Council Property Valuations used for Council Rates and Land Tax purposes in Victoria are based on valuations returned annually as at 1 January every year. The valuations are used for Council purposes from 1 July each year for the financial rating year and issued for land tax purposes from 6-9 months after the valuation date. Land tax relates to the land held as at 31 December each year. We have 35 years experience in Council valuations and land tax valuation objections – Melbourne and Mornington Peninsula. Let our experience benefit you.
Valuations for most residential and commercial properties are completed using computer assisted mass appraisal software (CAMA is a term used to describe a software package used by local council and state government revenue offices to help establish real estate valuations for property tax calculations).
In Victoria the valuations are completed in accordance with the Valuation of Land Act 1960. The valuations are completed in a short timeframe to comply with annual return requirements using a dataset of all the key property variables including land, buildings, zoning, and permit details
Given the move to annual valuations, valuers are only required to inspect on a small proportion of properties annually in each municipality. The completion of most properties using this approach generally leads to an acceptable valuation outcome, however anomalies can arise around shape, zoning, easement, restrictive covenants, land and building size discrepancies, site contamination and heritage considerations.
Land tax rates have had minor adjustments in recent years, but the rates increase rapidly for sites or combined site values in excess of $1,000,000 dollars, which certainly applies to a substantial number of freehold properties in the inner and middle suburbs of Melbourne and the coastal areas on the Mornington Peninsula.
Land Tax Valuations are applied against a threshold schedule which has had minor changes in recent years including lowering the base rate from which land tax applies. Current Victorian Land Tax Scales
You have 60 days from the issue of a Council Rates and Valuation Notice or a Land Tax assessment to lodge a notice of objection, so review your situation and contact us to arrange our review of residential, commercial and industrial properties.
What is land tax?
As defined by the State Revenue Office – Land tax is an annual tax based on the total taxable value of all the land holdings you own in Victoria, excluding exempt land such as your home (principal place of residence). This includes land owned individually or jointly with others.
Land tax is calculated using the site values (determined annually by the Valuer-General Victoria) of all taxable land you owned as at midnight on 31 December of the year preceding the year of assessment.
You may have to pay land tax if you own, either individually or jointly with others:
- investment properties, including residential rental properties
- commercial properties such as retail shops, office premises and industrial properties
- holiday homes
- vacant land.
Land tax assessments are generally issued between January and June each year.
Land tax exemptions
Land tax does not apply to exempt land such as:
- your home, known as your principal place of residence (PPR)
- your farm, known as primary production land (PPL)
- rooming houses and charitable institutions.
Site and capital improved valuations are determined by contractors appointed by the Valuer-General Victoria. Neither the State Revenue Office or Municipal Councils are involved in determining these valuations. The valuations are determined independently by contracted valuers.
These valuations are utilised by the State Revenue Office to calculate:
- land tax
- vacant residential land tax
- windfall gains tax
While the municipal councils use the Capital Improved Value to calculate your Municipal rates and charges, with the associated fire services levy charges collected on behalf of the Victorian Government at the rates declared by the government.
If you disagree with the valuation of your property for land tax, you can via this link lodge an objection online within 2 calendar months of receiving your assessment. You have the ability to lodge an objection when the Council issues its annual rates and valuation notice or when you receive you land tax assessment notice.
An objection is a formal avenue of dispute resolution requiring you to explain the grounds of your objection and describe clearly the reasons why you disagree with your assessment. An objection is generally not valid if the grounds stated are vague, claim that the tax payable is too high or you state that an assessment should not be issued on compassionate grounds. Even if you have lodged an objection, you must still pay your land tax in full by the due date or you may be charged interest. If your objection is successful, any amount overpaid will be refunded with interest.
Objecting to your Council rates and valuation notice
Your objection will be assessed by the relevant valuation authority (Valuer General Victoria appointed valuation contractor). If you are objecting to valuations on your council rate notice, you need to object directly to the following link rating valuation Victoria objection portal.
In accordance with Division 3 – Section 17 of The Valuation of Land Act 1960, – the grounds for objection are as follows:
- (a) that the value assigned is too high or too low;
- (b) that the interests held by various persons in the land have not been correctly apportioned;
- (c) that the apportionment of the valuation is not correct;
- (d) that lands that should have been included in one valuation have been valued separately;
- (e) that lands that should have been valued separately have been included in one valuation;
- (f) that the person named in the notice of valuation, assessment notice or other document is not liable to be so named;
- (g) that the area, dimensions or description of the land including the AVPCC allocated to the land are not correctly stated in the notice of valuation, assessment notice or other document.
The appointed valuer has to respond with prescribed periods and the ratepayer objector has the right to ultimately appeal the outcome of an objection should they be dissatisfied with the outcome of that objection.
To be successful in you valuation objection that either your site or capital improved valuations are too high, you you need to present a case supported by comparable sales evidence around the relevant valuation date being 1 January in the applicable valuation year. That’s when you need to get an expert property valuer involved who is a specialist in the rating and taxation field. When there are substantial taxes involved particularly with regard to high value residential and commercial properties, most ratepayers don’t have the expertise or market knowledge to outline a professional case for a reduction of value. We have the expertise and experience in rating valuations, objection and appeal processes to firstly ascertain whether their are valid valuation grounds based on market sales evidence to lodge an objection which should be successful, and should that objection be disallowed, we have the experience to handle a valuation appeal should that be appropriate.
How can we help?
- If you have concerns with your Council property valuations which area also used for Land Tax purposes we can assist with an individual site specific review of the valuation and the provision of independent property advice about the appropriate market valuation at the relevant valuation date;
- Checking that the valuations are fair and reasonable at the date of valuation is a prudent check to ensure you are not paying more Council rates or Land Tax than you should based on the assessed market value;
- Kelly and Fitzgibbon can manage the objection lodgement process and attendance at VCAT on appeal as required;
- Our reviews of Council and Land Tax Valuations have saved client many tens of thousands of dollars for higher valued properties.
- We can suggest a number of strategies which can assist in reducing your land tax depending on the configuration of your property holdings.
Call us today Tel: 03 9596 0000 – Melbourne | Tel: 03 5977 1056 – Mornington or complete the contact form setting out your requirements and we will assist you with your property valuation and advice requirements.
