The Victorian Valuer-General announced today that he has certified the Victorian biennial 2012 cycle of property revaluations. In many cases, property valuations have increased and this means that you can expect higher municipal rates and land tax assessments in 2012.

Property valuations have increased across the board, with the state average increases being:

  • For residential properties - 11%;
  • For commercial properties - 8.8%;
  • For industrial properties - 6.9%; and
  • For rural properties 11.5%.

Are the new valuations really reflective of the current market? Does it make sense to pay more for your rates and land tax in circumstances where there is increasing pressure on property prices and land sales? Rates notices will be sent out to all land owners in Victoria in the coming days. If you consider that the new valuation applied to your property is higher than it should be, then you have a limited time to lodge an objection with your local council. We provide more detail on what this means and what you can do below.

Land Valuations

Land values in Victoria are assessed every two years with the most recent round of valuations taking place in January 2012. Valuations are generally conducted by the local municipal councils and are then forwarded to the Victorian Valuer General for approval.

The Valuer General has recently signed off on revaluations meaning that councils can now incorporate the updated land valuations into their next rates notices. It is this valuation process that determines the rate liability and land tax obligations of land owners.

As noted above there has been a significant increase in average land values across the state. Some areas have been affected more than others. In the Melbourne City municipal area for instance, commercial land values increased by more than 15% while values of rural land used for viticulture have, in the Valuer-General's words, been "smashed".

Increases in land valuations will lead to increases in rates and land tax bills. We encourage you to review the new rates notice and consider the valuation attributed to your property. If you feel that your property has been incorrectly valued, you have the right to object to the valuation.

Lodging an Objection

Land owners have a right to lodge an objection to a valuation in respect of their land if they believe it to be incorrect.

After reviewing your rate notice, if you consider the recent valuations to be incorrect you may elect to lodge an objection.

Councils must consider any objection and determine whether a valuation needs to be reassessed. Objections can lead to valuations being reduced. However, Council can also increase a valuation upon review. Accordingly, it is important to be sure that an objection is well founded. We generally recommend that expert valuation advice be obtained before an objection is pursued.

The period for land owners to lodge an objection to a valuation is strictly two months from the date of the valuation being given, so it is important for you to consider this issue as soon as you receive your council rates notice.

How Hall & Wilcox can help

Land owners are encouraged to review their council rates notices to assess whether the increase in land valuation is an accurate reflection of the land value. If you consider the recent valuations to be incorrect or inflated you may wish to consider lodging an objection.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.