Property valuations are used to calculate how much you pay in rates. Government legislation requires the Council to assess the value of all properties every year. These values are then used in the striking of rates to fairly distribute rates and charges. The valuations shown on your rate notice have been reviewed and are based on the value of your property as at 1st January 2016.
Council uses the Capital Improved Value method to determine your rates. Capital Improved Value (CIV) is basically the market value of the land and improvements, ignoring the added value of chattels, fixtures and fittings. Property values are determined by analysis of market sales and rental evidence. The valuer builds a profile of value levels for each different area/property type by analysis of recent sales and leasings. This information is then applied to individual properties, taking into account the different characteristics of each property.
Date of valuation
All properties were revalued for use by Council in the 2016 - 2017 rating year. These values remain in force until 30th June 2018. When something has changed the value of the property, valuations must be performed between general valuations. These are known as supplementary valuations and may be performed at any time of the year.
If you feel that your property is incorrectly valued contact the Council’s Valuers to discuss the matter. If their response does not completely satisfy you, they will provide you with the information on how to formally object against the valuation. Any formal objections must be lodged within two months of the date of issue of the rate notice. Late objections will not be accepted. For Valuation Objections, please contact us on: 5950 1090.
If you object to a valuation you still must pay the rates by the due date. Failure to pay rates will incur interest. The State Revenue Office also uses Council’s Site Valuation indicated on your Rate & Valuation Notice for the purpose of assessing land tax. The current site value of your property will be used for Land Tax in 2017 and 2018.
Valuation changes to local government
Mornington Peninsula Shire is required to move from biennial to annual valuations in line with the state government changes being introduced from 1 July 2018.
Why is the State Government introducing these changes?
While this is a question for the state government to respond to, we understand the motivations to be:
- All properties subject to land tax, which is collected by State Revenue Office, will be impacted as land values will be reviewed annually. To date the land tax threshold and fee schedule remains unchanged – an increase in site value will result in additional revenue for the state from this source. Please note the changes in the legislation will not increase the revenue collected from council rates.
- Valuation ‘asset’ – the centralisation of the function will create an asset that the State Government may choose to sell to a third party
What does it mean for residents?
- Although Council rates revenue will not increase as a result of the change, valuations will now be conducted every year rather than every two years (and rates adjusted accordingly) which may lead to greater volatility in rates for residents
- Properties subject to Land Tax will potentially have a larger Land Tax Bill if the value of the property increases
- The Fire Service Levy will also vary in line with the changes in the value of the property annually
Will Rates rise?
- Total rates revenue collected by the council will not increase as a result of the changes
- However rates are based on the value of the property which will now be valued each year rather than every two years – this may lead to greater volatility in rates for residents
What rating year will the new process affect?
- The new regime will commence on 1 July 2018
Why was the community not consulted about the change?
- This is a question for the State Government to respond to – Local Government was given very little time to respond to the proposed changes
Will our rates now change more year to year?
- It is likely there will be greater volatility in rates, however rate payers will pay the same amount over each two year period as they would have paid under the previous regime. The total rates income generated for all rate payers across the Shire will not change.
Will Council make more money in rate revenue from this new process?
- No, the Shires rates income will not change.