What is the new valuation process?
In 2018 the State Government changed the Valuation and Land Act 1960 (Act) to centralise the responsibility for valuations with the Valuer-General Victoria. The Valuer-general Victoria is the State Government’s authority on statutory valuations. This means that local councils are no longer responsible for valuations.
Valuations will now take place every year (annually), rather than every second year. The annual valuations are provided to Council each year by the Valuer-General to use for rating purposes. Council then sends a formal valuation and rate notice to each ratepayer. The relevant date of the valuation now becomes the 1 January each year.
How are Properties Valued?
When working out the value of your property, the valuer acting for the Valuer-General will analyse property sales and rents, look at the type of property and its specific features.
The valuer then builds a profile of value levels for different locations and property types, guided by market sales and rental evidence. This information is then applied to individual properties, taking into account the different characteristics of each property.
Three valuations are returned for each occupancy, they are:
Capital Improved Value (CIV). CIV is the total market value of the property including land and all improvements.
Site value (SV). SV is the value of the land only. (Assuming vacant land with no buildings).
Net Annual Value (NAV). NAV for residential properties is 5% of the CIV.
NAV for non-residential properties is the annual market rental of the property less all necessary expenses required to maintain that property, except Council Rates. NAV cannot be less than 5%.
How do valuations affect your rates?
A standard rate in the dollar is applied to the Net Annual Value of a property to determine the rate payable for the property. Yarra Council does not have different rates for different property types.
What are supplementary valuations?
In certain circumstances, valuations must be performed between general valuations. These are known as supplementary valuations.
Supplementary valuations are required, for example, when properties are:
- Physically changed (alterations, new construction or demolitions)
- Portions sold off
- Changed by the Valuer-General
Supplementary valuations bring the value of affected property into line with the general valuation of other properties within the municipality. Values are assessed at the date of the general valuation currently in use.
Objecting to a valuation
If a ratepayer disagrees with the valuations attached to their property, they may object to the valuations.
Lodging an objection is a formal process contained in the Valuation of Land Act 1960. Ratepayers are required to complete the Notice of Objection Form and lodge it with Council within two months of the date of issue shown on the rate notice.
Objections lodged after the two month cut-off date cannot be considered.
The Notice of Objection Form can be obtained from Council by calling 9205 5555.
Do I still need to pay my rates by the due date?
Yes, you must still pay your rates by the due dates whilst your objection is being considered. Failure to pay rates by the due date may result in interest being charged.
What happens next?
Upon receiving an objection, Council will forward it to the Valuer-General who will forward the objection to the Valuer who has undertaken the valuation. The Valuer will contact you to discuss your valuation in further detail.
The Valuer has 4 months to review the valuation. A copy of the review must be provided to the Valuer-General.
The Valuer-General formally advises Council of the outcome once the review is completed. A Rate Notice (if required) with the new valuations and rate adjustments will be posted by Council shortly thereafter.