Charge is levied under Section 139 of the Water Industry Act 1994 (available from Information Victoria ) and is calculated by applying the Net Annual Value (NAV) of commercial and residential properties as determined by the relevant local Council. A minimum charge applies for a majority of ratepayers.

Parks Victoria is a State Government Statutory Authority that reports directly to the Minister for Environment.

WHERE DOES THE MONEY GO?

Parks Victoria uses most of the funds for maintenance, operation and development of the regional parks around Melbourne .

Some of the funds are distributed to Royal Botanic Gardens (including Cranbourne Botanic Gardens) and Zoos Victoria (managing Melbourne Zoo, Victoria's Open Range Zoo at Werribee and Healesville Sanctuary).

No money from the Parks Charge goes towards the Grand Prix. Albert Park is operated by the Australian Grand Prix Corporation for the duration of race week.

WHY PAY AGAIN FOR MORE THAN ONE PROPERTY?

The charge is property-based and the owner of the property is liable to pay.

WHY SHOULD A BUSINESS PAY?

• businesses benefit from general environmental improvements like other properties.
• businesses benefit from improved property value near parkland and rivers
• businesses benefit from an improved economic situation - Melbourne is attracting people and wealth.
• businesses benefit from tourism opportunities and economic flow-on effect.
• businesses comprise of people who enjoy surrounding parkland.

Why is the Parks Charge an annual charge?

The charge is collected annually in order to save the administrative cost of collecting more regularly. Parks Victoria is also able to invest some of the funds for use later in the year.

HOW IS THE CHARGE DETERMINED?

The valuation by local council determines the level of the charge. Most property owners pay the minimum charge that is currently $55.46.

Only properties valued by the Local Council over $332,096* will pay more than the minimum charge.

The charge increases periodically in accordance with the Consumer Price Index (CPI) to meet additional costs associated with managing parks and bays services in the metropolitan area.

DO PENSIONERS GET A REBATE ON THE PARKS CHARGE?

• State Government concessions are determined by the Dept. of Human Services and at present there is no concession on the Parks Charge.
• The retail water companies provide extended payment options for their water bill charges.

WHAT IF I REFUSE TO PAY?

The retail water company that sends the bill is required to collect the full amount payable. (s.143 Water Industry Act 1994)

Water companies will implement debt recovery in accordance with their policies which can include restriction of water supply (if water service provided) and interest can be charged (s.140)

On sale of the property, all outstanding debt will be deducted as part of the settlement process.

Settlement of property
When a purchaser buys a property, they are obligated to compensate the vendor a ‘pro-rata' equivalent of all rates and charges paid in advance. This is included in the Statement of Adjustment at the settlement date.

Rate Determination

Council Rates are based on Net Annual Valuation ( NAV). The Parks Charge is based on the Net Annual Value determined by Council. Legislation dictates that 1990 property values are used.

The current legislated level is 0.334% of Net Annual Value with a minimum annual charge of $55.46.

Properties valued (CIV) more than $332,096 pay more on a pro rata basis.
(ie. $500,000 properties pay $83.50, $1,000,000 properties pay $167).*

Parks Charge Calculator* (residential)

* approximate values to be used as a guide only

The NAV is based on the Capital Improved Valuation (CIV) - the value of the property.
Council use the CIV in two different ways to calculate rate valuations for residential and commercial rates.

Residential NAV

This is legislated to be 5% of Capital Improved Value (CIV). Effectively it means the Parks Charge is annually about one five thousandth or less of the property value.

Commercial NAV

This is more complicated. It is 5% or greater of the CIV, or council determined equivalent rent, adjusted for outgoings, whichever is greater. This means the valuations can best be understood by speaking to the valuations department of your local Council.

Land exempt from Parks Charge

• Land vested in the Crown, the Public Transport Corporation or the Minister administering the Education Act 1958 and used for public purposes (ie:- this could be a public primary school/high school)
• Land that is not rateable under Section 154 of the Local Government Act 1989 (ie:- Local Council Park)
• Recreational lands within the meaning of the Cultural and Recreational Lands Act 1963

WHY DON'T FARMS PAY?

Farms often complement the purpose (open space values) of parks and reserves.

According to the Water Industry Act.139 (6), non-residential, non-commercial and non-industrial land may be exempt. Effectively this means that agricultural land that is classified as a “farm” would be exempt. In the rural-urban fringe this is usually properties of 50 acres or more, although some intensive agricultural land has been classified as farm and therefore exempt from the Parks Charge by the water retail companies. Check with local council classifications.