One lot, one valuation
The second home stays part of the lot. NSWA lot with a secondary dwelling cannot be subdivided. VictoriaA small second home cannot be subdivided or sold off separately from the main home. QueenslandA secondary dwelling cannot be developed by itself; it always goes with a main dwelling. So the question for rates is how the state values that one lot, and whether the value counts the buildings on it.
How each state values the lot for rates
NSWLand value, without buildings
The Valuer General gives land values to every council at least once every three years, and councils use them to work out rates. Land value is the market value of the land only, and does not include buildings or other improvements.
Rates are generally in two parts: a base charge that is the same for every landowner in the council area, and an “ad valorem” charge, the land value multiplied by the council’s rate in the dollar. Each council chooses its own mix of rates, charges and fees, and the Independent Pricing and Regulatory Tribunal sets limits on increases.
VictoriaCapital improved value, or net annual value
Every rateable property is revalued each year as at 1 January, and councils multiply their rate in the dollar by either the capital improved value or the net annual value. Valuer-General Victoria describes capital improved value as the total market value of the property, including the land and all improvements, and net annual value for a home as 5% of that figure. Among the records its valuers draw on are planning and building permit records.
QueenslandLand value, without improvements
For land not zoned as rural, the state uses a site value method, and its valuers do not include a house, fences or other structures in the assessment. The department adds that land value is one of many factors councils weigh when they set rates, and that rates can change even when the land value has not.
If the second home is rented in NSW, the rates stay with the owner: the landlord’s responsibility to pay rates, taxes and charges is a standard term of tenancy agreements, and one that cannot be removed even from a fixed term of 20 years or more.
What the council settles
Victoria’s planning department answers the practical questions most directly in its applicant’s guide for small second dwellings. Its answers are Victoria’s. The NSW and Queensland pages read for this guide do not take up these questions, so there the council and the local water utility are the ones to ask.
Bins
VictoriaBin and recycling enclosures should sit on the property where residents of both homes can reach them easily. Some councils let residents add bins or change bin sizes, at a cost.
A street number
VictoriaThe council generally assigns street numbers, and the owner must display them clearly in a prominent position, so the home can be found quickly in an emergency, as well as by deliveries, service authorities and visitors.
Meters and water fees
VictoriaA small second dwelling may be able to use the existing home’s utility services; the guide sends questions about meters to the utility, and about any extra fees to the local water authority. If the second home might ever be rented, a shared meter matters: see the renting stop.
Levies
VictoriaA small second dwelling is normally exempt from a development contributions levy or a community infrastructure levy, but contributions other authorities ask for, such as water authorities, still apply.
The other stops
Five more places on the same lot: