Ever wondered why your council rates are higher than your neighbour’s—or why they’ve suddenly increased? In Australia, local governments use property valuations as the basis for calculating council rates. While this doesn’t mean your rates go up every time your property value increases, it does mean your share of the rates burden can change.
This article explains the connection between property valuation and council rates, how councils determine property value, and what you can do if you disagree with your assessment.
What Are Council Rates?
Council rates are local government taxes used to fund services and infrastructure such as:
- Rubbish collection and recycling
- Road maintenance and street lighting
- Local parks, libraries, and pools
- Planning, building, and community services
- Emergency services levies (in some states)
Each property owner pays an annual rate based on their property’s assessed value and the rate in the dollar set by their local council.
How Is Your Property Valued for Rates?
Councils use one of three common valuation methods to calculate the value of land or property:
Site Value (SV)
- Value of the land only, excluding buildings
- Used in Queensland and parts of NSW
Capital Improved Value (CIV)
- Value of the land plus improvements (house, shed, pool, etc.)
- Common in Victoria and ACT
Unimproved Value (UV)
- Similar to Site Value but adjusted differently for tax purposes
- Used in some regional and rural settings
Each method reflects different aspects of a property’s value and influences how much you pay in council rates.
Who Carries Out the Valuation?
Property valuations used for council rates are typically conducted by:
State government valuers, such as:
- Valuer-General Victoria
- NSW Valuation Services
- Queensland’s State Valuation Service
Or council-appointed contract valuers, depending on the state
Valuations are updated regularly—every 1 to 3 years, depending on the jurisdiction—and reflected in your annual rates notice.
How Council Rates Are Calculated
The basic formula used by most councils is:
Council Rates = (Property Valuation) × (Rate in the Dollar) + Fixed Charges
- Rate in the dollar: Set annually by each council
- Valuation base: Usually SV, CIV, or UV depending on your location
- Fixed charges: May include waste management or fire services levy
Your council doesn’t collect more money just because property values go up—they adjust the rate in the dollar to balance total revenue needs.
Why Your Rates Might Go Up (or Down)
- If your property value increases more than the average in your area, your share of the rates pie grows
- If it increases less than average, you may pay less
- Major renovations, new builds, or land rezoning can also increase your valuation and therefore your rates
How to Check or Dispute Your Property Valuation
If you believe your council valuation is incorrect:
- Review your annual rates notice
- Check the valuation date and property description
- Compare with recent sales or valuations in your area
- Lodge an objection with the Valuer-General or council within the specified time frame (usually 60 days)
A successful objection could reduce your valuation and lower your rates, though it doesn’t guarantee a change.
State-by-State Valuation and Rates Overview
| State/Territory | Valuation Basis | Review Frequency | Appeal Body |
| VIC | Capital Improved Value (CIV) | Annually | Valuer-General Victoria |
| NSW | Land Value (SV) | Every 3 years | NSW Land Registry Services |
| QLD | Site Value (SV) | Annually (urban) | Queensland State Valuation |
| SA | Capital Value | Annually | Valuer-General SA |
| WA | Gross Rental Value (GRV) or Unimproved Value (UV) | Triennially | Landgate |
| TAS | Assessed Annual Value (AAV) | 6-year cycle | Office of the Valuer-General |
| ACT | AUV & CIV | Annually | ACT Revenue Office |
| NT | Unimproved Capital Value | Varies | Department of Infrastructure |
Can a Private Valuation Be Used?
In most cases, no. Councils and state valuation authorities only accept their official valuations for rating purposes. However, a private valuation can support your case if you lodge an objection.
Tips to Manage or Plan Around Rate Changes
- Check for pensioner or concession rebates
- Request a payment plan if rates are unaffordable
- Monitor renovation impacts on valuation before starting large projects
- Compare past rates and budget for annual changes
- Attend council budget meetings to understand rate-setting priorities
Conclusion
Property valuation plays a central role in how council rates are determined in Australia. While you can’t control the rate in the dollar, you can stay informed about how your valuation is assessed, how to challenge it if necessary, and how changes to your property may impact future rates.
By understanding this process, you’ll be better equipped to budget accurately, question your rates notice if needed, and ensure you’re paying your fair share—not a dollar more.
