Council Rates and Land Tax

Over the last month you will have received your new council rate notice for the 2021/2022 rating year which commenced on the 1st of July 2021.  Each year, all rateable properties are revalued with a valuation date of 1 January.  The valuation included in your 2021/2022 rate notice will refer to the valuation as at 1 January 2021. 

The Valuer-General determines the valuation of a property as part of the annual general valuation process.  Once a general valuation is completed, councils receive the valuations to calculate the rates you pay.  The valuation base used in Ballarat to calculate your council rates is the Capital Improved Value (CIV), ie the value of the land and any improvements on the land.  

Changes in the rate in the dollar applied to the Capital Improved valuation by council together with changes in the property value between annual valutions will impact the amount of rates payable. It is always important to critically review the valuations applied to your property each year to ensure you are paying the correct amount of rates and Land Tax if applicable. Councils also collect the fire services property levy on behalf of the State Revenue Office.  This levy is included in your rates notice.

For the purpose of Land Tax, the site value on your council rate notice is used to calculate the amount payable should your property be taxable. Site value is the unimproved value of your land, which means it excludes capital improvements such as buildings. From the 2020 land tax year, valuations are made annually as at 1 January of the previous calendar year.  Therefore, 2020 land tax assessments were based on valuations made on 1 January 2019 while 2021 land tax assessments are based on the valuations made on 1 January 2020. 

On your land tax assessment, site value is referred to as taxable value. You can find the total taxable value of your land on the right hand side of your Statement of Lands, which accompanies your assessment.  You pay land tax if the total taxable value of all the Victorian land you own, individually or jointly, as at 31 December, is equal to or exceeds $250,000 ($300,000 from the 2022 land tax year). The rate of tax you pay depends on the total taxable value of all your taxable land.