CONFUSION reigns across Victoria as Land Tax notices are currently been distributed using valuations based on 1st January 2010 for the first time, according to the Australian Property Institute.
API Victorian president Steve Simpson said the previous land tax assessments were based on valuations two years earlier at a relevant date of 1st January 2008.
“Every two years that property owners receiving their land tax notices need to be aware that the site valuation is the market valuation of the land at 1st January 2010. The site value does not include the value of improvements.
“The rates applied to the valuation are determined by State Government for Land Tax assessments, similarly rates applied to local Council’s rate notices are determined by Local Government,” he added.
Simpson said councils across Victoria have already issued their rate notices for 2010/2011 based on the new valuations and most people would have seen the new valuations in July/August 2010 on their Council Rate Notice.
A general valuation or revaluation is conducted by qualified Valuers for all Councils throughout Victoria and the site values (land values) are provided to the State Revenue Office after being certified by the Valuer General Victoria.
The Municipal Group of Valuers, a discussion group of the Australian Property Institute, is the leadership group of municipal property professionals within Victoria.
Municipal Group of Valuers chairman Pauline Lawson explained that a general valuation is the process of assessing the value of all properties on the same date.
“The valuations that will be used for Council rates from 1st July 2010 and Government land tax effective 31st December 2010 are a snapshot of market values as at 1st January 2010, not current market conditions.
“A valuation is an assessment of the market value of a property, at a specific date. The value of each property is based upon property sales which have occurred around the date of valuation and in accordance with relevant legislation and legal precedent,” she concluded.
Australian Property Journal
