Rate Calculations
How are my rates calculated?
Valuers are required to assess three bases of value:
Site Value (SV) - the market value of the land only
Capital Improved Value (CIV) - the total market value of the land plus buildings and other improvements
Net Annual Value (NAV) - the current value of a property's net annual rental. For residential properties this is fixed at 5 percent of the CIV
Hume City Council uses the Capital Improved Value (CIV) for the calculation of rates. This method values the land and all improvements on the land.
Rate income is derived from all rateable properties in Hume City by applying a formula that apportions rates according to the CIV of each property.
The CIV is determined every two years using a process governed by the Valuation of Land Act 1960 and carried out under the guidance and audit control of the Valuer General. Like most Victorian municipalities, Hume City Council uses CIV as its rating valuation base.
Are my rates subject to GST?
The general rate that appears on your rate notice is exempt from GST, however, some additional waste service charges on non-residential properties will be levied GST.
How is the general rate calculated for each property?
Hume City Council has one general rate applied to all classes of property. The amount of general rates you pay is based on the CIV of your property.
Can you provide more information regarding calculating general rates?
In order to calculate individual rates, the total CIV of all rateable properties in the municipality is divided by the rate revenue required by Council as detailed in the annual budget. This produces a 'rate in the dollar', which this year is $0.003893 for 2011/12.
For example, a property with a CIV of $295,000 will pay $1,148.40 in rates: $295,000 x 0.003893 = $1,148.40 excluding any extra waste service charges. This means that the higher the CIV, the higher the rates.
The 'rate in the dollar' is based on Council's calculation of the total rate revenue it needs to generate to ensure that it can meet and satisfy its service delivery objectives and expansion plans, whether in the provision of new facilities or improved access to existing services.
Other than the optional waste charges, Council does not levy any other fixed charges such as a municipal charge or levy a differential rate on industrial or commercial properties.
What can I do if I object to a valuation?
Ratepayers may object to a valuation. The objection can be made in relation to the value of a property or on other grounds specified in the Valuation of Land Act 1960. An objection must be made within two months of the date of the rate notice.
An objection should be lodged on the prescribed form.
Before seeking an objection form please complete a valuation enquiry form which is available from Customer Service or contact Council's Valuation Department. If you object to a valuation, you must still pay your rates by the due date. Failure to pay rates by the required date generally results in interest being imposed.
Any reduction in rates caused by a successful objection will then be credited to your account.