Rates valuations explained
Rate calculations are complex, learn here how Council calculates your rates.
Property valuations
Council rates are a contribution each ratepayer makes towards the cost of running Council and the community services it provides. How much you pay depends on the value of your property.
A revaluation of all properties within the City was undertaken during 2009-2010. The revaluation date was 1 January 2010 and the value assessed will be applied to all rateable properties for the financial years 2010-2011 and 2011-2012.
A revaluation in itself does not increase or decrease revenue for the Council, but is used to ensure the distribution of the rate burden remains fair and equitable over time. The Victorian government has legislated that a general revaluation is to occur every two years, their rationale being to ensure equity and transparency and, where possible, to reduce significant movements between valuations.
The City of Boroondara elected to adopt the Capital Improved Value (CIV) method of valuation in 1997-1998, as this is considered to be the most equitable way to distribute the rate burden among the community.
A valuation is an assessment of the market value of a property, at a specific date and in accordance with relevant legislation and legal precedent.
Property valuations definitions
Capital Improved Value - CIV refers to the total market value of the land plus the improved value of the property including the house, other buildings and landscaping.
Site Value - SV refers to the unimproved market value of the land.
Net Annual Value - NAV is the annual rental a property would render, less the landlord's outgoings (such as insurance, land tax and maintenance costs) or 5% of the CIV for residential properties and farms. The value is higher for commercial/industrial and investment properties.
Further information
Visit these links to the Local Government Victoria website for more detailed information about property rates and local government:
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