How your rates are calculated
We begin by valuing your property
The value of your property will change over time, taking into account land value and any improvements you’ve made to the property.
Then calculating the Net Annual Value (NAV)
For residential properties, the NAV is five per cent of the valuation as set by legislation, and can be higher for commercial and industrial properties.
And multiplying by the set rate
Your rates amount is then worked out by using the formula: NAV x rate in the dollar = $ amount of rates.
For 2018/19, this has been set at 5.611608 cents for every property.
For example
- Your residential property is valued at $700,000.
- At 5 per cent of the value, the NAV is $35,000.
- Charged at 0.05611608, your annual rates are $1,964.06
Please note that your property will also be charged Fire Service Property Levies. More details are available on State Government Fire Service Property Levy Website
We do not apply extra charges
Some councils will include an additional municipal charge on each property or service-specific charges (for services like bin collection). We do not charge you for these as part of our rates. However, we may charge interest on late payments.
Pay your rates installment now
Your questions
Why do we calculate rates in this way?
In 2004, we asked an independent group of residents to review different rates systems and decide which one was fairest. The group chose the Net Annual Value system. The other two options are:
- Site Value (SV) – the market value of the land only
- Capital Improved Value (CIV) – the total market value of the land plus buildings and other improvements.
More detail is available in the Valuation of Land Act 1960.
How is your property valued?
Council has access to multiple sources of information that help determine the value of your property. For instance, our valuers analyse:
- recent property sales
- the local rental market
- building and planning permits
- other public sources
Valuations also take into account the different characteristics of each property and area, and may even request to enter your property to help make a true and correct valuation. The inspection is arranged in advance with the owner/occupier of the property.
When is your property valued?
Up until now and including the 2018 revaluation, property valuations occurred every two years and were carried out by a valuation authority (a municipal council or the Valuer-General). From 2019, valuations will be conducted annually and the Valuer-General will be the sole valuation authority. The Valuer-General will also provide valuations to councils and the State Revenue Office. Your current Valuation took place on the 1 January 2018
Supplementary valuations
In certain circumstances, supplementary valuations may be performed between general valuations. They are required when properties are:
- physically changed (eg altered, erected or demolished)
- amalgamated, subdivided, portions sold off, rezoned or are affected by road construction.
Who does the valuations?
Only qualified valuers – professionals holding recognised tertiary qualifications and with the required practical experience – perform municipal valuations. Our valuers are employed by Council on a contract basis.
Our valuers operate under the highest standards of professionalism and ethics. All valuers must declare their impartiality before undertaking valuations. They also undertake to perform all valuations to the best of their ability and judgement.
Can you object to my property’s valuation?
If you are unhappy with how your property has been valued, you have two months from when you receive your first rates notice to object to your property valuation. You can also object to the rates amount on your notice if you think it is incorrect.
Please contact us to talk through your rates notices first. If you are still unhappy, you can request the required form. Our valuer will then contact you to discuss the matter with the objector.
If you are not satisfied with the decision, you may appeal to the Victorian Civil and Administrative Tribunal or to the Supreme Court.
If you object to a valuation you still must pay your rates by the due date, otherwise you will incur further charges.
What else are valuations used for?
Your property valuations are also used by:
- water authorities (such as City West Water) as a basis for charging councils for fire services.
What is an Australian Valuation Property Classification Code (AVPCC)
The Australian Valuation Property Clarification Code (AVPCC) is assigned to your property by our contract valuers as per the Fire Service Property Levy Act 2012 showing your land use classification and is now indicated on your rate notice.