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 2023, based on the value of properties at 1 January 2023. 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 2022 Council general valuation will be used for land tax in 2023.
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 03 9524 3333. Please note, valuations are a separate issue to any queries you may have regarding increases to rates.
Making this initial enquiry before lodging a formal objection could provide a clearer understanding of your valuation without going through the objection process, saving time and effort for all involved.
You will be provided with an initial review of your concern(s) by a Council officer or appointed valuer to determine if we can resolve these issues without having to make an objection. This review aims to provide you with relevant information to assist you in determining if you need to submit a valuation objection.
If you still disagree with the valuation after considering the reasons for the valuation, you can then lodge an objection to the valuation. The objection must be lodged within 2 months of the issue date of the valuation notice. If you are objecting to a valuation, you must state the grounds on which the objection is based. You should provide as much supporting evidence as possible with your objection (eg. comparable sales).
Objections to a valuation shown on your council Rate and Valuation notice can be lodged electronically via the Valuer-General Victoria Objection Portal
When using the rating valuation objections portal you will need your Rate and Valuation Notice on hand to provide the following information:
- Assessment Number
- Date of Issue of Notice
- Site Value (SV)
- Capital Improved Value (CIV)
- Net Annual Value (NAV)
To find out more on the rating valuation objection process, download the Department of Environment, Land, Water and Planning's Submitting a rating valuation objection fact sheet.
Alternatively, you may request a pro-forma objection form which can be emailed (or mailed) to you. The completion of the objection pro-forma will ensure compliance with the Valuation of Land Act 1960 and will assist in discussions with the valuer to identify areas of contention. Please email, post or deliver your completed objection form(s) and attachments back to Council within the 2 month statutory time frame.
If your objection results in a change to your valuation, we will make an adjustment at that time and notify you by mail.
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 (2.4565 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, the valuation of the property will be re-assessed in the next supplementary batch ie. 1 November.
We would then use the effective date of the supplementary valuation (1 November) and the new NAV to calculate rates. New rates and charges would then contain two pro-rata components:
|1 July to 31 October, NAV $50,000 x 2.4565 per cent (for 123 days of 365)||$413.90|
|1 November to 30 June, NAV $75,000 x 2.4565 per cent (for 242 days of 365)||$1,221.50|