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Rates
and Taxes
A general valuation includes all rateable land in
a municipality. For each separate occupancy of rateable land, three valuations are to be
assessed:
- Net Annual Value
(NAV)
- Capital Improved Value
(CIV)
- Site Value
(SV)
In the 2006/2007 rating year,
74 councils used CIV, 5 NAV and 1 SV in Victoria. SV is used by the Victorian
government to assess land tax.
Rates
All Councils require rate revenue to finance
their annual budgeted expenditure. The primary purpose of council valuation is to
provide a basis for determining the property owner’s contribution to the Council’s
consolidated revenue. The valuation is determined every two years on the
1st of January by qualified valuers’ engaged or employed by your
Council.
The formula for calculating general rates is
the Valuation (i.e. CIV, NAV or SV) multipled by the Rate in the Dollar set by the
Council. Your Melbourne property rate notice will provide specific details on how
your rates are calculated.
Higher property values in a
municipality will not always mean rate increases for property owners. Councils do not
collect more rate revenue just because property values have risen. Rates will simply be
redistributed according to shifts in property values that have occurred in different
areas of the municipality.
It is important to know that the value ascribed to your home by Council
is not always the same as what you would or may receive if you were to sell your
home tomorrow.
Land Tax
Land Tax is an annual tax on the total taxable value
(previously known as ’unimproved value’) of all land owned in Victoria at midnight on 31
December of the year preceding the year of assessment. Land tax is assessed on a calendar
year basis. Assessments are issued between February and June each
year.
Exempt land such as land used for primary
production or a person's principal place of
residence is not included in the calculation. If you
own land with a total taxable value of $225,000 (or $20,000 for trusts subject to
surcharge) or more (excluding exempt land) you must pay land tax. See Land Tax Tables...
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