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 — to determine the share of Council’s total rate revenue applicable to that property.
For the 2018/2019 Rates Notice, the rates are calculated using a property value (CIV) as at 1 January 2018.
The valuations are assessed in accordance with the Valuation of Land Act 1960 and the valuation process is under the guidance and audit control of the Valuer-General Victoria. The valuations are carried out by qualified Valuers, who hold recognised tertiary qualifications and have the required practical experience.
Subsequent to the recent introduction of the State Taxation Acts Further Amendment Act 2017 and the amendments to the Valuation of Land Act 1960, from 1 July 2018, the State Government will centralise the statutory valuation process and introduce annualised valuations commencing in 2019. This means that for each year going forward an annual valuation will be determined under the authority of the Valuer-General Victoria, and such annual valuation will be reflected in all Rate Notices. It is important to note that the recent changes to the legislations do not change any underlying valuation principles or methodologies.
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 2018), you may lodge an objection.
An objection must be made within two months of the issue date of the Valuation and Rates Notice and it should be lodged on the prescribed form which is available from Council’s Property Services office.
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 a Valuer by contacting Property Services Unit on 9840 9333 who will direct your enquiries to the relevant Valuers appointed by the Valuer General Victoria.
The requirements and obligations of all parties are detailed in the Valuation of Land Act 1960 and the Valuation of Land Regulations 2014.
Valuer to provide information
The actions required to be taken by the Valuer are governed by the level of valuation being objected to. Where the valuation is not less than the prescribed amount, the Valuer must, within one month of receipt of the objection, provide the objector with details of the valuation. The prescribed amounts are currently:
- Site Value (SV) $1,500,000
- Capital Improved Value (CIV) $2,000,000
- Net Annual Value (NAV) $120,000
The objector must then, within one month, provide details in support of the contended valuation.
In all other cases, the Valuer must determine the objection within four months after receiving the notice of objection.
How is the valuation objection determined?
After receiving the Objection Notice and/or the objector’s detailed submission, the Valuer will review the valuation and contact the objector to arrange a suitable time to inspect the property and discuss the objection. The Valuer will then consider the objection and gathered information and determine an outcome.
When must this determination be finalised?
An objection must be determined within four months after receiving the objection.
If the Valuer considers an adjustment is appropriate, this must be recommended to the Valuer-General Victoria (VGV). The VGV then has two months to consider this recommendation and advise all parties of the conclusion.
What if I am still unhappy with this result?
An objector dissatisfied with the decision of a Valuer or VGV, may apply to the Victorian Civil and Administrative Tribunal (VCAT) for review of the decision. This appeal must be lodged directly with VCAT within thirty days of the issue of the final determination of the objection. The objector must serve a copy of this notice of appeal on Council.
The two sides to the objection formally present their cases to the Tribunal for an independent decision. These presentations will include details of the property, relevant property sales information, valuation rationales and concluded valuations. Each party will have the opportunity to question the other in the formal environment of the Tribunal.
If you object to a valuation, you must still pay rates by the due date.
Land Tax Objections
A taxpayer may object to the Site Value following the issue of an assessment notice. This must be on the Valuation Objection Form available from the State Revenue Office. Objections must be lodged with the SRO within 60 days from the date of the assessment notice.