In Victoria, understanding the distinction between Site Value and Capital Improved Value (CIV) is essential for property owners, especially when reviewing council rates notices, planning developments, or managing land tax obligations. These valuation terms reflect different aspects of your property’s worth and are applied in various government calculations.
This article explains the meaning of Site Value and Capital Improved Value in VIC, how they are assessed, and when each is used in legal, financial, and planning matters.
What Is Site Value (SV)?
Site Value is the unimproved value of land—that is, the value of the land excluding any buildings, structures, landscaping, or other improvements.
Site Value reflects:
- Land size and location
- Zoning and permitted use
- Topography, shape, and access
- Sale prices of similar vacant land
- Local planning overlays
Site Value is used primarily for:
- Land tax assessments (by the State Revenue Office)
- Fire Services Property Levy (FSPL)
- Land-only valuations in development feasibility studies
It does not account for the dwelling or other man-made additions to the property.
What Is Capital Improved Value (CIV)?
Capital Improved Value is the total market value of the land and all improvements on it. This includes:
- The dwelling
- Garages and sheds
- Landscaping
- Fencing
- Renovations or additions
- Permanent structures of any kind
CIV represents what a property would reasonably sell for in its current state at the time of valuation.
CIV is commonly used for:
- Calculating council rates in most Victorian councils
- Property sales comparisons
- Valuations for residential lending and taxation purposes
What’s the Difference Between CIV and SV?
| Feature | Site Value (SV) | Capital Improved Value (CIV) |
| Includes building value? | ❌ No | ✅ Yes |
| Used for rates? | ✅ Sometimes (but less common in VIC) | ✅ Commonly used for council rates |
| Used for land tax? | ✅ Yes | ❌ No |
| Reflects market value? | ❌ Partially | ✅ Yes (full market value with improvements) |
Example:
If your land is worth $600,000 and your home is valued at $500,000, then:
- Site Value = $600,000
- Capital Improved Value = $1.1 million
Where Can You Find These Values?
You’ll find both values on your:
- Annual council rates notice
- Victorian Government’s land data websites (e.g. Landata, or via your local council)
- Property information certificates when selling or transferring property
The valuation date is generally 1 January and is used for the financial year beginning 1 July.
Who Determines These Values?
Valuations in Victoria are conducted by the Valuer-General Victoria, or local council-appointed valuers under supervision. They conduct mass valuations every year based on:
- Recent comparable sales
- Zoning and planning conditions
- Property inspections or desktop assessments
- Market analysis by property type and location
Why Does the Difference Matter?
- A higher CIV can increase your council rates
- A higher SV can increase your land tax liability
- Understanding both helps you forecast ownership costs, especially if you own multiple properties or vacant land
How to Dispute a Valuation in Victoria
If you believe either the Site Value or Capital Improved Value on your notice is too high:
- Contact your local council within two months of receiving your rates notice
- Request a valuation objection form
- Submit evidence (sales data, independent valuation, planning issues)
- If unresolved, escalate to the Victorian Civil and Administrative Tribunal (VCAT)
A successful objection can reduce your rates or land tax liability.
Tips for Property Owners
- Review both CIV and SV on your annual notice
- Monitor how renovations or zoning changes may affect CIV
- Understand your land tax threshold (if applicable)
- Seek professional valuation advice when developing or subdividing
- Use CIV as a general guide for current market value—but consider full appraisals for sale or loan purposes
Conclusion
Site Value and Capital Improved Value are two sides of the same coin—each reflecting a different aspect of your property’s worth. In Victoria, they’re essential for calculating rates, taxes, and planning contributions, and understanding them helps you make informed decisions about property ownership and development.
By checking your valuations and knowing when to seek a review, you can manage costs more effectively and stay compliant with Victorian property regulations.
