Process Guide – Valuation of LandAttachment 1: Sample Letter

This is a sample letter to land owners from local government explaining the process for the valuation of land.

Dear (land owner)

Review of valuation method used for rating properties within the (local government).

The city/shireis undertaking a review of the method of valuation which is applied to properties within thedistrict. During this review it was noted that several properties that are currently rated as Unimproved Value (UV) are no longer being used for rural purposes.

The city/shire has completed an initial assessment of your property and identified it as potentially requiring a change to Gross Rental Value (GRV).

Section 6.28 of the Local Government Act 1995 provides that the Minister for Local Government is responsible for determining the method of valuation to be used by local governments for rating purposes.

In determining the method of valuation the Minister is to have regard to the general principle that the basis for a rate on any land is to be:

  • Unimproved Value (UV) where the land is used predominately for rural purposes; or
  • Gross Rental Value (GRV) where the land is used predominately for non-rural purposes

The determining factor is the use of the land.

In determining predominant land use all relevant factors will be taken into account, including the activity conducted on the land, any development on the property, income generated from or on the property and Local Planning Scheme restrictions. The extent of services provided is not a relevant consideration. The Department of Local Government and Communities has adopted a set of Operational Guidelines which provide a framework for local governments. Theseareavailable online at

The city/shire would appreciate it if you could complete the attached form and return it within 21 days. If you do not return the declaration, it will be assumed that your land is used predominately for non-rural purposes and an application will be made to the Minister to request a change for your property to GRV.

If you declare your property is used predominately for rural purposes, a further assessment of your claim will be undertaken prior to making a final determination.

For further information please refer to the enclosed Frequently Asked Questions.

Please contact (name) on (number) if you have any further questions.

Kind regards

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