A valuation is an assessment of the market value of a property at a specific date.
For 2020/21, each property has been valued based on the current market conditions as at 1 January 2020. The valuation that appears on your rates notice will cover the period from 1 July 2020 to 30 June 2021. When looking at this valuation, you should consider the following factors:
- What prices have been achieved for properties sold in your area around January 2020?
- What price would you expect your property to sell for if it had been sold in early 2020?
- 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.
Please note that the 2020 Revaluation has been assessed based on 1 January 2020 levels of value which is pre-coronavirus (COVID-19) and therefore this has not been taken into account in assessing the valuations.
Land valuations (for rates, fire services levy and land tax purposes) are now the responsibility of the Valuer-General Victoria and as of 2019, are conducted on an annual basis rather than every second year. This means that new valuations will appear on the rates notices when they are issued in August each year. The Valuer-General's office believe that annual property valuations will more accurately reflect the current value of your property. Annual valuations are also expected to improve equity and transparency in the distribution of rates.
In the past, the valuations that appeared on Council rates notices were completed by Council's in-house valuers under the supervision of the Valuer-General Victoria. The valuations are now undertaken by contract valuers appointed by the Valuer-General Victoria. They are also responsible for the supplementary valuations and the objection process. The valuations for the 2020 rates notice have been completed by the valuation firm Value-IT Pty Ltd. These contractors were appointed for a three year term – from the 2019 revaluation up until the completion of the 2021 revaluation.
Property values are determined by analysis of property sales and rental evidence, which is then applied to the data on each particular property. Information is compiled on each property over time, through inspection, building and planning permits and real estate websites.
The valuer builds a profile of value levels for each different area/property type and this information is then applied to individual properties. The valuation also takes into account the different characteristics of each property such as land and building sizes, age, condition and development potential.
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, and
- Net Annual Value (NAV) – for residential properties is 5 percent of the CIV. For commercial properties it is an estimate of the net annual rental for the property but not less than 5 percent.
It is important to note that the Capital Improved Value (CIV) includes the Site Value (SV). The CIV for the 2020/21 revaluation comprises the current market value of the property based on January 2020 levels of value.
Increases in property values does not increase the total amount of money Council collects in rates.
Council’s annual budget determines how much we will generate in rate revenue in consideration of the rate cap. 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. Some ratepayers will pay more and some will pay less, depending on the value of their property relative to other properties in the shire.
Impact of rate capping
The changes to property valuations will not impact Council's rate capping. The Victorian Government’s Fair Go Rates system means Council can only increase average rates per property by 2.0 percent in 2020/2021.
In some cases, ratepayers will find that their rates bill has changed by more or less than 2.0 percent from the previous year. There are reasons this may happen, including the valuation of the property relative to the valuation of other properties in the shire, or the inclusion of other rates and charges (e.g. kerbside collection) that are not covered by the government’s rate cap policy. Only the general rate and the municipal charge have been capped at 2.0 percent for 2020/21. For more information, see Your rates and charges explained
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 any time throughout the year.
If you have any questions about your property valuation, 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.
Please note: Council will be the first point of contact for your enquiry. If we are unable to assist, the enquiry will be forwarded to the valuer appointed to undertake the valuation on behalf of the Valuer-General.
The State Revenue Office (SRO) uses the site value assessment on your rates notice for the purpose of assessing land tax. All enquiries relating to a Land Tax Assessment notice should be directed to the State Revenue Office in the first instance. If the enquiry relates to the valuation, the SRO will refer the matter to the appointed contract valuer.
Fire Services Property Levy
The Fire Services Property levy was introduced in 2012 in respect of levying all rateable and non-rateable land and became effective from 1 July 2013. The fire services property levy is charged against the capital improved valued of the property and will appear on the rates notice as an additional item, to be collected by Council and forwarded to the SRO. Objections to the fire services levy can be made by completing our Property valuations and fire services levy enquiry form