Property valuation and calculating rates

Rates revenue helps fund the services Maroondah City Council provides to ratepayers and residents. This revenue is collected through charging rates to the owner or occupier of every property in the municipality. 

Council aims to charge ratepayers equitably - by using property values to fairly distribute rates charges.

Have your say on a Valuation Averaging Mechanism

It was recommended in the 2020 Local Government Rating System Review Final Report that the Victorian Government examine the merits of a valuation averaging mechanism to reduce the impact of large changes in valuations on rates.

Until 31 August 2023, Local Government Victoria is seeking feedback from the public regarding the application of a Valuation Averaging Mechanism.

As part of this consultation process, a Discussion Paper has been prepared, including modelling of the potential impacts of a Valuation Averaging Mechanism.

Local Government Victoria will evaluate the public feedback and will present to the Minister for Local Government for consideration later this year.

You can find out more about consultation, read the discussion paper and have your say on the Victorian Government’s Engage website.

Consultation closes 31 August 2023.

How are properties valued?

Valuations are undertaken annually in accordance with the Victorian Government’s Valuation of Land Act (1960). 

The valuation process is centralised and annualised with the Victorian Valuer-General responsible for the undertaking of all valuations (used for rates, fire services levy and land tax purposes) in Victoria. 

How often does a revaluation occur?

A revaluation of all properties in the municipal boundary occurs every year. Properties are valued as at 1 January each year. The valuation which appears on your rate notice becomes effective on 1 July of the year it was valued, ie. 1 January 2023 valuation becomes effective 1 July 2024.

How will an annual valuation affect my rates?

Revaluations do not impact on Councils’ revenue which is determined by the budget process. A revaluation simply reapportions the rate burden. Annual valuations, rather than valuations every two years, are expected to improve equity and transparency in the distribution of rates.

Valuation definitions

SV - Site Value

The SV is the value of the land only.

CIV - Capital Improved Value

The CIV is the assessed market value of the property including both land (SV) and all improvements (such as buildings, fencing, sheds). This is the valuation that Maroondah use to calculate the general rate.

NAV - Net annual Value

The NAV is 5 percent of the CIV.

What if I don't agree with my valuation?

If you disagree with the value that has been allocated to your property, you may lodge an objection within two months of receiving your rates notice.

Objections can be lodged online, directly with the Victoria State Government Valuer General’s Officer. The Valuer General’s representative will then handle the matter directly with you.

Prior to submitting an objection, we encourage you to contact us first to discuss your views and concerns.

I have lodged an objection but I’m still awaiting the result

The objection process may take a few months before you will be advised. Objections are required to be approved by the Valuer-General prior to Council adjusting the rates. During this time, payment of your rates by your chosen payment option should be made.

Does the Valuer-General review the objection?

Objections are undertaken by the office of the Valuer-General Victoria.

How are rates calculated?

Council collects rates from residents and businesses in its municipality to help fund local infrastructure and services.

In determining the level of rate income, Council carefully considers:

  • the long-term vision, aspirations and needs of the community
  • capital works and services required throughout the year
  • all sources of non-rate income, such as government grants and fees and charges.

The Victorian legislation that enables councils to levy rates and charges is the Local Government Act 1989.

Rate in the dollar

Calculating how much each property owner pays in rates involves:

  1. determining the total amount of rate revenue required
  2. dividing this across the total value of all rateable properties to establish a rate in the dollar.

Total rate income required = (Total income required) - (Income from other sources)

Rate in the dollar = (Total rate income required) ÷ (Total Capital Improved Value of the municipality)

The current rate in the dollar in Maroondah is:

Rate type

Rate in the dollar

General Rate

Residential: .00191439¢

Differential Rate

Commercial: .00229727¢

Industrial: .00229727¢

Vacant Land: .00287159¢

Derelict Land: .00574317¢

Rates to be paid by each property

Council determines the amount to be paid in rates by applying the rate in the dollar to the assessed Capital Improved Value of each property. Hence the higher the property value, the more rates paid; the lower the property value, the less rates paid.

Rate to be paid by the property = (Rate in the dollar) x (Individual property CIV)

pictorial explaining how rates are calculated. Council rates / combined value of all rateable properties = 'the rate in the dollar' x market value of your property = your general rates

Rate capping

In 2016, the Victorian Government introduced rate capping legislation to ensure that the overall rates collected by Councils are only able to increase by a capped percentage. Each year the Minister for Local Government sets this percentage cap.

The rate cap for 2023/2024 is 3.5%. This means the average property rate must not be more than 3.5% higher than last year.

What happens to my rates?

Rate capping restricts the increase to the average property rate . An increase in the total revenue may not increase your rates, as this depends on the value of your property.

Your rates are calculated based on your property’s value and the rate in the dollar. See how your rates are calculated in the tab above.

See more about the State Government's Fair Go Rates System


More information

If you have a query about your rates notice, please call us on 1300 88 22 33 or visit any of Council's service centres and our officers will be happy to help.