How rates are calculated
All properties within the Hobart local government area are valued by the Valuer-General. This determines the land value, capital value and assessed annual value.
- Assessed annual value (AAV) is the estimated yearly rental value of the property.
- Land value is the value of the property excluding all visible improvements such as buildings, structure and fixtures.
- Capital value is the total value of the property, including the land value.
The value that is directly relevant to your rates is the Capital Value of your property. Your property's Capital Value is used to calculate your rates.
Please note: all properties within the Hobart local government area are valued by the Valuer-General in accordance with the Valuation of Land Act 2001.
Rates calculations
The City of Hobart uses property values as the basis for calculating how much each property owner pays in rates. Property values are not calculated by the City. They are provided to the City by the Office of the Valuer-General.
We calculate the majority of the total rates charged on your property using an equation. The equation multiplies the Capital Value of your property by a rate of 'cents in the dollar'.
Generally, the rate in the dollar is calculated using another equation. We divide the rating income that we need to deliver our budget by the total of all Capital Values in Hobart, by land use. Our budget determines how we deliver our infrastructure, programs and services.
We vary the rates by applying a higher rate in the dollar to specific land uses. This maintains an equitable distribution of the rate burden for Capital Value rating.
This model includes a differential rate for certain properties. This includes properties used as short stay visitor accommodation and vacant residential land. The objective of these differentials is to:
- retain housing stock
- ensure contribution from owners of residential land used for commercial short stay accommodations
- encourage development of vacant land.
The rate in the dollar for each land use is then multiplied by the value of a property, using the capital value. This establishes the amount to be paid by each property owner plus service rates and charges.
The formula for calculating General Rates, excluding service rates and charges, arrears or additional supplementary rates is therefore:
Valuation (Capital Value) x Rate in the Dollar (Differential Rate Type)
The rate in the dollar for each rating differential category is shown on the rates and charges page.
Changes and alterations
If you are considering changes to your house, you might need planning, building or plumbing approval. This includes work such as extensions, demolitions or even building a new house.
It's important to find out if approvals are required before starting work. More information on this can be found on the preparing a planning application page.
Once we have been notified of your changes and approval given, the Office of the Valuer-General will be notified. They will revalue the property and an updated rates notice will be issued.