What are “Rating Valuations” and what do they represent?
- The Rating Valuations, otherwise known as “Statutory Valuations”, reflect a "fair market value" established at the 1st January every year (for example, 1st January 2020, 1st January 2021 and so on).
- This “fair market value” reflects the value of the property, including all land and buildings at the valuation date (referred to as the “Capital Improved Value”).
- Council use the Capital Improved Value (CIV) of a property as the basis for rating. See further information on Rates.
- Per the Valuation of Land Act 1960, the definition of Capital Improved Value is; capital improved value means the sum which land, if it were held for an estate in fee simple unencumbered by any lease, mortgage or other charge, might be expected to realize at the time of valuation if offered for sale on any reasonable terms and conditions which a genuine seller might in ordinary circumstances be expected to require
- Accurate valuations of properties are a critical means of ensuring that property owners pay a fair share of rates.
- The current Rating Valuations reflect the value established on the 1st January 2020 (this date is also known as the valuation date or relevant date).
When is a “Revaluation” undertaken by Council for rating purposes?
- All Victorian Local Governments now undertake general valuations of all property every year. This is otherwise known as a revaluation.
- The current levels of value reflect the 2020 Revaluation.
How long are the valuations effectively used for rating purposes?
The current rating valuations are in place for Council's rating purposes from the 1st July 2020 to the 30th June 2021.
What is a “Supplementary Valuation”?
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 through the Rates Department, which will state the revised valuations and subsequent rate adjustments.
When is a “Supplementary Valuation” effective for rating purposes?
The rating effective date of the valuation is deemed to be after the works have officially completed. Certificates (such as final inspection, occupancy permits or demolition permits) are issued by the relevant building or land surveyors, these are lodged with Council as the authority of the works undertaken.
The information is then referred through Council to the Valuers who will inspect the properties and make change to a valuation where necessary or if required.
Further information may be obtained from Councils Rates Department upon contact.
I've received the “Rates and Valuations Notice” - when are the valuations determined?
The valuations have been determined at the 1st January 2020, otherwise known as the level of value date or relevant date.
Do the “Rating Valuations” represent fair "market value” in the open market today?
The Australia and New Zealand Valuation and Property Standards used by the Australian Property Institute (API), consider the definition of "Market Value" as;
“The estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arms’ length transaction after proper marketing wherein the parties had each acted knowledgably, prudently and without compulsion”
The rating valuations are not reflective of market conditions post 1st January of every year nor do they reflect today's current market conditions.
Due to market movement from the valuation date, market conditions can vastly change. The valuations are established at a set date in time as directed by legislation, so it’s important to be aware that the valuations do not move or roll with the current market conditions today.
It is important to understand that "Statutory Valuations" are not the same as a “Market Valuations” (done at the date of the valuation report or instruction), “Mortgage Valuations” (done for financial loaning and lending purposes) or “Appraisals” (a Real Estate Agents opinion of value, which is not a qualified or certified valuation by analysis).
How are the valuations determined?
All valuations are undertaken on a $/m2 basis, by the Contract Valuer with the analysis of sales (received by Council) and market evidence (external to Council) considered throughout each year leading into a revaluation.
The valuations are based on sales analysis (properties which have sold), market movements and recent sales trends leading to the valuation date. Properties sold, comparable in nature to others for size of land, age, the condition and style of buildings are analysed to assist the Valuer in applying levels of value across categories of property.
It is important to understand Statutory Valuations are not undertaken by application of CPI or percentages across the market. Average property sales statistics or increases, fixed averages or medians are not applied to the valuations.
All statutory valuations are determined in line with legislation including the Valuation of Land Act 1960, Local Government Act 1989 and Valuation Best Practice Specification Guidelines.
What is the importance of the “Rate Notice Issue Date” to me?
As advised on the back of the Rates and Valuations Notice, Ratepayers have a two month period from the notice Issue Date in which to object to the valuation prescribed from the rating authority.
If I want to contend the Rating Valuations, what can I do?
You may believe that the valuation of your property isn’t reflective of the market or value determined at the date of valuation (1st January every even year).
We now have an Online Valuation Enquiry Form for you to complete! The form is designed to obtain as much information relating to you valuation concern and can be submitted as either an enquiry, or where appropriately indicated, as a formal objection against the rating valuations.
You may wish to contact Council and lodge your verbal enquiry by phone via a Customer Services Officer, or sent your letter of formal objection in writing to Council.
Please contact Customer Services – 1300 653 356, or send your valuation letter of enquiry or objection to Councils Property Data Department, PO Box 1000, Mentone VIC 3194.