Tax victory short-lived for Silverleaves' residents
Property owners who had their land valuations reduced earlier this year, say the latest council rates have seen them revert back to the old value.
Silverleaves ratepayers are flabbergasted after the Valuer-General flip-flopped on their property valuations, with a victory earlier this year on state land tax now lost with Bass Coast Shire rates.
As reported in March, Silverleaves property owners who objected to land tax bills won a victory, with reduced fees thanks to a reduction in land valuations because of coastal inundation.
In one case, a foreshore property had its land re-valued from $775,000 to $175,000 and another saw a site value reduction from $340,000 to $85,000.
But now those same property owners say their recently received 2026-27 council rates have reverted back to the old land value.
The property owner whose land five months ago was worth $85,000 - which was reflected in the last quarterly payment of the owner's 2025-26 rates bill - say their land has now shot back up to $330,000 thanks to a re-evaluation by the Valuer-General.
Land tax is calculated annually by the Valuer-General on the value of land only, not capital improved value (CIV) of homes, and is largely payable by those with holiday homes to the State Revenue Office (SRO).
Council rate bills are more complex and include CIV and take into consideration the real estate market.
Property owners in Silverleaves - particularly on the foreshore area impacted by rapid erosion - objected to the SRO, claiming land values have diminished in the face of coastal erosion and the threat of inundation.
They also say it reflects government authorities' refusal to grant permits to build homes on vacant land.
Shocked
Foreshore resident Natalie Gray previously received a land tax reduction for her land value from $775,000 to $175,000.
But now her council rates have a site value bouncing back up to $775,000 again, a "quadrupling", for which she has now lodged an objection.
"I can't understand how the basis of assessment for site valuations has changed," Natalie said.
"We just want to live a peaceful life. We should not have to be put in a position where we have to object every year."
Natalie said the land tax reduction was based on a High Court ruling in late 2025 that land tax should be assessed based on the site value of vacant land and she said to her knowledge "there has been no change in the law" that would see an increase in land valuations.
Silverleaves homeowner Ken Hailey said he objected to last year's land tax site valuation which had seen it revalued from $340,000 to $85,000.
Ken said the final quarterly instalment payment of his 2025-26 council rates bill reflected the new site value of $85,000.
So it was a shock to receive his 2026-27 rates, where the site value had bounced back up to $330,000.
"Many Silverleaves residents are dismayed to see the site values of their properties had quadrupled six months after the Valuer-General reduced them significantly," Ken said.
"I am baffled how this change can happen when property prices in Silverleaves are already depressed because of the inundation overlay and ongoing coastal erosion issues."
He said residents were forced to object last year through council or the SRO "to be given the reassessment and resulting reduction".
This month Ken had contacted Valtec, who provide the valuations for the Valuer-General but "I was given no clear explanation".
"The advice was to object again this year.
"The more cynical amongst us may feel this to be a massive tax grab by the current government.
"Unless the law has changed I can see no valid reason for the massive hike."
Silverleaves residents already feel battered by ongoing issues with planning permits and coastal erosion.
Ken said he would not object to his council rates and was reassured Bass Coast was "looking into the matter on the residents' behalf".
"I am concerned these changes can happen without any government oversight and explanation."
Response
The Advertiser wrote to both the Department of Planning and Treasury for a response from the Valuer-General and was instead referred to the State Revenue Office (SRO).
An SRO spokesperson said they were unable to comment on individual taxpayer matters.
They explained the site value of land was used to calculate land tax and determined by the Valuer-General.
They added the SRO was not involved in the property valuation process and forwards valuation objections to the Valuer-General for review.
"The SRO always endeavours to provide accurate tax assessments, and all assessments are based on information provided to us. We encourage anyone with questions about their land tax assessment to contact us directly."
The Advertiser asked Bass Coast Shire Council for an explanation and was referred to these websites:
basscoast.vic.gov.au/services/rates-payments#how-are-my-rates-calculated
or
localgovernment.vic.gov.au/our-programs/a-fair-go-rates-system-for-victorians/calculating-rates
