From 1 July 2018 the State Government will centralise land valuation with Valuer-General Victoria (VGV) and introduce annual valuations for land tax, Fire Services Property Levy and council rate setting purposes.
Currently, land valuations are carried out by a valuation authority, either a council or the VGV on nomination by a council. A revaluation is completed in each of Victoria's 79 municipalities annually.
The changes recognise the VGV as the sole valuation authority to conduct valuations of all land in Victoria for rating and taxing purposes. These general valuations will now be conducted annually, although individual councils can 'opt out' of VGV centralisation until 2022. Up-to-date valuations across the state ensure rates are calculated regularly making the system equitable for all property owners and reducing the impact of significant valuation movements.
To work out how much a property is worth, the valuer starts by analysing the latest property sales, rental data, building permits and planning permits to build a profile of value levels for different areas and types of properties. This information is applied to individual properties throughout the municipality. Land size, location, house value, plus the added value of a garage, driveway and other improvements, are also taken into consideration.
Do more properties with higher values mean more money for Council?
No. The relationship between valuations and rates is often misunderstood. Property values do not determine the amount of funding Council receives from rates. Council do not need to collect more rate revenue just because property values have risen.
A percentage increase in rate revenue collections does not mean there will be an across the board increase percentage on the rate bill for every property. It means Council will receive an increased percentage in rate revenue from the entire property pool. Rates are then redistributed according to shifts in property values that have occured in different parts of the municipality.
Rising property values usually result in a lower rate in the dollar. You then multiply the rate in the dollar by the capital improved value of the property to get your general rate charge.
Capital Improved Value (CIV)
Moira Shire Council uses capital improved value for rating purposes, which is the value of the land and buildings minus any chattels and internal fittings.
Council conducts supplementary valuations every month, the turn around for these being returned to Council is between two to three months. Supplementary valuations pick up changes such as new buildings or improvements, land sold out of subdivision and new approved subdivisions.
Can I object to a valuation?
A formal objection to a valuation may be made in relation to the value of a property and also upon other grounds so specified in the Valuation of Land Act. Ratepayers may object to their valuation within two months of the issue of the rate notice. After receiving an objection, a valuer must discuss the matter with an objector, who, if not satisfied with a decision, may appeal to the Land Valuation Board of Review or the Supreme Court.
A ratepayer who is objecting to a valuation must still pay all rates that have been levied by the due date. Once the appeals process is complete, the rate notice will be adjusted to reflect any changes and any overpaid amounts will be credited on the new rate notice.