Property owners across the Tweed have started to receive their latest land valuation notices, issued by the NSW Valuer General.
The notice provides an independent assessment of the unimproved value of land only. This process is undertaken every 3 years to reflect an accurate market price, with the most recent notice providing the land valuation as of 1 July 2022.
Overall, land valuations across the Tweed climbed significantly since the previous local government valuation year of 2019, increasing by an average of approximately 72%. The highest rises were seen on the Tweed Coast where some properties more than doubled in value.
The average increase in land valuation (from 2019 to 2022) for each general rating category is:
- Residential rate – increase of 75%
- Business rate – increase of 57%
- Farmland rate – increase of 83%
Key points to note regarding land valuation changes are:
- Council does not receive any extra income when land valuations change. The total income that Council can source from land rates is capped at the approved rate pegged amount of 4%, which is well below the rate of inflation. Council is considering a Special Rate Variation (SRV) of 2.35%, which should this be approved, means a 6.35% rise in the general rate. Residents can have their say on the SRV at yoursaytweed.com.au/srv.
- An increase in your land valuation does not necessarily mean your general rate will increase. The difference is how the rates revenue is shared across ratepayers, based on the change in their land valuation. Some people may pay more or less on their general rate depending on the change in value of their land relative to changes in land valuations across the Tweed.
The impact of the 2022 land valuations on your rates depends on how an individual land valuation changes when compared with the average valuation across a rating category (e.g. residential, farmland, business).
Generally, properties whose land valuation increase is lower than the average increase for that rates category (residential, business or farmland) will see a reduction in the general rate. However, properties whose valuation increase is higher than the average for the rating category may see a rise in the general rate.
For example:
- A property at Pacific Drive, Banora Point. Their land valuation increased by 50% yet their general rate will decrease, even with a 6.35% SRV rate.
- Another example is a property at River Street, Murwillumbah South. In this case, the land value increased by 59% but their general rate will remain unchanged at the minimum general rate level of $1143.80, only increasing by $23 for the year should the SRV be approved.
- The biggest change will be felt on the Tweed Coast where property prices have increased significantly. For example, a property on Cylinders Drive, Kingscliff, where the land valuation increased by 133%. This property will see its general rate rise by 39% to $4,716 (rate peg) or $4,834 (SRV) per annum.
