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Infographic showing the property valuation cycles for land tax and council rates in different Australian states.

Understanding Property Valuation Cycles

Australian states conduct statutory valuations on a periodic basis to determine property values for calculation of land tax and council rates. Valuation cycles vary across different states from annual to 5-yearly revaluations.

Knowing the frequency of these valuation cycles can help homeowners understand how regularly their property’s assessed value gets updated for tax purposes.

What are Statutory Valuations?

Statutory valuations refer to the official mass appraisal of land values across the state. They are done by Valuer Generals’ offices through a combination of:

  • Limited physical inspections of sample properties.
  • Automated valuation models (AVMs).
  • Market sales analysis.

They determine the unimproved capital value – i.e. value of land excluding buildings or enhancements. This standardised valuation is used for levying land tax and council rates.

Valuation Cycles by State

New South Wales

NSW has moved to annual revaluations for land tax purposes from 2020. New land values apply from the next 1st July every year.

Council valuations also occur annually in NSW.

Victoria

Victoria undertakes statutory valuations every 2 years, with new values becoming effective 1st January in even-numbered years.

Most councils in Victoria also revalue properties every 2 years.

Queensland

QLD has annual valuations by the Valuer-General, with new land values taking effect 1st October each year.

Brisbane and many QLD councils adopt annual rates revaluations as well.

South Australia

SA has 3-yearly valuation cycles conducted by the Valuer-General. New values apply from July in those years.

Adelaide council does revaluations every 3 years aligned to this schedule.

Western Australia

WA has a 3-year rolling revaluation program coordinated by the Valuer-General for land tax purposes.

Perth and surrounding councils also revalue every 3 years.

Tasmania

TAS conducts state-wide revaluations every 6 years by the Valuer-General. The next cycle is due in 2023.

Some Tasmanian councils like Hobart have started doing revaluations every 2 years.

Impact on Property Taxes

More frequent statutory valuations allow land values and consequently land tax to be updated regularly in line with current market conditions.

But it also means land taxes can fluctuate more often, especially in hot markets. Homeowners should review their valuation notices carefully against sales evidence when new cycles commence.

Council rates are also affected by updated municipal valuations. However, rates are based on a property’s total improved value, not just land value.

Knowing the valuation cycles can help homeowners better anticipate potential changes to their property tax liabilities.