Property valuation and your rates
Property valuations
Each year your property is valued by the Valuer-General Victoria. This $ value is used to work out your rates and land tax.
Property values are worked out by analysing property sales and rents, and looking at specific features of a property. Data about a property is collected from inspections, building and planning permits and other public sources.
We use the valuation done in January 2024 to work out your rates for the year 1 July 2024 to 30 June 2025.
If your property has changed, an extra or supplementary valuation may be done. Examples of this include the construction, demolition or extension of a dwelling, or the subdivision of land.
Valuation amounts for your property
You will see 3 valuations on your rates and valuation notice:
- Capital Improved Value (CIV) – the market value of the land, plus buildings and other improvements. The CIV is the approximate amount you could expect to sell your property for on the open market. We use this value to calculate your rates.
- Site Value (SV) – the market value of the land (only). This is used by the State Revenue Office to calculate land tax.
- Net Annual Value (NAV) – prescribed or current value of the property’s net annual rent. We previously used NAV to calculate rates.
How we calculate rates
Step 1: We work out how much money we need to raise from rates to pay for the services we will deliver. The total amount cannot increase more than the Victorian Government rate cap each year.
Step 2: We add up all the valuations of every property in Port Phillip.
Step 3: We calculate the rate in the dollar for each type of property. Revenue ÷ value of properties = rate in the dollar
In 2024/25 we need to raise $135.4 million in general rates income. The total value of all properties is $75.9 billion. We have 6 categories of property. Each has its own rate in the dollar. The differential rates for each property type for 2024/25 are in the table below.
| Differential rate type | Rate in the dollar for 2024/25 | Change from last year |
| Resident | $0.001723 | 1.71% |
| Industrial | $0.002036 | 1.83% |
| Commercial | $0.002058 | 1.80% |
| Vacant | $0.005169 | New in 2024/25 |
| Derelict | $0.006892 | New in 2024/25 |
| Unactivated retail | $0.006892 | New in 2024/25 |
Separate waste charges
Your rates bill includes a separate waste charge to help manage the costs of delivering essential and highly valued waste services. You may also have a charge for the Food and Garden Organic Waste (FOGO) service.
2024/25 charges
- All rateable properties have the waste charge of $203.60. (Up by $5.40 or 2.7 per cent)
- Properties that have a kerbside FOGO collection will also pay $68 for this service. (Up by $2 or 3 per cent)
Read more about the separate waste charge.
Rebates
Properties with private waste collection services are eligible for a $69.50 rebate on the waste charge.
We offer a rebate of $82 for properties that switch to an 80-litre waste bin. There is a surcharge of $255 if you want a 240-litre waste bin.
How do rates compare in 2024/25
The average rates increase this year is 2.75 per cent, within the rates cap set by the Victorian Government. This is well below the 3.4 per cent forecast inflation rate. The increase is calculated on last year's budget. The rate rise in Port Phillip was 2.8 per cent last year, lower than the 3.5 per cent rate cap set by the Victorian Government.
The 2.75 per cent rise does not apply to individual rate notices. This is the increase in total rates revenue we are raising in 2024/25 compared with 2023/24. Each property owner's rate notice is determined by the value of their property and all others in the same category.
This table shows the percentage of properties in each property type, that will see rates increase by less than 2.75 per cent.
| Property type | Percentage of properties with an increase lower than 2.75 per cent |
| Houses | 83% |
| Flats or units | 54% |
| Industrial | 64% |
| Retail or commercial | 77% |
Rate changes by neighbourhood 2024/25
This table has data for the median residential property in our nine neighbourhoods. It shows how the value and its rates and charges have changed over the last 2 years.
| Neighbourhood | 2023/24 Valuation | Rates and charges | 2024/25 valuation | Rates and charges | Change |
|---|---|---|---|---|---|
| Albert Park | $1.85m | $3,398 | $1.8m (2.7% decrease) | $3,368 | Decrease of $30 or 0.9% |
| Balaclava | $0.6m | $1,215 | $0.6m (no change) | $1,236 | Increase of $21 or 1.7% |
| Elwood | $0.68m | $1,342 | $0.68m (no change) | $1,365 | Increase of $23 or 1.7% |
| Melbourne | $0.55m | $1,130 | $0.55m (no change) | $1,150 | Increase of $20 or 1.8% |
| Middle Park | $2.0m | $3,652 | $1.95m (2.5% decrease) | $3,626 | Decrease of $26 or 0.7% |
| Port Melbourne | $1.1m | $2,043 | $1.1m (no change) | $2,078 | Increase of $35 or 1.7% |
| Ripponlea | $0.55m | $1,130 | $0.55m (no change) | $1,150 | Increase of $20 or 1.8% |
| South Melbourne | $0.63m | $1,257 | $0.63m (no change) | $1,279 | Increase of $22 or 1.8% |
| St Kilda | $0.5m | $1,045 | $0.50m (no change) | $1,064 | Increase of $19 or 1.8% |
| St Kilda East | $0.55m | $1,130 | $0.55m (no change) | $1,150 | Increase of $20 or 1.7% |
Objecting to a valuation
If you disagree with the value of your property, you may object within 2 months of the date of issue of the rates notice. Remember, your 2024/25 general rates are based on the value of your property on 1 January 2024.
You can lodge your objections on the Valuer-General Victoria Objection Portal.
Municipal valuations are governed by the Valuation of Land Act 1960.
Review of differential rating categories
You can request a review of the classification of your property. Send your request for a review to our Valuation Team at valuations@portphillip.vic.gov.au.
If you disagree with the outcome of the review, you can appeal to the Victorian Civil and Administrative Tribunal (VCAT). Your appeal must be lodged with VCAT within 60 days of the date of issue of the annual rates, charges and valuation notice.
Contact us
Our Rates Team is here to help with questions on valuations.
Send us a message on My Port Phillip
Phone: 03 9209 6777