Annual Valuations

What has changed?

The Valuer-General is now responsible for the undertaking of valuations (for Council rates, fire services levy and land tax purposes) in Victoria.  These valuations are now undertaken annually whereas previously they were undertaken every two years.

Why has it changed?

Valuations will now be annual (annual rather than biennial), more accurately reflecting any recent change in values.

Centralising the valuation function with the Valuer-General will improve efficiency, consistency, transparency and cost effectiveness.

How will the change affect my rates?

Revaluations do not impact on Councils’ revenue which is determined by their budget process.  A revaluation simply reapportions the rate burden.  Annual valuations, rather than biennial valuations, are expected to improve equity and transparency in the distribution of rates.

How will enquiries and objections be handled?

The first point of contact for Council Rates & Valuations enquiries is the local council who issued the valuation and rates notice.   Council will deal with the enquiry in accordance with their customer service charter.  If they are unable to assist the ratepayer with their query, they will forward the enquiry to the valuer appointed to undertake the valuation on behalf of the Valuer-General.

Similarly, the first point of contact for Land Tax Assessment enquiries is the State Revenue Office (SRO) who issued the notice.  The SRO will deal with the initial enquiry in accordance with their customer service charter.  If the SRO are unable to assist they may forward the query to the valuer appointed to undertake the valuation on behalf of the Valuer-General. 

A person aggrieved by a valuation may object to that valuation in accordance with the Valuation of Land Act 1960.

Will yearly valuations increase land tax revenue?

Land tax revenue is determined by the State Government. Undertaking annual valuations means land values will be current. In a rising/falling property market, taxpayers may have a changing liability and will see their liabilities increase or fall every year instead of every second year.

Why has my Valuation decreased while my Rates have increased?

The total amount the Council has estimated to fund operational running costs and complete projects and policies is divided into the total assessed CIV of rateable properties within the municipality to create a ‘rate in the dollar’.  The result of this could be that your CIV has decreased but the rate in the dollar has increased by a higher proportion which may result in an overall increase in the rate liability calculated.

Can I object to my Valuation?

Ratepayers are not able to object to their Rates however they are able to object to their valuations. Please contact Council to discuss

Rate Capping

There is no connection between rating capping and an individual’s rates.  Rate capping applies to the total rate revenue for the whole municipality.

In some cases, ratepayers will find that their rates bill has changed by more or less than the current rate cap from the previous year.  There are reasons this may occur, including:

  • The valuation of the property has increased greater than the valuation of other properties in the municipality;
  • The inclusion of other rates and charges not covered by the Government’s rate cap policy; have increased
  • The application of any differential rate by council.

Valuations

What is a Valuation?

A valuation is an assessment of the market value of a property, at a specific date and in accordance with the Valuation of Land Act 1960 legislation and the Valuation Best Practice Specifications.

Your property valuation is shown on your rate notice and rates are calculated on the Capital Improved Value (CIV) method, which is based on the estimated market value of the property including any improvements.

How are Valuations calculated?

The Valuer-General is now responsible for the undertaking of valuations (for Council rates, fire services levy and land tax purposes) in Victoria.  These valuations are now undertaken annually whereas previously they were undertaken every two years..

Revaluations yearly provides the opportunity for all valuations to be reviewed, taking into account the latest market evidence (sales and rents) for each property sector and district within a municipality and adjustments made to property valuations where appropriate.

This information is applied to individual properties throughout the municipality. Land size, location, house value, plus the added value of a garage, garden and other improvements are taken into consideration.

How will the new Valuation affect my Rates?

Rates are based on the combination of two variables, the rate in the dollar, and the valuation.  The rate in the dollar is multiplied by the valuation to determine your rates.

If the rate in the dollar remained constant, those properties which increased in value above the average increase would pay higher rates.  Conversely, those properties which decreased in value would pay lower rates.

If the rate in the dollar increased and all valuations decreased, the rates payable may increase.

If the rate in the dollar increased and all valuations were to be increased by the same percentage, the rates payable will increase.

Why has my Valuation changed this year when it changed last year?

Valuations are now carried out annually at 1 January each year.

Why has my Valuation decreased while my Rates have increased?

If the rate in the dollar increases and all valuations decrease, the rates payable will increase. 

The total revenue required has been determined by the budget process.  This along with the valuation is used to determine the rate in the dollar.  Where valuations may all decrease, if the rate in the dollar increases, then the rates payable will increase.

The property market has declined, why hasn’t my valuation decreased?

Valuations are relevant as at 1 January of each year.  These valuations are based on sales activity leading up to and close to this relevant date.  Any sales activity after this date may be considered but has less weight than the sales leading up to the date.  If market prices drop after the relevant date (1 January) this has no impact on the valuations returned.  It is approximately 8 months after the relevant date before rate notices are issued and market conditions can change markedly in this time.

What is a Supplementary Valuation?

A Supplementary Valuation is an amended Valuation completed on a property

  • A supplementary valuation is conducted as a result of one of the following:
  • Any change to the physical characteristics of the property
  • Any change to the use of the property
  • Where the property is now occupied by a charitable or religious institution and is no longer rateable, or the property is owned and occupied by a statutory body.

Land Tax and Objections

Enquiries are VGVs responsibility?

The Valuer- General Victoria (VGV) is the valuation authority for municipalities in Victoria.

As the valuation authority, the VGV is responsible for returning annual valuations to Council for rating purposes.  The valuations are also used by the State Revenue Office (SRO) for land tax assessments.

Although VGV is the valuation authority, the SRO remains the rating authority for land tax and are responsible for issuing land tax assessment notices and taking initial enquiries from ratepayers.

The SRO may direct valuation enquiries to the appointed valuer where they are unable to assist.

What is a Valuer-General Adjustment?

An adjustment arising from a successful objection to a previous valuation which has been approved by the Valuer-General Victoria.

What if I don’t agree with the Valuation?

If a ratepayer is aggrieved by a valuation they may object by completing and lodging the Prescribed Form within two (2) months of the date of issue shown on the Land Tax Assessment Notice. 

Objections received after this date will not be considered.

It is advisable that the ratepayer first discuss their concerns with the State Revenue Office (SRO).  If the SRO is unable to assist they may forward the enquiry to the valuer appointed to undertake the valuation on behalf of the Valuer General.

I have lodged an Objection but I’m still awaiting the result?

The process may take a few months before the ratepayer is advised.

The ratepayer may contact the appointed valuer to check the progress of an objection.  Objections are required to be approved by the Valuer-General.

How do I Object / Lodge an Objection?

If a ratepayer is aggrieved by a valuation they may object by completing and lodging the Prescribed Form within two (2) months of the date of issue shown on the Land Tax Assessment Notice. 

The Prescribed Form is available from the SRO or alternatively at:

  • State Revenue Office.

    Land Tax Enquiries

    All enquiries relating to Land Tax Assessment notices should be directed to the State Revenue Office in the first instance.  If the enquiry relates to the valuation, the SRO may refer to the appointed valuer.

    Further information including the Land Valuation Objection Form is available at:

  • State Revenue Office

    How do I Object to Council's Valuation?

    If a ratepayer is aggrieved by a valuation they may object by completing and lodging the Prescribed Form within two (2) months of the date of issue shown on the Rate Notice. 

    The Prescribed Form is available from Council or alternatively on link below

  • Objecting to a Council valuation

Does the Valuer-General Review the Objection?

Objections are processed by the appointed valuer.  Once the valuer has made their determination a recommendation is forwarded to the VGV for review and confirmation.

Q and A for Valuations

 

Contact Us

Frankston City Council
Customer Service Team
30 Davey Street
Frankston 3199
P. 1300 322 322
E. info@frankston.vic.gov.au

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