Home owners could face annual property valuations under a state government plan to overhaul the system.
If the proposed reforms go through, property valuations will be conducted annually instead of every second year, and the state valuer-general will assume responsibility of the revaluation process from local councils. Property valuations are used to determine council rates and land taxes.
Wyndham council chief financial officer Binda Gokhale said the council had some concerns that the year-on-year change in rates might fluctuate due to annual valuations.
“We are conscious to ensure we communicate any changes extensively with our community,” Ms Gokhale said.
“Ratepayers need to clearly understand the make-up of their annual rates notice and we look forward to support from the state in this regard as part of their proposed role in the valuation process.
“It is important to note that council does not get a ‘free kick’ in rates revenue from moving to annual valuations. Council rates will still be determined in line with its rating policy and considerations of any state imposed rate cap.”
Municipal Association Victoria president Mary Lalios said the proposals would have a range of unintended impacts on councils, including potential job losses for councils that employ valuers.
“Parliament should halt these reforms until the consequences are clearly understood and suitable solutions are identified to minimise the impacts,” Cr Lalios said.
A state government spokesman said the government would work closely with the MAV to implement reforms that “will improve the efficiency, consistency and transparency of property valuations in Victoria”.
“We said we’d consult on these reforms with the local government sector, and that’s exactly what we’re doing,” the spokesman said.
The reforms will go before Parliament as part of the spring taxation bill.
