All properties are valued by qualified independent valuers and overseen by the Valuer General to ensure the accuracy of the valuation.
2018/19 Rates Notices - Q & A's
Why have my rates gone up by so much when the rate cap is 2.25%?
- Rates are calculated based on the valuation of a property. If the valuation of a property has increased by a greater % than the average within the municipality, the rates will increase by higher than the 2.25% cap.
- This does not result in a ‘windfall’ gain for Council.
- The amount by which total rate income can increase for Council is subject to the rate cap of 2.25%.
Will anyone receive a rate decrease?
- Yes. Based on the property valuation data, we estimate that approx. 35% of rate payers will see their rates decrease from the previous year.
Why did you send out letters notifying residents of potentially large rate increases for this year?
- Letters were sent to around 5% of our residential ratepayers to provide an early indication that there may be a significant increase in their annual rates for the 2018/19 year due to the property revaluations.
- This is a similar process to that we have undertaken over the last two valuation cycles (in 2016 and 2014)
- In consultation with our residents in prior years, we were provided feedback that they would like to be given an early indication of significant increases in their rates obligation.
- The purpose of the letters was purely that – to give them a heads-up that they are likely to have a higher than normal increase to their rates this year, and advise them of the two Rates Information sessions we are holding where they are welcome to attend and understand the valuation process Council undertakes.
How often does Council complete valuations?
- Valuations have been completed every two years, as required by the Local Government Act. The last valuation before this year was in 2016.
- Note that from this year, valuations are required to be undertaken every year, so the next valuation will be in 2019.
Does Council complete the valuations?
- No, the properties for the 2018 valuation have been valued by an independent Valuer.
- Effective next year, the Valuer General within the Victorian Government will appoint the Valuers to conduct the valuations within Wyndham.
Can I object against the valuation?
- Yes, you can lodge an objection regarding the valuation that has been determined for your property.
- The objection needs to apply to the actual valuation, not the rates charge.
- The objection must be submitted in writing within 60 days of the issue date on the annual notice.
What if I cannot afford to pay my rates?
- If you feel you are facing difficulty in paying your rates, you should contact council as per the contact details on your rates notice.
- Council officers will be available to discuss your circumstances and payment plans or hardship provisions that you that you may be eligible for.
Valuing a Property
Property values are determined by analysis of market sales and rental evidence, which is then applied to the data on each particular property. Data is compiled on each property over time, through inspection, building and planning permits and other public sources.
The valuer builds a profile of value levels for each different area/property type by analysis of recent sales and leasings. This information is then applied to individual properties, taking into account the different characteristics of each property.
Sales information is available to Wyndham City (under property sales law, Wyndham City must be notified of property sales). Data on property rentals and expenses is obtained from owners and tenants.
For more information download a copy of Property Rates and Valuations - How it affects you.
Explaining Your Rates Notice
Here is an explanation of the different valuations shown on your rates and charges notice,
- Site Value - the market value of the land only
- Capital Improved Value (CIV) - the total market value of the land plus buildings and other improvements
- Net Annual Value (NAV): the current value of a property's net annual rent i.e. gross annual rental less all outgoings - such as Land Tax, building insurance and maintenance costs etc, (excluding Wyndham City rates). By law, NAV must be at least 5 per cent of the CIV. Refer to the Valuation of Land Act 1960 for complete definitions.
Calculating General Rates and Charges
Rates and Charges are set by Council through the annual budget process.
- Municipal charge: A Municipal charge is made on every rateable property to cover some of the administrative costs of Wyndham City.
- Waste Management charge: A Waste Management charge is made on every residential property that has access to Wyndham City’s waste collection and recycling service. A waste management service is not available for commercial or industrial properties.
- Green Waste charge: A Green Waste charge is made on residential properties which have elected for Wyndham City to collect green waste from the property on a regular basis. This is an elective charge and only applied to properties which request this service.
Capital Improved Value
Most municipalities now use Capital Improved Value (CIV) as their valuation base. The formula for calculating General Rates, excluding any additional charges or arrears, is:
- General Rates = x Rate in the dollar
- Details of the Wyndham City valuation of your property are displayed on your rate notice.
Capital Improved Value Basis
For a municipality where the valuation base is Capital Improved Value, the calculation for a residential property worth $450,000 would be:
Capital Improved Value
Rate in dollar
$450,000 x .002538 =
*This is an example, assuming the rate in the dollar is .002538.
Fire Service Levy
The MFB and CFA were largely funded by statutory contributions from the insurance industry, metropolitan councils and the State Government. The Fire Services Property Levy (FSPL) is collected in accordance with the Fire Services Property Levy Act 2012.
The FSPL is made up of two parts:
- a fixed charge
- a variable charge based on your property’s capital improved value
The FSPL charges are itemised on your rate notice. A $50 concession towards the fire services property levy will also be available for eligible pensioners. Separate levies will remain in the MFB and CFA areas in recognition of the different costs associated with funding each service.
In certain circumstances, valuations must be performed between general valuations. These are known as supplementary valuations.
Supplementary valuations are required when properties are:
- physically changed - for example, when buildings are altered, erected or demolished; or
- amalgamated, subdivided, portions sold off, rezoned or are affected by road construction.
Supplementary valuations bring the value of this property into line with the general valuation of other properties within Wyndham City.
Disputing your Valuation
You can request a review of your valuation if you believe it is incorrect. We recommend you contact us as the information required to conduct the review is different for different properties e.g. residential, commercial / industrial or rural property.
If you believe that the Capital Improved Value (CIV) of the property shown on your rates notice to be incorrect, contact us on 9742 0777.
A differential rate is the rate applicable to the different types of properties you may own – i.e. residential, farm, commercial etc.
The Differential Rates are structured in accordance with the requirements of Section 161 of the Local Government Act ‘Differential Rates’ and further information can be found in the 2016/2017 City Budget.
Developed land is identified as any land which is not:
- Commercial Developed Land
- Industrial Developed Land
- Residential Development Land
- Farm Land
- Vacant Residential Land
- Vacant Commercial land
- Vacant Industrial Land
- Vacant Rural Land
Commercial Developed Land
Commercial Land is land on which there is a building and this building was designed or modified and is used for commercial purposes.
Industrial Developed Land
Industrial Land is land on which there is a building and this building was designed or modified and is used for industrial purposes.
Residential Development Land
Residential Development Land is identified as land located within an urban growth zone where:
- A planning permit authorising the subdivision of the land has been issued
- No principle place of residence exists on the subdivided land
Vacant Residential Land
Vacant Residential Land is land on which there are no buildings where you could live and the land is located within a Residential or Township Zone.
Vacant Commercial Land
Vacant Commercial Land is vacant land on which there are no buildings where you could live or operate a business and this land is located within a:
- Business 1, 4 or 5 Zone, or
- Priority Development Zone with an approved precinct plan for commercial use, or
- Special Use Zone with an approved development plan for commercial use, or
- Urban Growth Zone, with an approved precinct structure plan, for commercial use.
Vacant Industrial Land
Vacant Industrial Land is land on which there are no buildings where you could operate a business from or live in and the land is located within a:
- Industrial Business 1, 2 or 3 Zone, or
- Priority Development Zone with an approved precinct plan for industrial use, or
- Special Use Zone with an approved development plan for Industrial use, or
- Urban Growth Zone, with an approved precinct structure plan, for industrial use.
Under the Valuation of Land Act 1960 farm land is land that has the following characteristics:
- is not less than 2 hectares in area; and
- is used primarily for grazing (including agistment), dairying, pig-farming, poultry-farming, fish-farming, tree-farming, bee-keeping, viticulture, horticulture, fruit-growing or the growing of crops of any kind or for any combination of those activities; and
- is used by a business:
a) that has a significant and substantial commercial purpose or character; and
b) that seeks to make a profit on a continuous or repetitive basis from its activities on the land; c) that is making a profit from its activities on the land, or that has a reasonable prospect of making a profit from its activities on the land if it continues to operate in the way that it is operating
Rural Lifestyle Land
Rural lifestyle land is identified as land with a residential dwelling on larger allotments in rural, semi-rural or bush land settings. Primary production uses and associated improvements are secondary to the value of the residential home site use and associates residential improvements.
Rural Vacant Land
Rural Vacant land is identified as being vacant land which is 0.4 hectares or more and not deemed to be a farm under the Valuation of Land