Property valuations explained

A property valuation is an assessment of a property's value at a specific point in time.

In Victoria, property valuations used for council rates and land tax purposes are undertaken annually under the authority of the Valuer-General Victoria (VGV).

Valuations are determined as at 1 January each year and reflect the property's value on that date, not its value when you receive your rates notice.

Property valuations are used for a range of purposes, including:

• Calculating council rates
• Determining land tax assessments
• Other statutory and government purposes

Council does not determine the value of individual properties. All valuations are conducted independently under the authority of the Valuer-General Victoria (VGV) in accordance with Victorian legislation.

Note: A property's market value may change over time. Annual valuations ensure property values used for rating and taxation purposes reflect current market conditions as at the valuation date.

Property valuations are undertaken by qualified valuers appointed to carry out valuations on behalf of the Valuer-General Victoria (VGV).

When determining a property's value, valuers consider a range of factors, including:

• Recent sales of comparable properties
• The property's location
• Land size and characteristics
• Buildings and other improvements on the land
• Planning controls and zoning
• The current and potential use of the property
• Market conditions at the valuation date

The valuation reflects the estimated market value of the property as at 1 January of the relevant valuation year.

Property markets can change over time. As a result, your property's valuation may increase, decrease, or remain unchanged from one year to the next, depending on market movements and the characteristics of the property.

Important: Valuations are based on market evidence available at the valuation date and are assessed independently under the authority of the Valuer-General Victoria.

Your rates notice outlines three valuation figures. Each valuation serves a different purpose and is used in different ways under Victorian legislation.

Capital Improved Value (CIV)

The Capital Improved Value is the estimated market value of your property, including both the land and any improvements such as buildings, landscaping and other developments.

Council uses the CIV to calculate your general rates.

Site Value (SV)

The Site Value is the value of the land only, assuming it is vacant and available for its highest and best use, subject to any relevant planning, zoning and legal restrictions.

The SV is primarily used for land tax and other statutory purposes.

Net Annual Value (NAV)

The Net Annual Value  is a statutory valuation used for rating and taxation purposes.

For most residential properties, the NAV is calculated as 5% of the Capital Improved Value (CIV).

Your property's valuation is one of the factors used to calculate your council rates.

It is important to understand that a change in your property's valuation does not mean your rates will change by the same percentage.

Council's total general rate revenue is limited by the Victorian Government's annual rate cap. The amount of rates you pay is influenced by:

• The total rate revenue Council is permitted to collect
• Changes in property valuations across the municipality
• Your property's valuation relative to other properties
• Any rating categories, charges and levies that apply to your property

For example, if your property's valuation increases by 10%, this does not necessarily mean your rates will increase by 10%.

Your rates are determined in the context of the valuations of all rateable properties across the municipality. If your property's valuation changes at a different rate to the average change across the municipality, the proportion of rates you pay may increase or decrease accordingly.

Important: Rates are based on your share of the total value of rateable properties within the municipality, not solely on the change in your property's valuation.

Property values can change from year to year as market conditions change.

A change in your property's valuation may reflect:

• Changes in local property prices
• Recent sales of comparable properties
• Changes to your property or improvements made to it
• Changes in land use, planning controls or zoning
• Broader economic and market conditions

A valuation increase does not necessarily mean the physical characteristics of your property have changed. In many cases, it reflects changes in the market value of similar properties in the area.

Similarly, a decrease in valuation does not necessarily indicate a problem with your property. It may simply reflect changes in local market conditions since the previous valuation.

Important: Annual valuations are based on the property's value as at 1 January of the relevant valuation year and are assessed using market evidence available at that date.

Different government authorities are responsible for property valuations, council rates and land tax in Victoria.

Valuer-General Victoria

Valuer-General Victoria (VGV) is responsible for property valuations in Victoria.

Property valuations are undertaken by qualified valuers under the authority of the VGV and in accordance with Victorian legislation and valuation standards.

Moorabool Shire Council

Moorabool Shire Council uses the property valuations provided by Valuer-General Victoria to calculate council rates and charges.

Rates and charges are calculated in accordance with relevant legislation, Council's adopted Budget and its Revenue and Rating Plan.

Council does not determine the value of individual properties.

State Revenue Office Victoria

State Revenue Office Victoria (SRO) uses property valuations to assess land tax and administer other state taxation obligations.

Important: Moorabool Shire Council uses property valuations to calculate rates, but Council is not responsible for determining the value of individual properties. Property valuations are independently determined under the authority of Valuer-General Victoria.

If you disagree with your property valuation, you may have the right to lodge an objection within the applicable objection period.

You can lodge your valuation objection in one of the following ways:

• Online: Submit your objection through the Valuation Objections Portal
• In person or by email: Complete your relevant objection form (please find below) and lodge it directly with Moorabool Shire Council by:
  • visiting a Council customer service centre, or
  • emailing the completed form to info@moorabool.vic.gov.au.