Colac Otway Shire, along with the rest of regional Victoria, has experienced considerable rises in property values in the last year. While purchasers and renters are already seeing rises in the market, Council will only receive its updated annual valuations from the State Government in the coming months, which will determine how much your rates will be for the year.
Valuations are a key factor in the calculation of Council rates, along with the type and location of the property, however large increases in valuations do not mean a significant increase in rate income for Council. This is because the total revenue to be collected by Council is set through the budget and limited by the Fair Go Rates System, which creates a cap on average rate increases.
Annual property valuations are based on Capital Improved Value of a property and are an estimate of market value of the property, whether residential or commercial, as at 1 January each year. The valuations are conducted by Professional Valuers on behalf of the Valuer-General Victoria, not Council, and are informed by sales data across the Shire from the previous 12 months.
Changes to the valuation of an individual property will determine if the property pays more or less than the average rate increase compared to similar types of properties, in accordance with Council's Rating Strategy, which is currently being reviewed.
Property owners will be advised of the new property valuations when they receive their annual valuation and rates notice in August 2022.
Valuation terminology
We list three different valuations on your rate notice:
- Site Value (SV) - land only value
- Capital Improved Value (CIV) - land value plus all property improvements such as house, fencing, landscaping, garages etc
- Net Annual Value (NAV) - a percentage of value of the CIV
We use the CIV in a formula to calculate your rates.
The notice will explain how ratepayers can find information, query the amount, and even object if they believe that something is incorrect. Property owners have the right to object to the property valuations or the Australian Valuation Property Classification Code (AVPCC) as shown on their notice. Objections need to be lodged within two months of the notice and are independently assessed.
