Objecting to your property’s capital valuation: an overview

1. If you’re a property owner in South Australia, you might have received a Council Rates Notice that appears excessive or doesn’t align with comparable properties in your area.
2. The capital value of your land can impact how much you pay for council rates. If your council rates appear excessive, an incorrect or inaccurate capital value of your property could be to blame. But there are ways to try fixing that. Read our article below to find out how rates are assessed, what factors are used to determinate capital valuations, what can cause an incorrect or inaccurate capital valuation and how we can help you if you’ve been adversely affected.

How are Land Valuations Assessed?

3. The Valuer General conducts valuations on a yearly basis, applying criteria contained within the Valuation of Land Act 1971 (SA) to formally assess a property’s value, specifically for the purposes of rates and taxes.
4. There are two aspects to the determination of a property valuation by the Valuer General:
   • Site Value – this is the value of the site exclusive of any improvements, such as buildings, structures and landscaping. The Site Value includes, but is not limited to:
     • Land size;
     • Zoning and permitted use;
     • Topography; and
     • Local planning and developments.
   • Capital Value – this is the value of the site as a single asset with additional improvements applied to the site. The Capital Value includes, but is not limited to:
     • Buildings, walls and dams;
     • Fencing; and
     • Landscaping and other works on the property.

5. The Site Value is generally used to determine land tax, while Capital Value is used to calculate Council Rates, the Emergency Services Levy, and water and sewerage rates.

Why your property’s capital value might be incorrect and what can be done

6. Sometimes a capital value might be incorrect or inaccurate due to:
   • errors in the characteristics of the site—that is, the capital value has been calculated assuming your site has certain characteristics that it doesn’t actually have (characteristics can include the land size, improvements to the property, or incorrect understanding of the condition of the property being used); and
   • heritage, planning or environmental restrictions applying to your property which could limit the use of your property or negatively affect value—which has been properly reflected in the capital value assessment.
7. If you think your property’s capital value is inaccurate, your first step should be to gather relevant information. That could include planning certificates, zoning information, and photographs of the property or any other reports about the property.

Lodging an objection

8. If you’ve considered your property’s capital value and you have your supporting documents, and you think your property’s capital value is inaccurate, chances you’d like to do something about fixing it!
9. Generally, the first step is to lodge an objection in writing with the Office of the Valuer General within 60 days of receiving your first rates notice, and after that you’ll generally receive a determination from the Valuer General. The Valuer General could decide your property’s capital value is to high, just right or even to low—and that could lead to your property’s capital value increasing. So before taking this step, it’s prudent to assess your position and risk.
10. But the Valuer General’s determination isn’t always the end of the line. If you aren’t satisfied with the Valuer General’s decision, you can lodge an appeal to the South Australian Civil and Administrative Tribunal (SACAT) and provide further submissions to support your objection.
11. Lodging an objection with the Valuer General and even taking the matter to SACAT if you aren’t happy with the Valuer General’s determination, can come with considerable risk—as well it having the potential to be a time-consuming and stressful process.
12. At PGC Legal, we pride ourselves on giving our clients pragmatic, timely and cost-effective advice, helping our clients to make the right decisions at the right time.
13. If you or someone you know is considering lodging an objecting or appealing a determination but would like some help navigating the legal complexities involved, get in contact with our team—we’re Adelaide lawyers, and are here to help.

This information is general in nature and does not constitute legal advice.