About property valuations
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.
Since 1 July 2018, the Valuer-General Victoria has been responsible for providing updated valuations for every property, in every municipality, every year.
The valuation of your property is used to determine how much of the total rates Council is collecting each year that you pay. As the valuation of your property changes you may see an increase, decrease or no change in the rates that you pay.
Council receives no extra revenue from property valuation changes.
The State Government’s appointed Valuer-General Victoria oversees the revaluation process every year and has a legal obligation to carry out this process in line with the Valuation of Land Act and Valuation Best Practices Guidelines. The Valuer-General also ensures all revaluations are up to date, provides advice to councils and ensures uniform standards for everybody.
Property value is calculated by taking into account both sales and rental history in the area which is then applied to each property. A profile of value levels is created to take into account the recent sales of the area and this information is applied to individual properties with factors such as land size, age, building size and condition taken into account.
The valuations for all properties will be updated each year on 1 January. The valuations will then become effective from 1 July of that year.
The valuation created will then be used to calculate your rates and state land tax. All rating authorities can use this information for the purpose of levying a rate or tax.
For more information go to Department of Environment , Land, Water & Planning (DELWP)
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.
From time to time, Council may request the Valuer-General Victoria to update the valuation of your property. This can be requested for a number of reasons.
It may be for things like:
- buildings being constructed or demolished
- change in occupancy or usage affecting the valuation
- newly developed land being valued for the first time
- consolidation of rates assessments
- changes to land area
- corrections to property data that affect the valuation
Any change must be submitted to and accepted by the Valuer-General Victoria.
Once completed, a supplementary valuation notice is issued to the property owner.
Where a supplementary valuation notice has been issued due to a subdivision or consolidation of land, an adjustment may be added to your property based on the final balance of rates and charges due on the original property. This happens automatically.
Objecting to a valuation - 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.
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.
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 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
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.
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
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.
Property valuation fact sheet
The Victorian Government has produced a fact sheet explaining the property valuation process.
You can discuss valuation objections and valuations generally with our Revenue Department by calling 03 5734 6200.
This page was last updated on 20 August 2021.