Brimbank Council Meeting No. 635 16 July 2024

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12.8

Return Of General Valuation 2024

12.8

Return of General Valuation 2024

Directorate

Corporate Services

Director

Mark Stoermer

Manager

Andrew Brae

Attachment(s)

1. Return of General Valuation 2024 [

12.8.1

- 2 pages]

Purpose

For Council to consider return of the General Valuation 2024 for all rateable and non

rateable properties made by the Valuer-General, pursuant to Section 2 of the

for the purposes of the

.

Officer Recommendation

That Council adopts the return of the General Valuation 2024 for all rateable

and non-rateable properties made by the Valuer-General, pursuant to Section 2

of the

for the purposes of the

, as shown below:

a. 81,030 rateable assessments with total valuations of:

Site Value $40,904,508,507

Capital Improved Value $61,487,823,503

Net Annual Value $3,166,973,508

b. 1,685 non-rateable assessments with total valuations of:

Site Value $1,095,010,500

Capital Improved Value $1,423,620,000

Net Annual Value $76,467,500

Background

On 23 May 2023, the Valuer-General Victoria (VGV) gave notice to cause a General

Valuation of all rateable and non-rateable properties within Brimbank. The General

Valuation process was undertaken in accordance with the Valuation Best Practice

Specifications Guidelines 2024 (Guidelines).

Matters for Consideration

Analysis

Stages of the General Valuation process Stage One commenced in July 2023, where

general preparation of data was carried out and statistical analysis of recent sale data

against all properties was submitted to VGV. Stage Two involved data collection and

analysis, and comprised collection of sales and leasing data, inspections of property

sales, confirmation or collection of property attributes, and any remedying of data gaps

identified.

Stage Three comprised the application of Stage Two levels of value and the valuation of

all properties. In completing the General Valuation, Stage Four of the process involved

the return of the final valuation, quality assurance, completion of the VGV’s final report

and provision of the returned valuation and data to Council.

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Methodologies and Analysis

Under Section 157 of

, Council may adopt one of the following three valuation

methodologies to value properties in its municipality:

• Capital Improved Value (CIV) - the land and other improvements including the

house, other buildings and landscaping

• Site Value (SV) - the value of the land plus any improvements which

permanently affect the amenity or use of land, such as drainage works, but

excluding the value of buildings and other improvements. Also referred to as the

‘unimproved market value of the land’

• Net Annual Value (NAV) - the value of the rental potential of the land, less the

landlords’ outgoings (such as insurance, land tax and maintenance costs). For

residential and farm properties this must be set at 5 per cent of the CIV (Section

2 of the Valuation Act).

Council applies the CIV of each rateable property in determining rates charged, as it

provides the most equitable distribution of rates across the municipality.

The table below shows the number of rateable properties, the CIV, SV and NAV returned

in 2023, by comparison to the General Valuation 2024.

Valuation

Year

Number of

Properties

CIV

SV

NAV

2024

81,030 62,069,717,503 40,904,508,507 3,193,014,553

2023

80,439 61,006,189,003 41,076371,007 3,141,800,953

Growth %

0.73

1.74

-0.42

1.63

These figures indicate property growth has continued in the municipality, with an

additional 591 properties becoming rateable. Most of the growth over the past year has

been in subdivisional development on existing allotments. The table below provides a

breakdown by property categories of the percentage movement of CIV, SV and NAV from

the 2023 to the 2024 General Valuation Return.

Residential Commercial Industrial

Rural

2023 & 2024 CIV

-0.40

4.30

9.17

-2.62

2023 & 2024 SV

-1.14

2.40

2.96

-3.76

2023 & 2024 NAV

-0.40

6.96

9.76

-2.62

Residential Property prices have slightly decreased in the current revaluation year. This

has been due to high interest rises since May 2022 affecting borrowing capacity. Overall

CIV has decreased by 0.40 per cent.

Commercial property values have increased moderately due to limited sales and leasing

activity. Industrial properties have also increased due to the continuing demand for

warehouse properties in the current revaluation year.

Council does not collect more rate revenue because of the Revaluation. Rates are

redistributed according to the shifts in property values that have occurred across the

municipality. If the value of a property has increased by a greater percentage than the

average increase in property values across the municipality, the owner of that property

will pay a greater percentage of the rates.

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If the value of the property has increased by a smaller percentage than the average

increase in property values across the municipality, the owner of that property will pay a

smaller percentage of the rates.

Non-rateable assessments include properties owned by Council and government.

Properties used for a charitable, religious or educational purpose are also categorised as

non-rateable.

The Declaration, at

Attachment 1

, provides certification, pursuant to section 7AD and

7AF of the

, that the General Valuation is true and correct and is considered

suitable for use by Council.

Community Engagement

It is a statutory requirement, under the

, to conduct an annual General

Valuation.

Resource And Risk Implications

Resource requirements can be met within the Annual Budget 2023/2024.

Regulatory:

legal, legislative or regulatory implications including the rights/obligations

of stakeholders

• Yes - Legal requirements, as per background section above.

Legislation/Council Plan/Policy Context

This report supports the Council Plan 2021-2025 strategic direction and objective of:

4. Leadership and Governance - A high performing organisation that enacts the

vision and decisions of Council through the delivery of quality and innovative

services - A fairer place for all

• High Performing and Accountable - Our workforce strives to enhance services and

liveability for the Brimbank community.

This report complies with

,

,

Valuation Best Practice Specifications Guidelines 2024.

Council officers contributing to the preparation and approval of this report, have no

conflicts of interests to declare.

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Attachment 12.8.1

Brimbank Council Meeting No. 635 16 July 2024

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Attachment 12.8.1