Property valuation and your rates
Property valuations
Each year your property is valued by the Valuer-General Victoria. This $ value is used to work out your rates and land tax.
Property values are worked out by analysing property sales and rents, and looking at the features of a property. Data about a property is collected from inspections, building and planning permits and other public sources.
We use the valuation done in January 2022 to work out your rates for the year 1 July 2022 to 30 June 2023.
If your property has changed, an extra or supplementary valuation may be done. Examples of this include the construction, demolition or extension of a dwelling, or the subdivision of land.
Valuation amounts for your property
You will see 3 valuations on your rates and valuation notice:
- Capital Improved Value (CIV) – the market value of the land, plus buildings and other improvements. The CIV is the approximate amount you could expect to sell your property for on the open market. We use this value to calculate your rates.
- Site Value (SV) – the market value of the land (only). This is used by the State Revenue Office to calculate land tax.
- Net Annual Value (NAV) – prescribed or current value of the property’s net annual rent. We previously used NAV to calculate rates.
How we calculate rates
Step 1: We work out how much money we need to raise from rates to pay for the services we will deliver.
Step 2: We add up all the valuations of every residential, commercial and industrial property in Port Phillip.
Step 3: We calculate the rate in the dollar for each type of property. Revenue ÷ value of properties = rate in the dollar
We've calculated we need to raise $125 million in rates income from properties with a value of $74.7 billion. In the 2022/23 budget, the differential rates for each property type have been set:
Resident rate payers will pay $0.001615 x Capital Improved Value in general rates.
Commercial rate payers will pay $0.002062 x Capital Improved Value in general rates.
Industrial rate payers will pay $0.002073 x Capital Improved Value in general rates.
Separate waste charges and new services
We've introduced a separate waste charge so we can manage the costs of delivering essential and highly valued waste services. Many of our neighbouring councils have a separate waste charge. This year we're also rolling out a new service for Food and Garden Organic Waste (FOGO).
All rateable properties will have the waste charge of $176.20. Properties which also have a kerbside FOGO collection will also pay $88.10 for this service. Use the FOGO look up service to find out if your house or townhouse will be getting one of these bins.
Some properties are eligible for a rebate on the waste charge. Types of properties to get a rebate are:
- residential and commercial car park spaces
- residential storage areas
- properties with private waste collection services.
We still offer a rebate of $70 for properties that switch to an 80 litre waste bin. There is also a surcharge of $221 if you require the large 240 litre waste bin.
Differential ratings for different property types, the change to CIV and the separate waste charge are the most fair and equitable way to manage the rates burden and the rising cost of waste management.
How do rates compare in 2022/23
The rates cap this year has been set by the Victorian Government at 1.75%. In a normal year, using NAV to calculate rates, if your property increased in value by:
- more than 7.3% your rates would have increased by more than 1.75%
- less than 7.3% growth would have seen a rate increase lower than 1.75%
Due to our introduction of a separate waste charge, changing from NAV to CIV and differential rating, comparing last year to this year needs a different approach.
Rate changes by neighbourhood
This table has data for the median property for our nine neighbourhoods. It shows how the value of the median property and its rates and charges have changed over the last 2 years.
| Neighbourhood | 2021/22 Valuation | Rates and charges | 2022/23 valuation | Rates and charges | Change |
|---|---|---|---|---|---|
| Albert Park | $1.65m | $3,150 | $1.8m (9% increase) | $3,171 | Increase of $21 or 0.7% |
| Balaclava | $0.6m | $1,145 | $0.63m (5% increase) | $1,194 | Increase of $49 or 4% |
| Elwood | $0.66m | $1,260 | $0.69m (5% increase) | $1,291 | Increase of $31 or 2.4% |
| Melbourne | $0.47m | $897 | $0.48m (2% increase) | $951 | Increase of $54 or 6% |
| Middle Park | $1.7m | $3,245 | $2.0m (18% increase) | $3,494 | Increase of $249 or 8% |
| Port Melbourne | $0.92m | $1,756 | $0.98m (7% increase) | $1,759 | Increase of $3 or 0.2% |
| Ripponlea | $0.58m | $1,105 | $0.61m (5% increase) | $1,161 | Increase of $56 or 4.9% |
| South Melbourne | $0.64m | $1,222 | $0.64m (no change) | $1,210 | Decrease of $12 or 1% |
| St Kilda | $0.48m | $916 | $0.50m (7.4% increase) | $984 | Increase of $68 or 7.4% |
| St Kilda East | $0.55m | $1,050 | $0.56m (2.9% increase) | $1,081 | Increase of $31 or 2.9% |
Port Melbourne and Middle Park are the only neighbourhoods where the median property has higher rates in 2022/23 compared with 2 years ago in 2020/21.
Objecting to a valuation
If you disagree with the value of your property, you may object within 2 months of the date of issue of the rates notice. Remember, your 2022/23 general rates are based on the value of your property on 1 January 2022.
You can lodge your objections on the Valuer-General Victoria Objection Portal.
For any general valuation queries, please contact us online or phone ASSIST on 03 9209 6777.
Municipal valuations are governed by the Valuation of Land Act 1960.
Contact the rates team
To talk to us about your rates send a direct message, or phone us on 03 9209 6777 during business hours Monday to Friday.