Background
The City of Karratha is seeking public comment on its proposal to implement a Differential Rates Model for the 2026/27 financial year.
The City collects rates from property owners each financial year to meet the Council's budget requirements. The rates enable the City to fund essential services like waste collection, roads, parks, libraries, and community facilities that benefit the whole community.
Not all properties are the same - so not all rates are either. Using a Differential Rates Model helps local councils ensure fairness in how rates are charged. By adjusting rates based on property type, land use and/or zoning, councils can better reflect the services provided to different areas.
The following rate categories have been determined:
- GRV Residential
- GRV Commercial/Industrial
- GRV Airport/Strategic Industry
- GRV Transient Workforce Accommodation/Workforce Accommodation
- UV Pastoral
- UV Mining/Other
- UV Strategic Industry
Essentially, differential ratings help build a stronger, more balanced community for everyone.
Rates are calculated using your property’s Gross Rental Value (GRV) or Unimproved Value (UV), set independently by the WA Government’s Landgate, and the rate in the dollar determined by Council.
Each year, the City of Karratha looks at:
- the services it provides (such as roads, waste, parks and community facilities),
- how much these services will cost,
- and what other income it receives (such as grants, fees & charges and investments).
After this review, the City has determined it will need to raise $69.5 million from property rates in the 2026/27 financial year to continue delivering local services.
Rates are calculated using rate in the dollar, which is simply the amount charged for each dollar of a property’s gross rental value (GRV) or unimproved value (UV). A minimum payment also applies, which means every property contributes at least a set amount, even if the calculated rate would be lower.
Properties valued using gross rental value (GRV) are proposed to increase by 4%, which works out to an average increase of around $1.75 per week for residential ratepayer for the 2026/27 financial year. Properties valued using unimproved value (UV) are proposed to increase by 6%. These increases have been carefully set to balance current cost‑of‑living pressures with the need to continue delivering reliable local services. On average across all categories rates revenue will increase 4.5%, which is below the Perth CPI of 4.6% (March 2026).
The proposed differential rates for the 2026/27 financial year are detailed in Table 1 below:
| Rate Type | Rate Category | Rate in $ | Percentage Increase | Minimum Payment |
| GRV | Residential | 0.058027 | 4% | $1,750.00 |
| GRV | Commercial/Industrial | 0.094754 | 4% | $1,750.00 |
| GRV | Airport/Strategic Industry | 0.116053 | 4% | $1,750.00 |
| GRV | Transit Worker Accommodation | 0.232106 | 4% | $1,750.00 |
| UV | Pastoral | 0.137837 | 6% | $367.00 |
| UV | Mining/Other | 0.153963 | 6% | $367.00 |
| UV | Strategic Industry | 0.232403 | 6% | $367.00 |
Table 1: 2026/27 proposed differential rates.
The City’s approach aims to absorb rising costs where possible through its property investments, grant funding, fees & charges and other revenue streams.
Ratepayers are invited to review the proposed Differential Rates Model and share their feedback by submitting a response before 27 May 2026. Community submissions will be considered by Council before a final decision is made and the model is submitted for Ministerial approval.
This public consultation period gives ratepayers the opportunity to review the proposed rates and provide feedback. Submissions will be reviewed at the Special Council Meeting on 2 June 2026, from here Council will decide if any changes are required. By providing your feedback, you help shape the collection of rates.
Review the proposed model and share your feedback
Read the Differential Rates Model and provide your submission by 27 May 2026.
