Understanding Your Victorian Council Valuation and Why It Matters

If you own property in Victoria, whether it’s your principal place of residence or an investment, there’s an important document that often gets overlooked each year: your council rates notice.

Every Victorian council undertakes a property valuation annually, based on property values as at 31 December of the previous year. These updated valuations are then reflected in the September council rates notice, and they play a much bigger role than many property owners realise.

The three key values to check

When your rates notice arrives, there are three figures you should always review carefully:

• Capital Improved Value (CIV)
  This represents the value of the land plus any improvements, such as buildings.
  
• Site Value (SV)
  This reflects the value of the land alone, as if it were vacant.
  
• Net Annual Value (NAV)
  This is generally based on the estimated rental value of the property.

These values are used to calculate your statutory charges for the year ahead, including:

• Council rates
• The Emergency Services and Volunteers Fund
• State land tax obligations

Why getting these values right is important

The site value is particularly significant. If the land value has been assessed too high, you may end up paying more than necessary, not only in council rates, but also in land tax.

Importantly, council valuations do not always align with current market conditions. In some cases, they can be materially higher than what the property would realistically sell for, especially when market conditions have softened or where comparable sales do not support the valuation.

You have the right to object

If you believe your property has been overvalued, you are entitled to lodge an objection. There is a specific timeframe to do this after receiving your rates notice, so it’s important not to put it aside without review.

Even if you miss the initial objection window, you may still have the opportunity to challenge the valuation used for land tax purposes separately.

A simple annual habit for property owners

Rather than treating your rates notice as a formality, it’s worth making a habit of reviewing these valuations each year. A small adjustment to the assessed values can make a meaningful difference to your ongoing holding costs over time.

Next steps

If you’re unsure how to interpret your council rates notice, or whether your property valuation looks reasonable, book a time with Antoinette Sagaria.

Antoinette Sagaria from Entourage – Buyer and Vendor Advocate