Ratepayer shock: Fees to soar as houses revalued across Adelaide

Every home in two wealthy council areas in metropolitan Adelaide has been revalued, stinging thousands of families with higher rates and charges — and the rest of the state is set to follow.

• Hundreds of residents fought property valuation increases last year
• Property leaders say land tax rises will cripple the state

Thousands of South Australian ratepayers face significant rises in property valuations — some of more than 40 per cent — under a State Government reassessment that will see large increases in annual rates and charges.

The Advertiser can reveal the detailed review of residential and commercial property valuations is the first major blitz undertaken by the Valuer-General’s department in 20 years.

Among other things, capital values are used to calculate council rates, SA Water sewerage costs, the Emergency Services Levy and the Natural Resources Management Levy.

Councils involved in the department’s initial pilot program include Unley, Walkerville and Adelaide Plains.

Some say ratepayers will be “shocked” by the amount of the rate rises.

In a statement to The Advertiser, Valuer-General Katherine Bartolo confirmed that of 19,000 properties scoped across Walkerville and Unley, almost 4 per cent of residential homes and units (704 properties) will see capital value increases of between 20 and 30 per cent.

And almost 9 per cent of residential homes and units (1659 properties) will experience a 10 per cent or greater increase.

Only 5 per cent of homes and units (902 properties) experienced a fall in value.

Aerial view of Unley, where house values will go up dramatically.

The Valuer-General said the majority of high increases and decreases in capital value were due to “rezoning, redevelopment or improvements”.

She said the statewide review had been undertaken to “improve the accuracy of valuations” and would be completed over three cycles.

The last cycle would be in effect for the 2021/2022 financial year.

Unley Council will inform more than 400 of its 18,600 ratepayers that they have had an increase of 10 per cent or more on the capital value of their property.

Unley acting CEO Nicola Tinning said her council was intent on ratepayers being fully informed.

“Some will have a decrease (in rates) … some will have slight increases and others are raising significantly up to 40 per cent,” she said.

“It will most definitely freak some people out. They are going to open their rates notice and say what’s going on.

“We’ll be explaining what they can do to object to their new valuation.”

Ms Tinning said the largest evaluation increases were for commercial properties along the major corridors of Anzac Highway and Unley, King William, Fullarton, Goodwood and Greenhill roads.

Ms Tinning said Unley was “especially concerned” about rate increases for traders and landlords on the troubled King William Rd at Hyde Park, already under pressure during the council’s $15.5 million road upgrade.

“Property owners who have already set their rents for next year and traders who have got business plans will have to rethink,” she said.

“It’s poor timing and out of our control. We were especially concerned about King William Rd with the construction going on but from their (Valuer-General’s Department) perspective that’s not an issue for them.”

Unley will send out letters next week with advice to ratepayers on how to complain directly to the Valuer-General about their valuation increases and to detail financial hardship arrangements for those who cannot pay.

Unley acting CEO Nicola Tinning.

There will be no windfall for Unley, where an overall rate rise of 2.25 per cent for 2019/20 has been approved.

It will collect the same amount in rates — around $60 million — as had been budgeted.

But the State Government will see increased income from other levies.

The Natural Resources Management Levy — listed as part of the council rate notice — will rise 4 per cent on last year overall.

Properties the Valuer-General is yet to target include aged care facilities, pubs and entertainment venues, and shopping precincts.

Ms Tinning said she had provided feedback to the Valuer-General that Unley had “received the data quite late”.

“What’s been disappointing is that we didn’t get to take to ratepayers during the (rate rise) consultation process,” she added.

“We want to be fair but we don’t want to shock anyone. But some are going to be shocked.”

Walkerville CEO Kiki Magro said there were 268 properties — 234 of them residential — within her council that face a capital value increase of more than 20 per cent.

Of the residential properties, 119 are in the Walkerville suburb, 48 in Medindie, 38 in Vale Park and 29 in Gilberton.

Ms Magro said her council was first notified a year ago it had been selected to be part of the pilot program.

“We were pleased to have been included, knowing that the outcome of the pilot would see every rateable property in the township receiving a site valuation, as opposed to a desktop valuation,” she said.

“Council has received briefings from the VG’s office at different stages of the program, which has been fully delivered by the VG.

“Given that rates are based on property values, it goes without saying that some ratepayers will be impacted. However, this is not necessarily unexpected.”

Ms Magro said properties that will see a decrease in their capital value could be an “equal concern” to residents as those seeing an increase.

There are 4014 rateable properties in Walkerville.

James Miller from Adelaide Plains Council said Ms Bartolo would address his council tonight to address concerns of elected members about the “sudden increases”.

“This review means substantial increases particularly for our primary producers and has come right at the end of our budget process,” the CEO said.

“This has come right on top of the waste levy increase announcement of last week.”

Mr Miller said his council with 5000 rateable properties was considering offering rate rebates to all ratepayers affected by valuation increases above 15 per cent.

State Treasurer Rob Lucas said the increase in capital values made it “essential” the bill to cap councils rates was passed by parliament.

He said the Valuer-General was independent and there was no windfall for government in increased levies — and the State Government had made it easier and cheaper for homeowners to challenge valuations by moving this process to the SA Civil and Administrative Tribunal.

The Advertiser understands the review was first mooted by the former valuer-general Delfina Lanzill in February 2017.

Former valuer-general and independent member of the upper house John Darley said the process had been “flawed from the get go”.

“What has happened in the past few years is the Valuer-General has failed to keep up with the market,” he said.

“They admitted they hadn’t kept up with the industrial and commercial (values) but we’re now finding they didn’t keep up to scratch with the residential and rural either.”