It's safe to say that most people care about their rates bills. But how are rates calculated and why?
Your rates bill is made up of different parts. The 'general rate' is the foundation of the rating system. There may also be targeted rates, where ratepayers are charged for their
use of things such as kerbside rubbish collection, town water or sewerage. Fees and charges for specific services also apply.
The rating system is based on property valuations; your general rates (and sometimes other parts of your rates bill) are calculated on either the value of your land only ('land value'), or land and buildings ('capital value').
In centuries past, there was a good correlation between land held and earnings, so it was safe to use ownership of land (or better still, land and buildings) as a proxy for income. But in the modern world, that's no longer necessarily true.
Most modern economies revolve around the sale of services, which are not as tied to use of land. Professional offices will generate far more income per hectare than your average farm, for example. Some IT-based businesses may not need real estate at all. But rates are still calculated on property value, causing some anomalies.
