The City of Casey has 109,000 rateable properties. As with all other Victorian municipalities these properties have been valued for rating purposes under State Government legislation on levels of value that existed as at 1 January 2016 (the 2016 General Valuation). The valuation will be used for rating purposes from 1 July 2016 until 30 June 2018.
The Council is required to return the following three valuations, each of which is defined in the Valuation of Land Act 1960, on each rateable property in the municipality.
- Site Value (SV): what the land is worth minus the house, factory, shop, etc
which is the market value of the land excluding the value of any improvements on the land. This valuation base is used for land tax purposes by the State Revenue Office.
- Capital Improved Value (CIV): what the land and any improvements (factory, shop, house, Shed, Pools etc)
which is the market value of land including any improvements on the land. This valuation is used by the City of Casey, and most other municipalities in Victoria, for rating purposes.
- Net Annual Value (NAV): the approximate amount the property owner would receive if they rented the property for 12 months after deducting allowable outgoings
which is a rental value. Very few Councils use this valuation base for rating. The water authorities use Net Annual Value, discounted to a previous date, as a charge for parks and drainage improvements.
The 2016 General Valuation program has been based on the State Government’s Valuer-General specifications known as 'Valuation Best Practice'. The specifications must be complied with by all Councils. They provide for the general valuation to be undertaken in certain stages and with defined outputs all of which are audited and subsequently certified by the Valuer-General.
The program comprises five stages being:
This stage involves general preparation, planning and statistical analysis of the previous valuation against recent sales.
- Preliminary Valuations (Residential & Rural Properties)
This is the major stage for residential and rural valuations when the majority of inspections and field data verification is completed. Preliminary valuations are completed at this Stage and subsequently reviewed in Stage 4.
- A – Specialist Properties
This stage comprises the valuation of all specialist properties. In Casey these include the shopping centres, quarries and the landfill site. Valuation conferences are held with the Valuer-General and with other municipal valuers to compare levels of value.
B – Commercial and Industrial Properties
This stage comprises the valuations of commercial and industrial properties. Valuation conferences are held with the Valuer-General and other municipal valuers to compare levels of value.
- Review and Final Valuations - Residential & Rural Properties
This stage comprises a review of Stage 2 preliminary valuations based on an analysis of subsequent sales evidence.
- Valuation Return
This stage comprises the return of the valuation to the Council, completion of valuers’ final report and provision of the returned valuation and data to the Valuer–General.
The Council’s valuers submitted and received certification from the Valuer-General for all Stages.
The return and adoption of the 2016 General Valuation, as with previous General Valuations, can be publicly perceived to increase rates.
There are two issues that need to be understood with the return and adoption of a General Valuation.
- The total Capital Improved Value of the 109,000 rateable properties returned and adopted by the Council does not determine the rate revenue available to the Council. The Council’s rate revenue requirement is determined solely by Council’s budget process.
- The rating valuation is the means by which the rate revenue requirement of Council is distributed. The sole reason for a successive 2-yearly General Valuations is to re-establish the market value relativity that exists between rateable properties for the purposes of distributing the Council’s rate revenue requirement.
There is an annual right to object to a rating valuation being within two months of the date of the rate and valuation notice.
Please contact the Council on 9705 5200 for any further information.