Valuations

Overview

The State Government has amended the legislation relating to the valuation of properties. Your property is now valued every two years.

Property valuations are currently based on a level of value as at 1 January 2016.

Three valuations

There are three valuations made on a property:

  • Site value (SV) —  the value of the land only, excluding any improvements.
  • Capital improved value (CIV) — the market value of the property at the date of valuation (ie. what it would it have sold for on that date?).
  • Net annual value (NAV) — the current value of a property’s net annual rent. This is the gross annual rental less all outgoings excluding rates. In accordance with legislation, this must be at least five per cent of the CIV for any property. For residential properties, it is fixed at five per cent of the CIV.

Valuation process

Our contract valuers conduct inspections and analyse market sales, rental data and commercial leases every two years to develop levels of value for land, buildings and rentals. This information is then applied to individual properties, taking into account the different characteristics of each property.

The next valuation will become operative on 1 July 2018, based on the value of properties at 1 January 2018.

Each revaluation reflects shifts in property values throughout the City, on the basis of suburb and on the type of property, including residential, commercial and industrial.

This change in individual property values can have an effect on an individual ratepayer’s rates.

Objections to your property valuation

If you disagree with the valuation of your property, you can object.

Call us first

If you consider the valuation and/or associated data of your property to be incorrect, contact us on 9524 3333.

If not satisfied, make a written objection

If you are still not satisfied, a written objection on the prescribed form must be received by us within two months of the date of the annual rate notice. (Please refer to section 18 of the Valuation of Land Act 1960, as this may vary in certain circumstances.)

If an objection results in an alteration to your property valuation, an adjustment will be made at that time and a notification will be mailed.

Please note: even if you lodge an objection you still need to pay the rates by the due date(s). Failure to do so will result in interest being charged.

Supplementary valuations

In certain circumstances supplementary valuations or ‘supps’ will be conducted between general valuations. These occur when building or planning changes have been made to the property, for example, the erection, demolition, extension or renovation of a dwelling or subdivision of land.

Valuations will also be changed in the instance of mathematical errors.

Supplementary valuations bring the value of the affected property into line with the general valuation of other properties in the City.

If your property has undergone a supplementary valuation, you will receive written notification of this and any adjustments to the standard value, capital improved value and net annual value.

How a supplementary valuation affect rates

Rates payable are calculated at 1 July of a financial year using the rate in the dollar (2.9033 per cent) and the current valuation of a property.

If you substantially renovate or redevelop the property and increase its market value, we will reassess the rate charges from the date the renovation was completed, say 31 August.

This new NAV would then be used to calculate rates, but only on the new valuation from 1 September.

The new rates and charges would then contain two pro-rata components:

1 July to 31 August, NAV $25,000 x 2.9033 per cent (for 62 days of 365) $123.30
1 September to 30 June, NAV $40,000 x 2.9033 per cent (for 303 days of 365) $964.10
Total $1,087.40

Land tax

The State Revenue Office (SRO) uses valuations to assess land tax under the Land Tax Act 1958.

The site value of land returned at the 2016 Council general valuation will be used for land tax in 2017 and 2018.