Valuations

Qualified Valuers with tertiary qualifications and practical experience can perform municipal valuations. Valuers operate under the highest standards of professionalism and ethics by declaring impartiality before undertaking valuations.

Each stage of the valuation process is approved and certified by the Valuer - General.

No. Adding together any or all the valuations that appear on your rates notice does not give you the value of the property.

Refer to the section below ‘How are valuations calculated’ which defines each of the individual values that appear on the rates notice.

Three valuations are provided for each assessment within the City of Port Phillip:

1. Site Value (SV) - the market value of the land only
2. Capital Improved Value (CIV) - the total market value of the land, plus buildings and other improvements
3. Net Annual Value (NAV)- Prescribed net annual rent or current value of the property’s net annual rent
   For residential properties, the NAV is set at 5 per cent of CIV and is not a reflection of rental achievable for the property
   For non-residential properties (commercial or industrial), the higher value of either:
   • 5 per cent of CIV
   • the current value of a property's net annual rent. This is, gross annual rental less all outgoings such as land tax, building insurance and maintenance costs and so on (but excluding Council rates).

For all properties, the NAV cannot be less than 5 per cent of the CIV.

Data is compiled on each property over time, through inspection, building and planning permits and other public sources. Property values are determined by analysis of market sales and rental evidence, which is then applied to individual properties by taking their characteristics into account.

The total expenses the Council has estimated to fund operational running costs and complete projects and policies is divided into the total assessed NAV of rateable properties within the municipality to create a 'rate in the dollar'.

The result of this could be that your NAV has decreased but the rate in the dollar has increased by a higher proportion which may result in an overall increase in the rate liability calculated.

Rates are based on the combination of two variables, the rate in the dollar, and the valuation. The rate in the dollar is multiplied by the Net Annual Value to determine your rates.

If the rate in the dollar remained constant, those properties which increased in value above the average increase would pay higher rates. Conversely, those properties which decreased in value would pay lower rates.

If the rate in the dollar increased and all valuations decreased, the rates payable may increase.

If the rate in the dollar increased and all valuations were to be increased by the same percentage, the rates payable will increase.

Market changes that have been observed between the 2020 general valuation and the 2021 general valuation will be reflected in the return of valuation cycle representing a valuation date of 1 January 2021. These valuations will be used in rates assessments for the 2021-22 financial year, and in land tax assessment notices for 2022.

Ratepayers are not able to object to their Rates however they are able to object to their valuations within two months of the date of issue of the rate notice.

Supplementary Valuations may be performed between general valuations if there is a building or planning change to the property. Examples of this include the construction, demolition or extension of a dwelling, or the subdivision of land.

Supplementary Valuations bring the value of the affected property in line with the general valuation of other properties within the municipality. Values are assessed at the same date of the general valuation in use.

The first step is to determine whether the query is relevant to the amount of rates being paid or whether the query or concern is with the actual valuation applied to the property.

If a ratepayer believes that the property would not obtain the valuations prescribed to the property at the relevant date, then council should be contacted via our Online Services,  03 9209 6777 or an objection lodged within two months of the date of issue of the rates notice.

In accordance with the Valuation of Land Act 1960, Ratepayers may formally object to a valuation within two months of the date of issue on the rates notice. Objections can be made in relation to the value of the property or on other grounds specified in the Valuation of Land Act 1960.

Objections can be lodged electronically via the  Valuer-General Victoria Objection Portal.

The 2021 general valuation has a relevant date of 1 January 2021 and is therefore based on market conditions at, and immediately before, that date. If you are still concerned, find out more information about the objection process.

For any general valuation queries, please visit our Online Services or contact ASSIST on 03 9209 6777.

Yes. If you object to a valuation you still must pay rates by the due dates. Failure to do so will result in interest changes.

If, however, it is determined that your property should have been valued for a lesser amount, you will be reimbursed for the relevant amount via a supplementary valuation.

The State Revenue Office uses site value for assessing land tax under the Land Tax Act 2005. The site value of land returned at the 2021 general valuation will be used for land tax in 2022.

There is a right of objection or appeal to the site value arising from its use for land tax through the State Revenue Office. Objections relating to land tax must be made to the State Revenue Office within two months of the date of the land tax notice.

Further information on the use of valuations for land tax can be found at the State Revenue Office website.