How rates are calculated
All properties within the Hobart municipal area are valued by the Valuer-General to determine 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 AAV or the estimated yearly rental value of your property (net of GST, tax and rates).
Please note: all properties within the Hobart municipal area are valued by the Valuer-General in accordance with the Valuation of Land Act 2001.
We calculate the majority of the total rates charged on your property by multiplying the AAV by a rate of 'cents in the dollar'.
The cents in the dollar is reached by dividing the rating income that we require to deliver our services (determined by the City of Hobart budget) by the total of all AAVs in Hobart.
For the 2023-24 financial year, the City of Hobart has introduced a differential rating model to continue to address the disparity in rate collections from the 2021 municipal revaluation.
This model includes a differential rate for properties used as short stay visitor accommodation and vacant residential land. The introduction of this new differential rating is to retain housing stock, ensure contribution to Council services from owners of residential land used for commercial short stay accommodations and encourage development of vacant land.
Change and alterations
If you are contemplating any change or alteration to your house, including extensions, demolitions or even building a new house, an important step in the process is to find out whether your proposal requires planning, building or plumbing approval prior to the commencement of work. More information on this can be found on the development page.
Once we have been notified of your changes and approval given, the Office of the Valuer-General will be notified to revalue the property and an updated rates notice will be issued.