Valuation of Land Act 2001 provides that rating and taxing authorities are to be provided with market-based Adjustment Factors for property valuations when rating authorities are not subject to a Fresh Valuation (revaluation) cycle.
Adjustment Factors are used to adjust the levels of value of all properties in a locality and class in between the 6-yearly fresh valuation (revaluation) cycle. The factors are based on broad market movements and in times of buoyant real estate conditions, the factor generally increases. Likewise, in the event of declining property values, the factors generally decrease.
The Government statutory valuation for a property is used as the basis for rates. Each year, local councils and the State Revenue Office apply the relevant Adjustment Factor to the government valuation for your property, to arrive at a figure which is reflective of the current property market. Rates and taxes are applied based on this calculated figure.
An Adjustment Factor is NOT a valuation and your Government valuation is not affected by the Adjustment Factors.
An Adjustment Factor is NOT applied on an individual property basis.
Who determines Adjustment Factors?
Adjustment Factors are determined by the Valuer-General.
How often are Adjustment Factors determined?
The Adjustment Factors are determined in March -
- annually for land value
- every two years for Capital Value and Assessed Annual Value.
There is no Adjustment Factor determined for municipalities undergoing a Fresh Valuation (revaluation) because the revaluation itself resets the values in each locality and class of properties across a municipality.
What properties are affected by an Adjustment Factor?
Adjustment Factors are applied to a defined class of properties in a selected area. This could be a whole municipality, a locality, or group of localities. They are not applied on an individual property basis.
How are Adjustment Factors calculated?
Property sales information, current rental data and a range of relevant market evidence are used to determine the levels of value of each class of properties within a selected area.
What are the different classes of property?
There are 6 primary classifications -
- Residential - Properties that are able to be occupied by people on a temporary or permanent basis for residential purposes.
- Commercial - A property involved in the trading of goods, services, information or money.
- Industrial - The predominant use of a property involved in the production and or storage of goods.
- Primary Production - The carrying on of one or more of the following activities in a business-like manner, substantially on the land, with a reasonable expectation of profit: (a) Cultivating land to sell the produce of the cultivation
(b) Maintaining animals or poultry for sale or selling their natural increase or bodily produce
(c) Keeping bees to sell the honey
(d) Commercial fishing and cultivating aquatic plants or animals, including the preparation for fishing and the storage and preservation of fish and fishing gear
(e) Cultivating or propagating for sale plants, seedlings, mushrooms or orchids
- Community Services - Specialised property used for the provision of services to the Community by State or Local Government, Community or Religious organisations. These services include police, fire, hospitals, schools, libraries, museums, churches, halls, and some sporting facilities.
- Other - Property with limited use due to planning, location constraints or activities conducted on the land.
Current and previous Adjustment Factors?
OVG Adjustment Factors 2018 (347Kb)
OVG Adjustment Factors 2017 (366Kb)
OVG Adjustment Factors 2016 (334Kb)
OVG Adjustment Factors 2015 (119Kb)
OVG Adjustment Factors 2014 (341Kb)
OVG Adjustment Factors 2013 (320Kb)
Can Adjustment Factors be Reviewed?
Yes, there is a formal process under the Valuation of Land Act 2001 for the Valuer-General to review an Adjustment Factor.
It is important to keep in mind that an Adjustment Factor is NOT a valuation. It adjusts the levels of value of all properties in a locality and class.
Therefore, a review of the adjustment factor cannot be solely on your individual property. The request for review can only be on the basis of how the factor was applied. For example, if the factor was applied to a whole municipality, then the review must relate to the whole municipality. Likewise, if the review was based on a locality, then the review is on that basis.
An application for review must be in writing and must be accompanied by a statement of the grounds for the review and relevant supporting evidence. It needs to be lodged with the Valuer-General within 60 days of the notice appearing in the Government Gazette.
The Valuer-General will consider the application and advise you in writing of the outcome.