Local Councils in Victoria raise income from rates to fund services and works within the municipality every year. Manningham, along with the majority of municipalities in Victoria, use the Capital Improved Value (CIV) — the market value of the land and any improvements, as at the valuation date, to determine the share of Council’s annual budget for each of the ratepayers.
Three valuations for each property
Valuers are required to return three valuations for each property, each of which is defined in the Valuation of Land Act:
- The CIV is the total market value of the land plus buildings and other improvements. This is used in Manningham as the base to calculate rates.
- The Site Value is the value of the land only, assuming any improvements had never existed. This is used by the State Revenue Office to calculate Land Tax under the Land Tax Act.
- Net Annual Value is the rental value of the property, excluding outgoings such as building insurance and maintenance costs. It is set at 5% for residential properties, but may be higher for commercial assessments.
If you consider the value disclosed on your Valuation and Rates Notice is not a correct reflection of its market value, as at the date stipulated on the notice (1 January 2019), you may lodge an objection.
An objection must be made within 2 months of the issue date of the Valuation and Rates Notice and it should be lodged on the prescribed form which is available through the Valuer General Victoria website or from Customer Service.
Raising an objection to a valuation is a formal administrative process governed by law and recognised by the Victorian Civil & Administrative Tribunal (VCAT). Before commencing this process, you are encouraged to discuss your valuation concerns with the relevant Valuer appointed by the Valuer-General Victoria.
It is the ratepayers’ obligation to pay the rate instalment by the due date, even if a formal valuation objection has been lodged. Should the current valuation be amended the rate amount will be adjusted and a refund reimbursed accordingly.
The requirements and obligations of all parties are detailed in the Valuation of Land Act 1960 and the Valuation of Land Regulations 2014.