Rates are calculated using the Capital Improved Value (CIV) of your property. Properties with more improvements will pay more rates than those with little or no improvements (eg: vacant land).
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.
Southern Grampians Shire Council have three differential rates:
NB: General Rates 2 & 3 attract the same differential dollar rate.
For example: the rates for a residential property in North or South Hamilton are:
$400,000 (The CIV – Capital Improved Value – adjusted annually)
X 0.00382 (the differential rate or rate in the dollar – adjusted annually)
= $1,312.00 (general rates charge) before any municipal charge or waste service charge.
Differential Rates
Southern Grampians Shire Council currently have three differential rates as follows:
About property valuations
In simple terms, a valuation is an assessment of the amount a property would sell for on a set date.
All properties in the Shire will be valued every year in accordance with Valuation Best Practice Principles determined by the State Valuer General.
Valuations that will appear on your rate notice are based on levels of value as of 1 January each year.
How a valuation is determined
Values are determined by qualified valuers who gather and analyse a range of property information.
To work out how much a property is worth, the council valuer starts by analysing the latest property sales and rental data to build a profile of value levels for different areas and types of properties.
This information is then applied to individual properties throughout the municipality. Land size and location, house value, plus the added value of a garage, garden, driveway and other improvements are also taken into consideration.
If you wish to object to your valuation, please follow the link to the rating valuation objections portal. Please ensure you submit your objection within 2 months of the notice of valuation being given. NB: The portal will not accept objections outside the permitted time.
How valuations impact rates
A revaluation of properties does not mean extra rate revenue for Council.
The capital improved value is used as the basis of rating for the new financial year, which commenced on 1 July every year.
As part of its budget process, Council determines the amount of total revenue it requires to raise from rates.
Property valuations are used as the basis for levying rates and therefore each property’s contribution to Council’s overall rate revenue is determined by its valuation.
Rises in CPI, council spending on infrastructure and the cost of delivering services to residents are all factors considered when determining how much rate revenue needs to be collected.
The Victorian State Government has also introduced a rate capping process which sets the maximum annual increase in rates. Councils who wish to raise rates higher than 'the cap' must follow a formal approval process.
Rates are redistributed according to shifts in property values that have occurred in different parts of the municipality. Some ratepayers may experience a change in their rates, depending on the type of property they own and where it is located.
Changes in property values will vary across the municipality, and these will be reflected in each property’s rate bill.