A valuation is an assessment of the market value of a property at a specific date.
The Victorian Government requires Council to revalue your property every two years. For 2016/17, each property has been valued as at 1 January 2016. The next general valuation will be completed in 2018.
The valuation on your current rates notice took effect on 1 July 2016 and will be shown on your rates notice. When looking at this valuation, you should consider the following factors:
- What prices have been achieved for properties sold in your area around January 2016?
- What price would you expect your property to sell for if it had been sold in early 2016?
- Have you recently made improvements to your property or built on the land?
Not all properties in the shire increase in value at the same rate. A general valuation may result in the rates for some properties going up whilst others decrease. As a result, some ratepayers will pay more rates than last year and some will pay less.
Property values are determined by analysis of property sales and the type of property and its features.
The valuer builds a profile of value levels for different areas and property types and this information is then applied to individual properties, taking into account the different characteristics such as land and building sizes, age, and the condition of each property.
There are three valuations shown on your rates notice, these are:
- Site Value (SV) – is the value of the unimproved (vacant) land
- Capital Improved Value (CIV) – is the value of the land and the buildings
- Net Annual Value (NAV) – is a minimum of 5% of the CIV. For commercial properties it is the net annual rental.
It is important to note that the Capital Improved Value (CIV) already includes the Site Value (SV).
Your rates are calculated on the value of your property; however any increase in property values does not produce additional income for councils.
Council’s budget determines how much it needs to generate in rate revenue. Council calculates the amount of rates to be collected across the number of properties in the shire based on the budget. It then uses property values to apportion the amount of rates paid by each ratepayer.
A supplementary valuation is when the value of the property has been altered since the time of the existing valuation, for example the erection of a new dwelling on previously vacant land, additions to an existing house or fire damage to a dwelling.
Supplementary valuations bring the value of the affected property into line with the general valuation of other properties within the shire. Values are assessed at the date of the general valuation currently in use. A supplementary rates notice may be sent at anytime throughout the year.
If you are concerned about your valuation or would like more information, you can:
An objection must be made within two months of the issue date of the annual rates notice. If you object to your valuation or supplementary notice, you must still pay your rates by the due date or you may incur interest charges. Any reduction in rates caused by an objection will then be credited to your account.