The Victorian State Revenue Office (SRO) is currently issuing land tax assessments for the 2019 land tax year. These assessments are generally listing properties at significantly higher values than the 2018 levels.
The valuations used for this year’s assessments are based on values as at 1 January 2018, prior to the downturn of the Victorian property market. As a result, in some cases, the valuations used by the SRO do not reflect reduced market values.
If you have received a higher than anticipated Victorian land tax assessment you have 60 days from receiving your land tax assessment to lodge an objection. If you are outside of the 60-day time-frame, you can make an application for an out of time objection (although the SRO is not bound to accept it).
Some factors to consider, or steps to take, when applying for an objection on the land site values include:
1. Obtaining an independent market valuation or appraisal for the unimproved land as at 1 January 2018. The Victorian Valuer-General’s website also has resources, including a list of median house prices by suburb from 2007 to 2018.
2. Considering historical council rates notices to compare the Capital Improved Value (CIV) and Site Values of your land as at 1 January 2018 and 1 January 2017 to assess whether the change in values is in line with the market movements.
3. Comparing the sale price of similar properties in your local market on or about 1 January 2018 and compare this to the CIV and underlying Site Value identified for your land.
Please feel free to contact us for information on how we may be able to assist with managing your land tax exposure and/or land tax assessment objection process.