Shire of Toodyay
2015 Rating Review
Frequently Asked Questions
Why has the Shire of Toodyay sent this letter?
Pursuant to Section 6.28 of the Local Government Act 1995, the Shire is required to
review and make recommendations to the Minister for Local Government as to the
method of valuation to be used for rating purposes.
The Shire of Toodyay has given an undertaking to the community to review the current
rating for unimproved valuations in residential areas of the Shire.
What is the difference between UV and GRV?
Unimproved Values (UV) are based on land only and exclude any building or
improvements. These values are applied to land used predominantly for rural purposes
only. UV properties are revalued every year.
Gross Rental Values (GRV) are based on the gross annual rental value that the land,
buildings and improvements might reasonably be expected to realise if let on a tenancy
from year to year. GRV properties are revalued every five years.
How do valuation methods determine rates?
The Valuer Generals Office provide all property values to the Shire of Toodyay and these
are classed as either GRV or UV depending on predominant land usage. This value is
then multiplied by either the GRV or UV rate in the dollar which is determined by Council
each year during the budget process and is how rates are calculated for each individual
property.
If my property changes from UV to GRV will my rates increase?
Your rates may increase or decrease and will depend on both the valuation provided by
Landgate and the rate in the dollar as determined by the Shire of Toodyay Council
during its annual budget process. As GRV Valuations are only undertaken every 5 years,
rates under GRV are much less volatile.
What is Council’s reason for reviewing the valuation methods used?
Council’s intent is that the review of rating methods be revenue neutral (apart from the
% increase to the overall rate revenue). It is not planned that the Shire will collect
increased rate revenue next year because of the strategy; rather, the mix of the total %
of UV to GRV will change. The Shire of Toodyay’s current rating mix consists of 17%
GRV and 83% UV. As a result of the change some owners will pay more and some will
pay less which is the case every year for UV or every five years for GRV when new
valuations are received.
However, when properties are changed from UV to GRV they will not be paying the same
GRV rate in the dollar as the rate in the $ that is currently imposed.
What happens if I do not return this Declaration?
If this Declaration is not returned it will be assumed that the land indicated is used
predominantly for non-rural purposes and Gross Rental Value (GRV) will be applied
rather than the current Unimproved Value (UV).
Who determines the value of a property?
Valuations are carried out by the Valuer General’s Office of Landgate however, is is the
Minister for Local Government who will approve any changes to valuation methods.
When will these changes take place?
Our goal is to have these changes in place for the 2016/2017 financial year and will be
progressed as follows:
1.
Officers will consider your request/response using a range of techniques from
aerial photographs to site visits, to determine if the change is considered
appropriate.
2.
A report will be prepared for the Council to consider and adopt the changes.
3.
Details of the properties with supporting documentation will be sent to the Minister
for Local Government for approval.
4.
Information on the properties will then be sent to Landgate to enable a GRV to be
determined. This information includes providing Landgate with a copy of building
plans and other improvements to the property to assist with their determination.
The timeliness on this valuation is largely dependent on Landgate and is outside
the control of the Shire of Toodyay.
5.
Landgate will provide the Shire of Toodyay with new GRVs and staff will update rate
records prior to the issuing of new rate notices.
As the completion of this Project includes participation from both Landgate and the
Minister for Local Government, we are unable to guarantee that the process will be
completed for the 2016/2017 financial year although that is the intention.
Will a change in valuation method affect my current use of the property?
If the method of valuing your property changes from UV to GRV it does not affect, or
change, the current land uses applicable to your property.
What if I think my property use will change in the future?
If your property use changes in the future you can apply to the Shire of Toodyay to have
it reassessed.
Additional declaration forms can be downloaded from the Shire of Toodyay website
www.toodyay.wa.gov.au.