Revaluations of all properties must be conducted every 2 years, according to Victorian Government legislation - the next revaluation year is 2018.
How your property is assessed
Independent valuers look at the land size, condition and location of your property and any improvements made since the last valuation.
They analyse similar properties that have recently sold or been leased in your area, and the current state of the property market.
Your property valuation amount
You can find your property’s valuation amount on your rates notice. We begin sending out rates notices at the end of July. If you believe that your new value is not accurate, you have 2 months to contact us to object.
How a revaluation affects your rates
Property valuations are used to calculate the amount you pay in rates.
In general terms, if your property has increased in value at a faster rate than other properties, your rates will increase at a higher proportion.
If your property value has dropped or risen at a slower rate than others, your rates will increase at a lower proportion.
The exact amount will depend on how much we decide to increase rates by each year.
Revaluations and total rates revenue
Revaluations do not mean we receive more money in rates. They only affect the way the total rates revenue is shared among property owners.
A revaluation redistributes the amount of rates that are paid based on a fairer and updated valuation.
How we calculate rates
We calculate rates based on each property’s Net Annual Value (NAV).
For residential houses, units and rural properties, the NAV is calculated as 5 per cent of the capital improved value (the value of the house and land).
For commercial and industrial properties, the NAV is the rent at which the property might reasonably be expected to be let from year to year.
In 2015, the Victorian Government introduced rate capping in the form of its Fair Go Rates System (FGRS).
The FGRS introduces an annual rate cap set by the Minister for Local Government, which controls rate increases for all councils during the financial year.
For 2017/18, the rate cap is set at 2 per cent.
Supplementary valuations are carried out in certain situations, in between the general revaluation. Examples of these situations include:
- subdivision of properties
- parcel of land sold off
- roads constructed
- buildings erected, demolished or physically altered
- properties amalgamated
Forecast your rates post-construction
If you’re constructing a home on vacant land, we will adjust your rates after building is complete, and after we have determined the value of the house and land, as well as the Victorian Government’s Fire Services Property Levy charge.
To help you estimate your future rates and charges payable, here are some examples:
- If your land is valued at $200,000 before construction and you build a home worth $200,000 in the MFB region, your total rates payable will change from $756 to $1407.
- If your land is valued at $200,000 before construction and you build a home worth $300,000 in the MFB region, your total rates payable will change from $756 to $1732.
- If your land is valued at $200,000 before construction and you build a home worth $200,000 in the CFA region, your total rates payable will change from $770 to $1434.
- If your land is valued at $200,000 before construction and you build a home worth $300,000 in the CFA region, your total rates payable will change from $770 to $1766.
Our Rating Strategy strikes a balance between competing priorities and helps provide revenue needed for ongoing financial stability.