A valuation is an assessment of the market value of a property at a specific date. All properties in Victoria are valued on a common date of 1 January every year. New or changed properties are also valued as if they existed on 1 January to retain relativity across the municipality.
Determining property values
Property values are calculated by analysing property sales and rental evidence, which is then applied to the data on each particular property. The valuer builds a profile of value levels for each different area and property type by reviewing recent sales. The information is then applied to individual properties, taking into account factors such as land size, age, building size and condition.
Capital Improved Value – what is it?
The Capital Improved Value is the expected sum of money that might be realised if the land and any existing dwelling or improvements were offered for sale at a particular time.
For example, on a rates notice, it may show land value as $250,000 and CIV as $450,000. The CIV includes the land value of $250,000 plus the value of any buildings on the site which in this example is $200,000.
Effective 1 July 2018, as required by legislation, revaluations for every property in every municipality are to be made annually.
Councils do not collect extra revenue as a result of the revaluation process. Valuations are simply used as a tool to assess the rates payable for each individual property.
A general revaluation may result in the rates for some properties going up, while others decrease.
Objecting to a Valuation
The statutory valuation of all property in Victoria is the responsibility of the Valuer-General Victoria and is updated every year as at 1 January. These valuations become effective from 1 July. The valuation is used primarily for calculating municipal rates and state land tax but it can be used by any other rating authority for the purpose of levying a rate or tax.
The Valuer-General Victoria oversees the revaluation process and has a legal obligation to ensure that these valuations are undertaken in accordance with the Valuation of Land Act 1960 and Valuation Best Practice Guidelines. The Valuer-General monitors the progress of all revaluations, provides advice to councils on valuation methodologies and ensures council valuers apply uniform standards across the state.
For more information go to Department of Environment , Land, Water & Planning (DELWP)
Objection and Appeal Process
Objections are lodged with the responsible Council for referral to the valuer. If an objector is dissatisfied with the objection decision, they can apply directly to the Victorian Civil and Administrative Appeals Tribunal (VCAT) to review the matter.
Who can object
If you disagree with the valuation and you are liable for the payment of rates as the owner or occupier, then you may lodge a written objection with the Council.
You must lodge your objection within 2 months from when Council formally notifies you of the new valuation. Most councils issue a combined annual Valuation and Rate Notice so it is important to note your 2 months commence from the issue date of that notice.
How to object
Ask for an objection form by contacting our Revenue Department on 03 5734 6200.
The objection MUST be in writing and:
- contain the required information (as set out in the objection form)
- be mailed to Mitchell Shire Council, 113 High Street, Broadford VIC 3658 or delivered personally to one of our Customer and Library Service Centres
- indicate the value being objected to, either the Site Value, Capital Improved Value and/or Net Annual Value
- detail the grounds on which the objection is made
The Grounds for Objection (Section 17 VLA)
The grounds for objection are:
- the value is too high or too low
- the values or interests held by various persons are not apportioned correctly
- the land in several notices should be combined into one notice
- the land in one notice should be separated into several notices
- the person named on the notice is not liable
- the area, dimensions or description are incorrect
Obtaining property sales information to assist with your objection
Statutory valuations are based on the sale prices and rental returns of similar properties. To successfully argue that a valuation is too high, you will need to demonstrate by sales and rents of comparable properties, that the valuation of your property should be lower.
Property sales information may be purchased from Landata Customer Service by calling 03 8636 2456 or via the LANDATA website. Alternatively you may collect sales information from auction results published in the press or from local real estate agents.
Dealing with the Objection (Section 21 VLA)
When an objection is lodged with Council, it is referred to the valuer for consideration. The valuer must provide a reasonable opportunity for the objector to discuss the matter. Within 4 months of receiving the objection notice, the valuer has the option to:
- disagree with the objection, whereby no adjustment to the valuation is considered justified and a written notice of disallowance is provided to the objector; or
- agree that an adjustment to the valuation is justified and provide a notice recommending an appropriate adjustment to the objector, the Council and the Valuer-General Victoria (VGV).
If the objection is disallowed, the valuer advises the objector and Council directly. The objector is entitled to appeal to VCAT for a review of the decision.
If the objection is allowed, the valuer advises the VGV of the recommendation and the VGV has 2 months after receiving this recommendation to either agree or disagree with the adjustment to the valuation
- if the VGV agrees that the adjustment is justified, a confirmation notice is sent to the objector, Council, and valuer; or
- if the VGV disagrees with the adjustment made a notice of disallowance is sent to all parties
State Land Tax Valuation Objections
Objections to the site value used for land tax purposes can only be lodged with the State Revenue Office after receipt of the land tax assessment.
Objections must be in writing and should be made on the appropriate Land Valuation Objection Forms. These forms are available from the State Revenue Office website or by phoning the SRO on 13 21 61.
The SRO must receive objections to valuations within 2 months of receiving your land tax assessment. It is important to note that taxpayers can only object to the site value shown on their land tax assessments provided they have not already objected to the same site value shown in their rate notices. This means that if a taxpayer has already objected to the site value directly to the Council under a Valuation of Land Act objection, no further objection can be made under the Land Tax Act.
You can discuss valuation objections and valuations generally with our Revenue Department by calling 03 5734 6200.