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Understanding your rates notice

What do the three valuations on the rate notice mean?

The State Government requires all Councils to revalue properties at least every two years (biennial). Properties in the Melbourne metropolitan area (and across Victoria) are now valued at a common date.

In accordance with State Government requirements, your property has been re-valued as a result of a General Revaluation at the market level of value that existed at 1 January 2016.

The three (3) valuations shown on your rate notice are Site Value (SV), Capital Improved Value (CIV), and the Net Annual Value (NAV).

  • SV: Site Value is the market value of the land only.
  • CIV: Capital Improved Value is the total market value of the land plus buildings and other improvements.
  • NAV: Net Annual Value is either 5% of the CIV or the current value of a property's net annual rental (gross annual rental less specified outgoings such as insurances, land tax and maintenance costs, but excluding Council rates). Residential dwellings and own your own flats by law must have an NAV which is 5 percent of the CIV.
As the majority of properties are sold as improved properties, it is generally easier to compare sales of similar improved properties in the market place with the Capital Improved Value (CIV) of a property. It is important to note, that when considering market sales evidence, that sales must be as close as possible to the market value date and not at the time the rates notice is issued, as the property market changes over time subject to market forces (upward and downward).


Calculating Rates

Rates are calculated by multiplying the Capital Improved Value (CIV) of the property by the rate. The rate that applies in 2016/2017 is 0.0021130 for each dollar of CIV. Municipal and Waste Management charges are also added to give a final figure.

What's the Municipal Charge?

This charge is applied to each rateable property to allow recovery of part of the administrative costs of operating the Council. Legislation requires this amount cannot exceed 20% of the rate revenue (including general rates and municipal charges). This has been set at $100 per annum. Administrative programs such as finance, asset management, information systems, corporate records, human re sources and governance will be supported by this revenue.

Supplementary Valuations

All properties within the Municipality are revalued every two years, in line with State Government requirements and in accordance with the Valuer General's “Best Practice” guidelines. Council rates are determined by applying the Council “Rate in the $” to the Capital Improved Value of the property.

In certain circumstances, valuations must be determined between general revaluations. These are known as supplementary valuations and are required when the circumstances of a property changes which affects the property’s value. Section 13DF of the Valuation of Land Act 1960 relates to supplementary valuations.

Some circumstances that may trigger a supplementary valuation are as follows:

  • Demolition of a building(s) on the land
  • Construction of a new building(s) on the land
  • Extension to or renovation of existing building(s)
  • Subdivision or consolidation of the land
  • Correction of Arithmetical errors when the valuation was initially calculated
  • Other improvements to the land such as out buildings, swimming pools etc
  • Alterations to the Zoning of the land
  • Change in the land’s usage or occupancy
  • Realignment of the properties boundary
  • Property becomes rateable

When any of the above situations arise, a supplementary valuation will be undertaken for the property to bring the valuation of the property in line with the general valuation of other properties in the Municipality. Values are assessed at the same date of the general valuation currently in use.

Where a property has undergone a supplementary valuation, the owner/ratepayer will be issued with a Supplementary Rate and Valuation notice, this notice shows the new/adjusted valuations for the property.

The Supplementary Rate and Valuation notice will also include any adjustments to the rates and charges affected by the supplementary valuation.

How to enquire or object to your valuation

How to query your valuation

The values described elsewhere in this notice were assessed as at 1 January 2016. The next valuation date is 1 January 2018.
The Valuation may be used for the purposes of a rate or tax levied by another authority. The State Revenue Office uses the site value in assessing land tax. Further information on the use of valuations for land tax can be found on the State Revenue Office website sro.vic.gov.au

To query your valuation go to kingston.vic.gov.au/valuationenquiry  or call 1300 653 356 or write to Council’s Property Data Department, PO Box 1000, Mentone 3194.

How to object your valuation

A person who is aggrieved by a valuation has an opportunity to formally object to valuation within two months from the date of issue of the notice. The grounds of objection are limited and are described in Section 17 of the Valuation of Land Act 1960. Valuation objections are processed in accordance with Part III of Valuation of Land Act 1960 (amended). You will have the opportunity to discuss your objection with the Valuer and you will be required to provide sales or market evidence to support your opinion of value for the valuations assessed at 1 January 2016.

If an objector is not satisfied with the outcome or has not heard from the Valuer after 4 months receiving the objection, they may apply to the Victorian Civil Administration Tribunal (VCAT) for review of the decision.

Certain circumstances may warrant an application to the Victorian Supreme Court. Any person proposing to pursue this course should consult the Valuation of Land Act 1960 (as amended). If you wish to formally object to a valuation please see kingston.vic.gov.au/valuationobjection or call Council’s Property Data Department on 9581 4396.