How property is valued

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:

  • 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%. 

Is this a new valuation process?

In 2018 the State Government changed the Valuation and Land Act 1960 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 now take place every year (annually), rather than every second year. The Valuer-General provides the annual valuations to us each year to use for rating purposes. Yarra Council then sends a formal valuation and rate notice to each ratepayer. The relevant date of the valuation is the 1 January of each year. 

COVID-19 and valuations

Rates assessment notices for 2020/21 will be based on valuations that were current prior to the pandemic. Any market changes occurring now, or in the future, due to COVID-19 will be applicable to future revaluation cycles and reflected in subsequent rates assessment notices.

The 2020 general valuation has a relevant date of 1 January 2020 and is therefore based on market conditions at, and immediately before, that date. There is no basis under the Valuation and Land Act for valuers to consider COVID-19 impacts when assessing statutory values for the purposes of the 2020 general valuation.

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)
  • Subdivided
  • Consolidated
  • Portions sold off
  • Rezoned
  • 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 us 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.

How to object

  1. Download and complete the correct Notice of Objection form:
  2. Include a contended figure on the Objection Form.
  3. Provide reasons why you believe the current valuation is incorrect.
  4. Include supporting evidence
  5. Lodge the completed Objection Form with Yarra Council within two months of the date of issue shown on the rate notice.

You can also obtain the Notice of Objection Form by calling us on 9205 5555 or emailing info@yarracity.vic.gov.au.

Find out more about objecting to a valuation on the Victorian Government's Land Use Victoria website. You can also contact the Valuer-General Victoria at rating.valuations@delwp.vic.gov.au or on 136 186.

Do I still need to pay my rates by the due date?

Yes, you must still pay your rates by the due dates while your objection is being considered. Failure to pay rates by the due date may result in interest being charged.

What happens next?

When we receive an objection, we will forward it to the Valuer-General.

The Valuer-General will refer the objection to a valuer who will review the valuation and consider any information provided on your objection form. The valuer will also contact you to arrange a mutually convenient time to inspect the property,

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.

Any rate changes will occur after the Valuer-General provides us with the result of the valuation objection review. We will send you a new rate notice once the information becomes available.