Property valuations are used to calculate how much you pay in Council rates. Government legislation requires councils to assess the value of all rateable properties every two years, e.g.2010, 2012, 2014, 2016 etc. These values are then used in the setting of the rates.
How are valuations determined?
Valuations are prepared by contract valuers in accordance with the requirements of the Victorian Valuer General’s ‘Valuation Best Practice Guidelines’. The valuers are required to provide the following three valuations:
- Capital Improved Valuation (CIV) – the value of vacant land and any capital improvements (e.g. buildings).Note: CIV includes SV
- Site Value (SV) - The land’s market value ( without any improvements)
- Nett Annual Value (NAV) – Estimate of annual rental income property would generate
All valuations are prepared as at 1st January of the valuation year ( e.g. 1st January 2014). The valuer analyses sales of similar properties in the period of July 2012 to December 2013 to determine the market value of the property as at 1st January 2014 (in this example). The resulting valuation is then reviewed in January – March against sales occurring in that period to ensure the level is correct. Valuation of commercial properties is more complex and also considers the income generating capacity of the property.
The valuations are submitted to the Valuer General for review during the preparation phase and are required to be signed off as being ‘generally true and correct’.
The valuation on your rates notice is used for the two year period, regardless of movements in the property market – provided there is no fundamental change to the property. If there is a change to your property which results in a change to its value then a supplementary valuation will be undertaken. These changes include:
- Construction of new buildings
- Additions to buildings
- Improvements such as farm sheds, swimming pools etc
- Subdivision or consultation of land
- Realignment of property boundaries
- Change in land use
Supplementary valuations are prepared each month to ensure our data is up to date and you are paying accurate and fair rates. You will receive a supplementary rate and valuation notice if your property has undergone any of these changes.
What if I don’t agree with my valuation?
You can object to your valuation within two months of the date of issue of your rate and valuation notice.
If you would like to lodge an objection, complete the relevant valuation form assigned by property type:
• Valuation objection form and information - residential
• Valuation objection form and information - farm/rural
• Valuation objection form and information - commercial/industrial land(DOCX, 46KB)
You can return this form in person to one of Council’s customer service centres, or via mail. The details can be found on our contact us page.