In assessing the value of your property for rate charges Council use the Capital Improved Value. This means the assessed value of your land plus improvements such as a house, shop, factory, fences or landscaping.
Council is required to value each property every two years taking market set price movements (ie. prices paid by vendors) into account. The most recent valuation being as at 1st January 2018.
Information about a property’s value is included on the rate notice issued by the council.
We follow the Valuation Best Practice standards. These standards have improved property data collection on a consistent basis throughout the State, including the use of computer assisted valuation methods. Consistency throughout Victoria means improvements in relation to market values, rate modelling, and a statewide picture of property values. You can learn more about this under Related information.
A valuation does not just occur. It is a process that is planned, and involves continued review of relevant property data and methodology which includes analysis of recent developments and trends in the property market. In simple terms, a valuation is an assessment of the amount a property would sell for on a set date in time. Values are determined by qualified valuers who gather and analyse a range of property information.
To work out how much a property is worth, the council valuer commences by analysing the latest property sales and rental data to build a profile of value levels for different suburbs and types of properties within the municipality. The analysed level of value is then applied to individual properties throughout the municipality. Land size, location, building value, plus the added value of a garage, garden, driveway and other improvements are also taken into consideration to determine the Capital Improved Value.
Valuation for rating purposes has become a continuous improvement process, where the valuers continually review data and the uniformity and accuracy of their models via statistical analysis. By the due date of the valuation, the valuers have already analysed the sales and rental details within a neighbourhood in order to test their valuation models. They then use a computer to calculate an individual properties valuation. The aim is to record correct data descriptions for each property, and then to maintain them with periodic site reinspections.
In addition all councils undertake ongoing supplementary valuation programs to amend a property’s specific characteristics, caused by new buildings, refurbishment, demolition, subdivision and site works.
Rates are based on Capital Improved Value of your property. Therefore, if you make changes such as erecting, extending, altering or demolishing buildings, or subdivide the land, our Valuers will have to revalue your property. This is called Supplementary Valuations.
A revaluation of properties in a municipality does not mean there will be a rise in the total rates collected by a council.
Rises in Consumer Price Index (CPI), council spending on infrastructure and the cost of delivering services to residents are factors councils consider when they determine how much rate revenue they need to collect from rates.
After the council has determined how much rate revenue it needs to fund its budgeted expenditure for the year, valuations are used as an apportioning tool to assess the rates payable for each individual property.
Stronger property values in a municipality will not always mean rate increases for property owners. Councils do not collect more rate revenue just because property values have risen. Rates will simply be redistributed according to shifts in property values that have occurred in different parts of the municipality. Rising property values usually result in the adjustment, by council, of a lower rate in the dollar.
Some ratepayers may experience a change in their rates depending on the type of property they own and where it is located. Changes in property values will vary across a municipality. These will be reflected in each property’s rate bill.
Information relating to making an objection to your valuation is provided on the rear of your council rate notice.
In the event that you wish to make an objection to your valuation, you are required to advise us of your intention within two months of the issue date noted on your rate notice. It is prudent to discuss your concerns with our City Valuer prior to lodging a formal written objection. The initial informal discussion may be beneficial to clarify specific issues. Once a formal objection has been lodged with council there are specific statutory processes that need to be addressed for the purposes of concluding and resolving the dispute. The objector will be required to produce relevant market evidence to support their claim of an amended council valuation.
The specific property data stored by council in respect to sale price and rental information is not available for public access. As the property information held by council is both sensitive and confidential, we do not distribute this data to the community.Furthermore, our valuers provide statutory valuation to council which does not incorporate a property advisory service on general market trends evolving throughout the municipality. The State Revenue Office use municipal valuations for the collection of land tax and the Fire Services Levy, and reimburse council for the cost of making the valuation.