How are my rates calculated?
Moreland City Council uses the Capital Improved Value (CIV) as its valuation base to calculate rates.
To work out your rates, we firstly need to add the total value of all properties in Moreland.
We then work out the balance of the total cost to provide all your services. In 2019, the cost is $140,178,950. We divide this cost by the total value of properties, giving us the ‘rate in the dollar’.
This means that for every dollar of value of your property, you pay 0.0024645 cents in rates.
So, if your house has a capital improved value of $580,000, this year you will pay $1,429.42 in rates, excluding additional charges or arrears:
Capital improved value = $580,000 Residential rate in the dollar = 0.00246452 580,000 x 0.00246452 = $1,429.42
How do property valuations affect my rates?
By law, individual property values must be reviewed every year.
In a market where property values have increased, and your property has increased in value a greater percentage than others in the municipality, you pay a larger percentage of the combined general rates total.
In a market where property values have decreased, and your property has decreased in value a lesser percentage than others in the municipality, you pay a larger percentage of the combined general rates total.
Why properties are valued
Council uses the valuation of your property to fairly determine your rates and charges.
Redevelopment, subdivisions and new homes and buildings increase the number of rateable properties in the municipality. With more rateable properties, the costs of services is shared by more properties paying rates however in a growing municipality, more services are also required.
How often are properties valued
State legislation requires all properties within Victoria to be revalued on an annual basis. The Level of Value date for the 2019/20 rating period is 1 January 2019. This means that the valuations on your rate notice are reflective of the market data from around 1 January 2019. This is to ensure consistency across the municipality.
The average decrease in property value across Moreland in 2019 is around 8.5%.
How properties are valued
Qualified valuers analyse all sales that occur between revaluations to determine the new valuations. These are then applied to each individual property in Moreland.
The valuation of a property is based on:
- its location
- site details, such as land classification, zoning and land area
- site influences, such as the shape of the site, topography, nearby uses, encumbrances, easements and multi frontages
- the building, its size, age, condition and style and construction type, and
- the highest and best use of the site.
The Capital Improved Value (CIV) is the land value plus buildings and other improvements such as dwellings, fencing, sheds, pools etc.
The Site Value is the unimproved value of the property ie. Land only. This is used by the State Revenue Office to assess any land tax under the Land Tax Act 2005. For more information regarding land tax please visit State Revenue Office Victoria.
The Net Annual Value is an indication of a property's net annual rent. By law, the Net Annual Value must be at least 5 per cent of the Capital Improved Value.
Each property is allocated an Australian Valuation Property Classification Code (AVPCC). This code is married up with a land use classification which is used for Fire Levy calculation purposes. Properties with multiple uses are allocated the predominant/primary land use.
In certain circumstances, property valuations must be undertaken between general valuations.
These are known as supplementary valuations and are required when properties are
- physically changed, for example, when buildings are altered, erected or demolished
- rezoned, or
- portions are sold off.
Council conducts supplementary valuations every month.
If a supplementary valuation is carried out on your property and the property value changes, you will be issued a letter advising of the amended rates and valuations.
Lodge a supplementary valuation enquiry using our online form.
Objecting to a valuation
You can object to the valuation of a property within 2 months of the date of issue on your rates and valuation notice. This is outlined in the Valuation of Land Act 1960.
When you object, the property valuation is reviewed and a decision made by Valuer-General Victoria appointed Valuers.
Lodging an objection or appeal against a valuation assessment does not prevent rates from being paid. Any instalment that falls due must still be paid by the due date.
Land Tax Objection
Should you receive a Land Tax bill from the State Revenue Office (SRO) and wish to object to the Site Value (SV) please contact SRO directly on 13 21 61 or visit the State Revenue Office website to lodge an online Land Valuation Objection. You have 2 months from the issue date on your SRO notice to object to your Site Value.
Appealing the rates charged
Under the Local Government Act 1989, a ratepayer has the right of appeal to the County Court if they are aggrieved by the rate, only in the following circumstances:
- The land in respect of which the rate was declared was not rateable land
- The rate charge was calculated incorrectly, or
- The person levied with the rate or charge was not liable to be rated.