Property valuations explained

To determine property values throughout the municipality, a qualified valuer is appointed by the Valuer General Victoria.

The valuer assesses the amount a property would sell for at a specific date. The latest property sales data, rental data, land type, buildings and their condition, as well as other property improvements are analysed as part of the valuation process.

A profile of value levels for each area and property type in the municipality is then constructed and applied to individual properties.

The annual rate notice provides three types of valuations and a brief explanation of each is as follows:

• Site Value = Value of the land only (excluding all improvements)
• Capital Improved Value (CIV) = Total market value of the land including buildings and all other improvements.
• Net Annual Value (NAV) = Current value of a property’s net annual rent. By law, NAV must be at least 5% of the CIV (EG: Gross annual rent less all outgoings)

If there are any changes to the physical characteristics of a property, it may become subject to a supplementary valuation by Council’s contract valuer.

Physical characteristics include, but are not limited to:

• New house, shop, factory etc
• Extension to current house, shop, factory etc
• New outbuildings, carports, garages, etc
• Subdivision of land
• Acquisition of adjoining land
• Disposition of some land
• Change in use of part of the property
• Fire damage

A supplementary valuation may also be undertaken if it has been identified that there was an incorrect data element against the property which has an impact on the valuation, for example:

• Incorrect area of land or building
• Quality of land or building

When a supplementary valuation is completed, a pro rata supplementary rate is levied for the remainder of the current rating year.

A person aggrieved by a valuation of any land made by or for Council may lodge a written objection with Council on any one or more of the grounds set out in Part III, Division 3, Section 17 of the Valuation of Land Act (VLA) 1960.

In the first instance, objections or queries regarding the valuation or rates should be directed to Council’s customer service officers who will be able to provide general information, and if necessary direct the matter to Council’s Revenue Services team for review and advice. 

If you wish to proceed with the lodgement of an objection, prescribed forms can be obtained from the Revenue Services team or objections can be lodged directly with the Valuer General Victoria at www.ratingvaluationobjections.vic.gov.au/.

A valuation objection must be lodged with Council on the prescribed form within two months of the initial issue of the Rate and Valuation Notice.

Closing dates for valuation objections on supplementary valuation notices will vary and information regarding close dates should be obtained from the Revenue Services team.

Upon receipt of an objection, Council will refer it to its contracted valuer, who will consult with the objector and decide whether an adjustment is necessary.

If the objector has not heard from Council after four months of lodging a formal valuation objection, the objector will need to assume that the objection has been declined. The objector will then have the right to make an application for review to VCAT for a five month period.

If an objector is dissatisfied with the valuer’s determination, the objector has 30 days from the date that they were issued with the recommendation or disallowance notice to make an application to VCAT for review.

The lodgement of an objection does not prevent the recovery of any rate or charge or the charging of interest.

All rates must still be paid in accordance with the legislative payment dates. Any alteration to this requirement must be in writing from Council.

More information can be found at www.dtpli.vic.gov.au/property-and-land-titles/valuation/council-valuations