Commencing July 1, 2018, the Victorian Government centralised land valuation with the Valuer-General Victoria (VGV) and introduced annual valuations for Land Tax, the Fire Services Property Levy and Council rate setting purposes.
A valuation is an assessment of the market value of the property as at a specific date. This value is important as it establishes the value of a property relative to all other properties; this relativity determines how the rates burden is shared.
Property values are determined by analysis of market sales and rental evidence, which is then applied to the data on each property. Data is compiled on each property over time, through inspection, building and planning permits and other public sources. The information is then applied to individual properties, taking into account the different characteristics of each property. To ensure that the valuations are fair and equitable it is important that we have up-to-date property data.
Valuations – what do they mean
The three valuations shown are:
- Site Value (SV) is the market value of the land only
- Capital Improved Value (CIV) is the total market value of the land plus buildings and other improvements
- Net Annual Value (NAV) is either 5 per cent of the CIV or the current value of a property's net annual rental. For example, Residential properties are 5 per cent and Commercial/Industrial properties are gross annual rental less outgoings including insurances, land tax and maintenance costs
Supplementary valuations are sometimes performed between general valuations, when properties are altered, demolished or erected, or when they are amalgamated, subdivided, portions are sold off, rezoned or affected in some way that alters their value.
Supplementary valuations are made assuming the same valuation date as the current valuation (January 1, 2022) to ensure equity between properties. It may be made at any time during the year.
Objecting to a valuation
If you disagree with a valuation, you may object within two months of the Date of Issue on the rates or supplementary rates notice.
If you need help to understand your valuation and to decide if objecting is suitable, please contact our Customer Service Centre on 1300 002 642.
To proceed with an objection please complete an online objection. If you cannot complete the online form please contact our Customer Service Centre on 1300 002 642.
After receiving an objection the contract valuer representing the VGV will discuss the valuation with the objector and advise them of the outcome in writing. If an amendment is recommended this must first be approved by the VGV. If the objector is not satisfied with the decision, they may appeal to the Victorian Civil and Administrative Tribunal (VCAT), or the Supreme Court.
Objectors must still pay rates by the due date and failure to do so will result in interest being imposed.
State Revenue Office
The State Revenue Office uses site valuations to assess land tax. A person may object to the Site Value as shown on the Land Tax notice to the State Revenue Office provided they have not objected to the Site Value on any other rate notice issued in the last 12 months.
Further information on the use of valuations for land tax is on the State Revenue Office website.
The Commonwealth and Victoria Grants Commissions consider municipal valuations when making direct grants to the State and municipalities.
For more information about your rates please contact us on 1300 002 642 or [email protected]ov.au