Property valuation includes three elements:
- Site Value (SV): the value of the land only, excluding improvements.
- Capital Improved Value (CIV): the market value of the property at the valuation date.
- Net Annual Value (NAV): the current value of a property’s net annual rent. This must be at least five per cent (5%) of the CIV for any property and is fixed at five per cent (5%) of the CIV for residential properties.
How valuations are determined
To determine valuations for land, buildings and rentals, inspections are conducted and market sales, rental data and commercial leases are analysed every year. Revaluations reflect changes in property values throughout the municipality, based on the suburb and type of property.
The next valuation comes into effect on 1 July 2021, based on the value of properties at 1 January 2021. Any change in individual property values can impact your rates.
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 2020 Council general valuation will be used for land tax in 2021.
Objecting to your property valuation
If you disagree with the valuation of your property you can discuss it with our Valuation team by calling us on 9524 3333. If you are still not satisfied you can request the prescribed objection form. Objections must be lodged and received on the prescribed form within two months of the annual rate notice date. (Refer to section 18 of the Valuation of Land Act 1960, as this may vary in some circumstances).
If your objection results in a change to your valuation, we will make an adjustment at that time and notify you by mail.
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 charges.
If a planning or building change has been made to a property, we may conduct a supplementary valuation between general valuations. Examples of such changes include the construction, demolition or extension of a dwelling, or the subdivision of land.
We also change valuations if a mathematical error has occurred.
We will notify you by mail if we conduct a supplementary valuation of your property, confirming any adjustments to the SV, CIV and NAV.
Do supplementary valuations affect rates?
We calculate rates payable at 1 July of each financial year, using the rate in the dollar (2.7691 per cent) and the current valuation of a property.
If you renovate or develop your property and increase its market value, we will revalue the property and reassess the rate charges from the date these were completed. For example, if you build a new dwelling and it is completed on 12 October, we will schedule a supplementary valuation in our next monthly batch on 1 November.
We would then use the new NAV to calculate rates, but only on the new valuation from 1 November. New rates and charges would then contain two pro-rata components:
|1 July to 31 October, NAV $50,000 x 2.7691 per cent (for 123 days of 365)||$466.55|
|1 November to 30 June, NAV $75,000 x 2.7691 per cent (for 242 days of 365)||$1,376.95|