Property Valuation Adjustment Factors
Valuation of Land Act 2001 determines rating and taxing authorities are to be provided with market-based Adjustment Factors for property valuations when rating authorities are not subject to a revaluation cycle. Adjustment Factors help minimise large fluctuations to valuations that can occur between the revaluation cycles. Currently, revaluations are undertaken on a six year cycle.
Property market fluctuations may vary widely from year to year. In times of buoyant real estate conditions, property values generally increase. In a depressed real estate market, property valuations generally remain static or decrease. Adjustment Factors move in accordance with real estate market trends.
Since 1 July 2007, Adjustment Factors have been refined and provide for locality factors where necessary within each municipality. The Adjustment Factors take into account local market conditions rather than broad municipal averages.
The Adjustment Factors program enables land tax and council rates assessments to be closely aligned with current market values providing a more stable rating and taxing system in Tasmania.
Current Adjustment Factors
Who determines Adjustment Factors?
Adjustment Factors are determined by the Valuer-General.
How often will Adjustment Factors be used?
The factors are determined annually for Land Value and every two years for Assessed Annual Value. Adjustment Factors are not issued when a revaluation is being undertaken within a municipal area as the revaluation is used by the relevant authorities to calculate rates and taxes.
Which properties will have an Adjustment Factor applied?
Adjustment Factors are determined for all properties within a municipal area.
The Valuer-General may determine Adjustment Factors for defined classes of property on a municipality, locality, or group-of-localities basis within a municipal area.
How are Adjustment Factors calculated?
The Valuer-General uses current property sales, rental data and other relevant market evidence to determine the current levels of value of each location and class within the nominated area.
The factors are determined in accordance with current International Valuation Standards Committee protocols.
What are the different classes of property?
The classes of property as determined by the Valuer-General are:
Where can current Adjustment Factors be found?
The Valuer-General published Adjustment Factors for the 2013/14 Rating Year in the Government Gazette on 13 March 2013 for Land Value (LV), Assessed Annual Value (AAV) and Capital Value (CV). AAV Adjustment Factors are used by rating authorities in calculating rates and charges and apply for a two (2) year period.
Property owners may access the Land Value Adjustment Factor that applies to their property using the LIST website.
Details of the current Land Value Adjustment Factor, locality and class of property may be included on land tax assessments.
Can Adjustment Factors be reviewed?
A landowner may apply to the Valuer-General for a review of an Adjustment Factor within a period of 60 days following the publication of the factors in the Government Gazette. The application for review must be in writing and accompanied by a statement of the grounds on which the application is made. Any relevant supporting evidence should be included.
An Adjustment Factor is not a valuation. It is a factor that is used to adjust the levels of value of all property in a locality and class, based on broad market movements. A detailed valuation discussion on an individual property is therefore not relevant. A request for review must relate to the factor applied for the defined class and locality.
If a landowner believed their property has been included in the wrong class or locality, they may advise the Valuer-General, stating the class or locality considered to be correct. The Valuer-General will investigate the matter and notify the landowner of the determination.
Contact: OVG EnquiriesOVG Enquiries
Level 8, 134 Macquarie Street
Hobart TAS 7000
Phone: 03 6233 3715 or 1300 368 550 (local call)
Fax: 03 6233 5694
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