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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.

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 2022 valuation becomes effective 1 July 2022.

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.

If you have an issue with your valuation, please contact Council in the first instance on 1300 88 2233 to discuss the valuation.

You have the ability to object to the valuation and Council will advise of the objection process. An objection can only be undertaken by following the Valuer-General requirements, within two months of the date of issue shown on the Rate Notice. Objections received after this date will not be considered.

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. 

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: .00180907¢

Differential Rate

Commercial: .00217088¢

Industrial: .00217088¢

Vacant Land: .00271361¢

Derelict Land: .00542721¢

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)

How your rates are calculated

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 2022/2023 is 1.75%. This means the average property rate must not be more than 1.75% 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. 

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