Valuation Averaging Mechanism

Published on 22 June 2023

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Local Government Victoria is seeking public feedback regarding the application of a Valuation Averaging Mechanism (VAM) to determine a property’s valuation for rating purposes. A VAM would entail taking a property’s previous valuations and averaging them to determine the property’s valuation.

This could result in rates year on year being averaged and mitigate significant increases. However, the VAM would still need to consider property revaluations, supplementary valuations and the application of differential rates, service charges and municipal charges.

Any model would have to apply to all properties in a municipality. The application of a Valuation Averaging Mechanism would not guarantee that all ratepayers would pay less on their rates and charges. Local Government Victoria invites the public to help determine whether such a mechanism is beneficial. 

Local Government Victoria will evaluate the public feedback received in response to the questions provided in the Engage Vic consultation link. The findings will be presented to the Minister for Local Government for consideration later this year.

To learn more, or participate in the survey, head here.