Annually, Council decides on the total rates revenue needed to deliver its works and services to its ratepayers and citizens.
Your property’s rates are determined by:
- The valuation of your property (determined by the Valuer-General Victoria)
- The rate in the dollar (determined by Council)
Valuations in Victoria
The Valuer-General Victoria is responsible for annual valuations of all property in Victoria for council rates, land tax and the fire services property levy.
The types of valuations used in Victoria are the Site Value (the value of the land only), the Capital Improved Value (the value of the land and all the improvements such as buildings) and the Net Annual Value.
Council uses the Capital Improved Value (CIV) for rating purposes. The CIV reflects the fair market value at 1 January each year.
Valuations on the Notice
The Valuer-General Victoria determines the valuation of all rateable properties as part of the annual general valuation. Each year, properties are revalued with a valuation date of 1 January. (The valuations shown on your Valuations & Rates Notice will be the valuation as at 1 January of the year of the Notice).
The Valuer-General Victoria then provides all such property valuations to Council to calculate the rates on each property. Council does this by multiplying your property’s Capital Improved Value (CIV) by the rate in the dollar.
From year-to-year, your rates will change as your property’s CIV and your Council’s rate-in-the-dollar changes.
Council applies a different rate in the dollar (called Differential Rates) to separate classes of property - residential use, farming use, commercial use, industrial use and vacant land use. Council sets the Differential Rates each year. Read more on the rates explained page.
How valuations are made
Valuations are made by certified practising valuers on behalf of the Valuer-General Victoria. Valuers must be qualified and have relevant experience.
The valuation principles and methodologies followed by Valuers are described in the Valuation Best Practice Specifications Guidelines.
They can be downloaded from the Valuer-General Victoria.
To make a valuation, Valuers collect and analyse data such as:
- Property sale prices and rentals
- Inspection records
- Property title and land-use records
- Planning permit/building permit records
- Planning (zones and overlay) information
This enables a level of value to be established and applied to each property within a group of properties that have similar characteristics.
Objecting to a rating valuation
If you disagree with your property’s valuation, as shown on your Valuation and Rates Notice, then you can submit an objection.