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 Lands 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?
Certified valuers are contracted by Frankston City to complete the revaluation process in accordance with statewide Valuation Best Practice Specifications, which are updated for each revaluation. The valuer will gather and analyse a range of property information. The valuation process is a complex one, involving continual reviews of data and ongoing analysis of developments in the property market.
Revaluations every two years provide 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.
Valuers are required to assess three bases of value:
Site Value (SV)
The market value of the land only.
Capital Improved Value (CIV)
The total market value of the land plus buildings and other improvements.
Net Annual Value (NAV)
The current value of a property's net annual rent (gross annual rental minus all outgoings such as land tax, building insurance and maintenance costs but excluding council rates). The NAV must be at least five per cent of the CIV. Although Council does not use this value for rating purposes it is a legislative requirement and may be used by other authorities for their rating purposes.
When are Valuations done?
Commencing in the year 2000, all properties throughout Victoria are now revalued by councils at the same time every two years (as at 1 January). This follows reforms to property valuation practices in Victoria, by the State Government, including guidelines known as Valuation Best Practice (VBP). Adoption of Valuation Best Practice standards by councils has resulted in improved property data collection on a consistent basis throughout the State.
The State Revenue Office uses site values for the purpose of assessing land tax under the Land Tax Act 2005. The site value of land returned at each council general valuation, which will appear on council rate notices for the next two financial years, will be used for land tax in the same period. Therefore, any objections against this general level of valuation on your land tax assessment must be made direct to the State Revenue Office within the time limits prescribed under the Valuation of Land Act 1960.
Right of Appeal / Objections
Section 16, 17 and 18 of the Valuation of Land Act 1960 allows any property owner to object to their valuations. The level of the valuations is the "Prescribed Date" as indicated on your current Rate Notice and is effective from the "First Used" date.
To initiate Council's objection process, please contact Council to discuss your valuation queries. If your issues cannot be resolved, Council will provide you with a prescribed objection form. This form must be completed and returned to Council within two months of the "Date of Service" on your Rate Notice and should state the grounds on which you are objecting.
If you object to a valuation you still must pay rates by the due date. Failure to pay rates by the required date generally results in interest and legal fees being imposed.
Please contact Rates and Valuations Department, phone 1300 322 322.
In certain circumstances under the Valuation of Land Act 1960 - Section 13DF valuations may be performed between general valuations. These are known as supplementary valuations. They are required when properties are:
- Physically changed - for example, when buildings are altered, erected or demolished; OR
- Amalgamated, subdivided, portions sold off, rezoned or are affected by road construction.
Values are assessed at the prescribed date of the general valuation currently in use.
Supplementary valuations are made when required, usually on a regular basis, such as quarterly or monthly. Council will send out a supplementary valuation notice, which will state the revised valuations and subsequent rate adjustments..
Q and A for Valuations
Frankston City Council
Customer Service Team
30 Davey Street
P. 1300 322 322
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