The rates cap and your rates

How do valuations affect my rates?

Legislation now requires valuations to be conducted annually by the Valuer-General Victoria as the valuation authority at the statutory date (1 January). The revaluation impacts the rate amount billed to individual ratepayers, as rates are assessed on the value of the property. The redistribution of rates is based on the market movement of property values from 1 January 2019 to 1 January 2020. This varies from property type and location within the municipality.

Valuation services are carried out by independent qualified valuers. Each stage of the valuation process is approved and certified by the Valuer-General Victoria. The general valuation on 1 January 2020 is current for the period 1 July 2020 to 30 June 2021, unless your property is subject to a supplementary valuation. Rates in the City of Port Phillip are based on the Net Annual Value (NAV) of a property. The effect of this differs depending on the type of property:

•  Residential properties (dwellings and units): by law, the NAV must be five per cent of the Capital Improved Value (CIV) of the property - the total market value of the land, plus buildings and other improvements.
• Commercial and industrial properties: the NAV is calculated based on the current value of a property’s net annual rent (that is, gross annual rental less all outgoings such as Land Tax, building insurance and maintenance costs - but excluding Council rates), or five per cent of the CIV - whichever is greater.

For all properties, the market value of the land (Site Value - SV) is also assessed during the valuation process.