Property Values and Rates
Understanding your 2018-19 rates
In line with changes to State legislation, for local government rates this year, Greater Dandenong Council has limited the increase in its overall rates to 2.25%.
However, most ratepayers will not see the change in their rates bill equal to this amount due to changes in the value of different properties.
Why value properties?
Council is required by law to now value properties in the City of Greater Dandenong every year. The use of those valuations is part of a long-running system Councils in Victoria use to determine rates.
The City of Greater Dandenong Council uses the Capital Improved Value (CIV valuation base) for the purpose of determining rates. The CIV is the total market value of the land, plus buildings and other improvements.
The CIV is assessed every year, as at 1 January in each year, in accordance with the Valuation of Land Act and under the guidance and audit control of the Valuer-General.
Other government authorities such as South East Water and State Revenue Office may use council valuations for their purposes.
How is the valuation conducted?
Properties are valued by independent valuers and submitted to the Valuer General’s Office for audit and certification. The valuer has thorough knowledge of sales, rentals and statutory considerations which are laid down by valuation legislation.
The valuers undertake an external inspection of the properties and have access to detailed building information. Property values are also determined by an analysis of sales and rental data for each neighbourhood.
Sometimes properties appear to be identical but the rates charged on them are different. This is because rates are calculated on the total value of the land, buildings, swimming pools, garages and any other improvements.
If changes to a property occur that could alter its value, a supplementary valuation is conducted during the year to update property records.
These changes can include:
- changes in the use of a property
- zoning amendments
The supplementary valuation takes effect as soon as the valuation is approved by Council. In some cases, supplementary valuations may be back dated to correct anomalies. Rates are then adjusted pro rata for the year, based upon the effective date of the supplementary valuation.
A formal objection to a valuation can be made, upon the grounds set out in the Valuation of Land Act.
An objection to a valuation does not remove the need to pay the rates that have been levied. Failure to pay rates on time may result in interest being charged.
Please keep in mind that the the existing valuation reflects the market price at the date of valuation. It does not always reflect today's values and the property market may have increased or decreased since the market level date of the valuation.
Before obtaining an objection form, we encourage you to contact us to understand the process in which the valuation was made.