Property values, rates and rate capping – what it will mean for you
Moonee Valley property owners can expect to receive their 2016/17 rates notice by late August. Our rates income will increase by just 2.5 per cent this year – in line with the rates cap. However, not all property owners will see a 2.5 per cent rate increase when they receive their rates notice.
This is because every two years all properties throughout Victoria are revalued to reflect their current market value (as at 1 January 2016). This process is used by councils to determine the amount of rates property owners each contribute.
Increases in property prices as a result of a revaluation do not increase council’s overall rates income. What a revaluation does do is to redistribute the rates contribution across all properties in the municipality. In other words it changes the mix of ‘who pays what’, with some paying more and others less.
For additional information about how rates are calculated see the rate cap flyer (pdf, 220KB).
Frequently asked questions
Why do we need a valuation?
A valuation of property values in Moonee Valley tells us the value of a property in relation to all other properties. This relativity determines how the total rates cost is shared.
How does a valuation work?
Property values are determined by analysing property sales and rental evidence.
It is the relativity, not necessarily a change in property value, that decides whether the rates on an individual property will change following a general valuation. The more often we do our valuations, the fairer our rating process becomes.
Does a revalution mean a rate increase?
A revaluation does not mean there will be a rise in the total rates we collect. A revaluation simply redistributes the amount paid based on a fairer and updated valuation.
For more information
If you have any concerns when you receive your 2016/17 rates notice or would like more information on valuations more please contact us on 9243 8888.