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How we calculate your rates and value your property

How we calculate your rates and value your property

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A valuation of your property is an assessment of the market value on a particular date. We use this assessment to set your rate and valuation notice.

All properties have valuations as at 1 January every year.

How we calculate your rates

Council uses the Capital Improved Value (CIV) to calculate your rates.

This is simply the value of the land, building and any other improvements, multiplied by a differential dollar rate. The rate changes depending on how the land and any improvements are used.

About Capital Improved Value

The Capital Improved Value is multiplied by the rate in the dollar to calculate the general rates to be paid by each assessment.

For 2023/24, the following differential rates in the dollar are:

Vacant Land Differential Rate: 0.0045686
Derelict Land Differential Rate: 0.0045686
Retirement Village Differential Rate: 0.0011422
Residential Differential Rate: 0.0015229
Commercial Differential Rate: 0.0038072
Industrial Differential Rate: 0.0040356
Cultural and Recreational Lands Act Rate: 0.0015229

How it is calculated

For example: the rates for residential property are:

$750,000.000 (The CIV valued)

x 0.0015229 (the differential rate or rate in the dollar)

= $1,142.17 (annual rates payable).

Who values your property

Property valuations are carried out by the Valuer-General Victoria who works for the state government.

They provide a consistent quality of valuations throughout the state.

Property valuations are made under the Valuation of Land Act 1960 and applied by the Local Government Act 1989 to raise and collect rates and charges revenue.

Councils do not get more or less money due to property prices increasing or decreasing. The revaluation simply re-apportions the amount that each ratepayer contributes.

How your property is valued

The Valuer-General works out 3 valuations per property.

These are shown on your notice:

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Site Value (SV)

The market value of the land only.

Capital Improved Value (CIV)

The total market value of the land, building and any other improvements in respect to each rateable property. The Capital Improved Value is multiplied by the rate in the dollar to calculate the rate to be paid.

Find out more about the Capital Improved Value.

Net Annual Value (NAV)

The current value of a property’s net annual rental, minus all outgoings such as:

land tax
building insurance
maintenance costs.

These do not include Council rates.

For residential properties, this is a mandatory 5% of CIV. For all other properties this is a minimum of 5%.

Supplementary valuations

If a property changes, a supplementary valuation may be needed. Properties can change for a variety of reasons.

Valuations must be updated to reflect things like:

subdivisions
buildings constructed, changed or demolished
rezoning
occupancies. A property may be adapted for multiple occupancies which are then separately rateable.
new leases.

Properties valuations also take into consideration the sale prices and rental returns of similar properties.

The Valuation of Land Act 1960 provides for a wide range of reasons for supplementary valuations.

When determining the supplementary value, the valuer determines what the property value was on 1 January of each calendar year.

The supplementary value may not necessarily reflect the market value today.

Objections to a valuation

You may object to the valuations shown on your annual valuations, rates and charges notice.

Your objection must be lodged within two months from the date of the rate and valuation notice.

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Before objecting to the valuation

Before submitting an objection, we encourage you to discuss your concerns with the independent Valuation team.

This often answers any concerns you may have without the need to lodge a formal objection.

You can email rates.valuers@knox.vic.gov.au and they will contact you to discuss your concerns.

Grounds for valuation objections

To object to your property's valuation, you must show either:

the value assigned is too high or too low
the interests held by various persons in the land have not been correctly apportioned
the apportionment of the valuation is not correct
lands that should have been included in one valuation have been valued separately
lands that should have been valued separately have been included in one valuation
the person named in the notice of valuation, assessment notice or other document is not liable to be so named
the area, dimensions or description of the land are not correctly stated in the notice or other documents.

Make an objection

Objections can be made online on a state government portal.

Your objection must:

detail why you are objecting
include any evidence that supports your objection.

Object to your property valuation

The objection process

We will send you an acknowledgement of receipt of your objection.

You will be contacted by the valuations team to organise a time to discuss your concerns and inspect your property.

They will review the valuation. They look at factors including surrounding property sales, data and condition.

They may alter the original valuation.

You will be advised in writing of any adjustment. This will happen within two months of submitting your objection.

The Valuer-General has two months to advise all parties of the decision.

Not satisfied with the decision

You may take the matter further if:

you are not satisfied with the Valuer-General's decision
the two month period for the Valuer-General has expired.

The Valuer-General may refer the matter to the Victorian Civil Appeals Tribunal. Your objection can also be treated as an appeal to be heard by the Supreme Court.

More about valuation

Further information on the valuation process is available through the Victorian state government.

Need help?

Email Rates.Valuers@knox.vic.gov.au and we will get back to you.

Or call our Customer Service team on 9298 8000.