Review of Valuation and Local Government Rating

The review of Tasmania's valuation and local government rating processes was completed in April 2013.

The review was established to identify a valuation and local government rating model that will:

• be more efficient and provide greater flexibility to councils;
• be simpler and more easily understood by both practitioners and ratepayers;
• be cost-effective;
• provide equitable outcomes for different classes of ratepayers and be less susceptible to market fluctuations; and
• be sustainable in the long term, including in relation to skills availability, resources and potential market fluctuations.

A Steering Committee was appointed to undertake the review and provide recommendations on future reforms to the Minister for Local Government. The Steering Committee includes representatives of the Departments of Premier and Cabinet, Treasury and Finance, and Primary Industries, Parks, Water and Environment - including the Office of the Valuer-General, the Local Government Association of Tasmania (LGAT) and Local Government Managers Australia.

The Local Government Division of the Department of Premier and Cabinet provided executive support for the Steering Committee.

Valuation and Local Government Rating Review: Final  Report

In April 2013, the Valuation and Local Government Rating Review Steering Committee submitted its Final Report to Brian Green MP, Minister for Local Government, for consideration.  The Report presents the Committee's findings and recommendations in regard to future reform of Tasmania's valuation and rating systems. 

The Final Report recommendations include that the State Government:

• discontinues valuations on Assessed Annual Value (AAV) and assists councils to transition to Capital Value (CV) by 1 July 2016;
• transitions to a valuation cycle of two years for Land Value (LV) and four years for CV;
• maintains LV and AAV adjustment factors for each municipality until fresh valuations are completed;
• seeks advice from local government on the preferred strategy for managing cost implications for councils associated with the transition; and
• works with LGAT to improve the capacity of councils to manage differential rates resolutions.

The Minister released the Report at the 14 May 2013 meeting of the Premier's Local Government Council and accepted the recommendations of the report with a delay in timeframes. 

View the Final Report  (PDF, 2.3MB).

The Government has decided that implementation of the major reform requiring all councils to move to CV and changes to the valuation cycle should be deferred.  The reason for the deferral of these elements is that some of the factors driving the need for reform have eased and that there is not presently a consensus in local government for reform at this time.

In order to progress the findings of the Report, the Department of Premier and Cabinet will undertake a capability building program to build local government sector support and preparedness for any future change in the valuation system.  The Department will also address the issues raised by stakeholders in the course of the review through legislative amendment and/or rating guidance.

Queries about the review or the Final Report can be directed to Local Government Division either by email to lgd@dpac.tas.gov.au or by telephone to 6232 7022.