2Definitions

2 Definitions (1) In this Act unless inconsistent with the context or subject-matter— ***area*** means the territory within which a rating authority levies rates or taxes; S. 2(1) def. of *AVPCC* inserted by No. 58/2012 s. 111(1), amended by No. 50/2024 s. 56(a). ***AVPCC*** means an Australian Valuation Property Classification Code based on the Valuation Best Practice Specifications Guidelines; S. 2(1) def. of *business day* inserted by No. 67/2017 s. 34(a). ***business day*** means a day other than— (a) a Saturday or a Sunday; or (b) a day appointed under the **Public Holidays Act 1993** as a public holiday or public half-holiday; S. 2(1) def. of *capital improved value* inserted by No. 55/1989 s. 5(1)(b). ***capital improved value*** means the sum which land, if it were held for an estate in fee simple unencumbered by any lease, mortgage or other charge, might be expected to realize at the time of valuation if offered for sale on any reasonable terms and conditions which a genuine seller might in ordinary circumstances be expected to require; S. 2(1) def. of *collection agency* inserted by No. 58/2012 s. 111(1), amended by No. 16/2025 s. 22(5)(a)(ii). ***collection agency*** has the same meaning as it has in section 3 of the **Emergency Services and Volunteers Fund Act 2012**; S. 2(1) def. of *collection agency general valuation* inserted by No. 58/2012 s. 111(1), repealed by No. 67/2017 s. 34(b). S. 2(1) def. of *commercial and industrial property tax* inserted by No. 16/2024 s. 64(a). ***commercial and industrial property tax*** means tax payable under the **Commercial and Industrial Property Tax Reform Act 2024**; S. 2(1) def. of *Commis-sioner* inserted by No. 3/2004 s. 15(a). ***Commissioner*** means Commissioner of State Revenue under the **Taxation Administration Act 1997**; S. 2(1) def. of *council* substituted by No. 12/1989 s. 4(1)(Sch. 2 item 125.1). ***council*** has the same meaning as in the **Local Government Act 1989**; S. 2(1) def. of *council general valuation* inserted by No. 94/2009 s. 3(a), repealed by No. 67/2017 s. 34(c). S. 2(1) def. of *emergency services and volunteers funding levy* inserted by No. 16/2025 s. 22(5)(a)(i). ***emergency services and volunteers funding levy*** has the same meaning as ***levy*** has in section 3 of the **Emergency Services and Volunteers Fund Act 2012**; S. 2(1) def. of *estimated annual value* inserted by No. 55/1989 s. 5(1)(c) (as substituted by No. 78/1991 s. 15(a)), amended by No. 91/1994 s. 4(a). ***estimated annual value*** of any land, means the rent at which the land might reasonably be expected to be let from year to year (free of all usual tenants' rates and taxes) less— (a) the probable annual average cost of insurance and other expenses (if any) necessary to maintain the land in a state to command that rent (but not including the cost of rates and charges under the **Local Government Act 1989**); and (b) the land tax that would be payable if that land was the only land its owner owned; S. 2(1) def. of *farm land* inserted by No. 55/1989 s. 5(1)(c), substituted by No. 91/1994 s. 4(b). ***farm land*** means any rateable land— (a) that is not less than 2 hectares in area; and (b) that is used primarily for grazing (including agistment), dairying, pig‑farming, poultry-farming, fish‑farming, tree-farming, bee‑keeping, viticulture, horticulture, fruit-growing or the growing of crops of any kind or for any combination of those activities; and (c) that is used by a business— (i) that has a significant and substantial commercial purpose or character; and (ii) that seeks to make a profit on a continuous or repetitive basis from its activities on the land; and (iii) that is making a profit from its activities on the land, or that has a reasonable prospect of making a profit from its activities on the land if it continues to operate in the way that it is operating; S. 2(1) def. of *fire services property levy* inserted by No. 58/2012 s. 111(1), repealed by No. 16/2025 s. 22(5)(a)(iii). S. 2(1) def. of *fixture* inserted by No. 38/2023 s. 18(1). ***fixture***, on land, means any of the following, whether owned by the owner of the land or a tenant or any other occupier of the land— (a) anything that constitutes a fixture at law; (b) any other item fixed to the land; S. 2(1) def. of *general valuation* inserted by No. 6825 s. 2, amended by Nos 55/1989 s. 11(2)(a), 94/2009 s. 3(c), 58/2012 s. 111(2), substituted by Nos 66/2016 s. 26, 67/2017 s. 34(d), amended by No. 50/2024 s. 56(b). ***general valuation*** means a valuation that the valuer‑general is causing or has caused to be made— (a) under Part II of all rateable land in an area; or (b) under Part IIA of all non-rateable leviable land; S. 2(1) def. of *Information Privacy Principle* inserted by No. 42/2017 s. 69. ***Information Privacy Principle*** has the same meaning as in the **Privacy and Data Protection Act 2014**; S. 2(1) def. of *improve-ments* inserted by No. 55/1989 s. 5(1)(d) (as amended by No. 81/1989 s. 3 (Sch. item 56)), amended by No. 10/1996 s. 27(1). ***improvements***, for the purpose of ascertaining the site value of land, means all work actually done or material used on and for the benefit of the land, but in so far only as the effect of the work done or material used increases the value of the land and the benefit is unexhausted at the time of the valuation, but, except as provided in subsection (2AA), does not include— (a) work done or material used for the benefit of the land by the Crown or by any statutory public body; or (b) improvements comprising— (i) the removal or destruction of vegetation or the removal of timber, rocks, stone or earth; or (ii) the draining or filling of the land or any retaining walls or other works appurtenant to the draining or filling; or (iii) the arresting or elimination of erosion or the changing or improving of any waterway on or through the land— unless those improvements can be shown by the owner or occupier of the land to have been made by that person or at that person's expense within the fifteen years before the valuation; S. 2(1) def. of *leviable land* inserted by No. 58/2012 s. 111(1), amended by No. 16/2025 s. 22(5)(a)(ii). ***leviable land*** has the same meaning as it has in section 3 of the **Emergency Services and Volunteers Fund Act 2012**; S. 2(1) def. of *mortgage* inserted by No. 55/1989 s. 5(1)(d). ***mortgage*** includes every charge upon land which is registered under any Act relating to the registration of deeds or instruments affecting title to land, and includes a transfer or conveyance to a registered building society, subject to a deed of defeasance in favour of a borrower; S. 2(1) def. of *municipal district* inserted by No. 94/2009 s. 3(a). ***municipal district*** has the same meaning as in the **Local Government Act 1989**; S. 2(1) def. of *municipality* repealed by No. 12/1989 s. 4(1)(Sch. 2 item 125.2). S. 2(1) def. of *net annual value* inserted by No. 55/1989 s. 5(1)(e) (as amended by No. 78/1991 s. 15(b)). ***net annual value*** of any land, means— (a) except in the case of the lands described in paragraphs (b) and (c)— (i) the estimated annual value of the land; or (ii) five per centum of the capital improved value of the land— (whichever is the greater); or (b) in the case of any rateable land which is— (i) farm land; or (ii) a house, flat or unit (other than an apartment house, lodging house or boarding house) in the exclusive occupation of the owner and used for residential purposes; or (iii) a house or unit (other than an apartment house, lodging house or boarding house) in the exclusive occupation of a tenant and used for residential purposes; or (iv) a residential unit in respect of which a residence right in a retirement village (as defined in the **Retirement Villages Act** **1986**) exists— five per centum of the capital improved value of the land; or (c) in the case of parklands, reserves or other lands owned by the Crown or any statutory authority, occupied (other than under any lease) for pastoral purposes only—the estimated annual value of it; S. 2(1) def. of *non-rateable leviable land* inserted by No. 58/2012 s. 111(1), amended by No. 16/2025 s. 22(5)(a)(ii). ***non-rateable leviable land*** has the same meaning as it has in section 3 of the **Emergency Services and Volunteers Fund Act 2012**; S. 2(1) def. of *non-rateable non-leviable land* inserted by No. 67/2015 s. 8(1). ***non-rateable non-leviable land*** means land that is not rateable land and not leviable land; S. 2(1) def. of *notice of valuation* inserted by No. 94/2009 s. 3(a), amended by Nos 67/2017 s. 34(e), 52/2021 s. 95(1)(b), substituted by No. 50/2024 s. 56(c). ***notice of valuation*** means a notice served under section 15(3)(a), 15AA(1) or 15A; ***owner*** in relation to any land, means the person who is entitled to receive the rack-rent for the land or who, if the land were let at a rack-rent, would be entitled to receive the rent; S. 2(1) defs of *Part* and *prescribed* repealed by No. 50/2024 s. 56(g). S. 2(1) def. of *rateable land* inserted by No. 58/2012 s. 111(1). ***rateable land*** has the same meaning as it has in section 3(1) of the **Local Government Act 1989**; S. 2(1) def. of *rating authority* amended by Nos 81/1989 s. 3(Sch. item 55(a)(b)), 105/1995 s. 4, 40/1997 s. 138(Sch. 2 item 16.1), 66/2000 s. 56, 3/2004 s. 15(b). ***rating authority*** means— (a) any council in respect of its powers under any Act; (b) any Authority under the **Water Act** **1989**; (d) Melbourne Water Corporation; (e) the Minister responsible for administering section 139 of the **Water Industry Act 1994**, when exercising the power to levy rates under that section; (f) the Commissioner; (g) any other authority which levies rates or taxes and is prescribed for the purpose by proclamation of the Governor in Council published in the Government Gazette; S. 2(1) def. of *registered valuer* inserted by No. 8649 s. 2, repealed by No. 91/1994 s. 3(1)(a). S. 2(1) def. of *releasable information* inserted by No. 42/2017 s. 69. ***releasable information*** means— (a) the net annual value, the site value and the capital improved value for each property recorded in the valuation record, where that value has been determined in the relevant valuation specified in section 7C(1); (b) a property description for each property recorded in the valuation record; S. 2(1) def. of *relevant municipal district* inserted by No. 94/2009 s. 3(a), repealed by No. 67/2017 s. 34(f). S. 2(1) def. of *residential use land* inserted by No. 55/1989 s. 5(1)(f), amended by No. 50/2024 s. 56(d). ***residential use land*** means any rateable land— (a) which is a unit or self-contained dwelling-house used solely for residential purposes; and (b) which is situated in the municipal district of a council in which rates are levied in whole or in part on the site value of rateable land; and (c) the site value of which, or in the case of a unit, the site value of the larger property of which the unit forms a part, has been declared by a valuer appointed by the valuer-general to carry out the general or supplementary valuation to have been materially increased by reason that it is suitable for development or further development which is allowed by or pursuant to any relevant planning scheme; S. 2(1) def. of *return* inserted by No. 69/2011 s. 48, amended by No. 50/2024 s. 56(e). ***return***, in relation to a general valuation or supplementary valuation, means the act of the valuer who carried out the valuation giving to the valuer‑general a general valuation or a supplementary valuation which has been signed and dated; S. 2(1) def. of *site value* inserted by No. 55/1989 s. 5(1)(f). ***site value*** of land, means the sum which the land, if it were held for an estate in fee simple unencumbered by any lease, mortgage or other charge, might in ordinary circumstances be expected to realise at the time of the valuation if offered for sale on such reasonable terms and conditions as a genuine seller might be expected to require, and assuming that the improvements (if any) had not been made; S. 2(1) def. of *transmission easement* inserted by No. 3/2004 s. 15(a), amended by No. 88/2005 s. 117(Sch. 2 item 10.1). ***transmission easement*** has the same meaning as in the **Land Tax Act 2005**; S. 2(1) def. of *transmission easement holder* inserted by No. 3/2004 s. 15(a), amended by No. 88/2005 s. 117(Sch. 2 item 10.1). ***transmission easement holder*** has the same meaning as in the **Land Tax Act 2005**; S. 2(1) def. of *unit* inserted by No. 55/1989 s. 5(1)(f), amended by No. 22/2006 s. 8(1). ***unit*** means— (a) a unit on a registered plan of strata subdivision subject to Schedule 2 to the **Subdivision Act 1988**; and (b) a stratum estate within the meaning of the **Transfer of Land Act 1958**; and (c) a building or part of a building in the exclusive occupation of a person who is entitled to occupation by virtue of being a shareholder in a company which owns the building or a tenant of such a shareholder; and (d) a residential unit in respect of which a residence right in a retirement village under the **Retirement Villages Act 1986** is in force; S. 2(1) def. of *urban farm land* inserted by No. 55/1989 s. 5(1)(f), amended by Nos 94/2009 s. 3(b), 50/2024 s. 56(f). ***urban farm land*** means any farm land the site value or net annual value of which has been declared by the valuer appointed by the valuer-general to carry out the general or supplementary valuation to have been materially increased— (a) by reason of its proximity to land which has been or is being developed for residential, industrial, commercial or other urban purposes; or (b) by reason of its proximity to land which has been or is being subdivided into allotments used or intended to be used predominantly for recreational or residential purposes— and on which in the opinion of the valuer any farming operations would be ancillary to the predominant use of the land; S. 2(1) def. of *valuation authority*, in relation to a municipal district inserted by No. 94/2009 s. 3(a), substituted as *valuation authority*, in relation to rateable land in a municipal district by No. 67/2017 s. 34(g), repealed by No. 50/2024 s. 56(h). S. 2(1) def. of *valuation authority*, in relation to non-rateable leviable land inserted by No. 58/2012 s. 111(1), substituted by No. 67/2017 s. 34(h), repealed by No. 50/2024 s. 56(h). S. 2(1) def. of *Valuation Best Practice Specifications Guidelines* inserted by No. 58/2012 s. 111(1), amended by No. 34/2014 s. 28. ***Valuation Best Practice Specifications Guidelines*** means the guidelines prepared by the valuer-general under section 5AA; S. 2(1) def. of *valuation record* inserted by No. 94/2009 s. 3(a), amended by Nos 67/2017 s. 34(i), 52/2021 s. 95(1)(c). ***valuation record*** means the record of general and supplementary valuations established and maintained by the valuer-general under section 7C; S. 2(1) def. of *valuer-general general valuation* inserted by No. 94/2009 s. 3(a), substituted by No. 58/2012 s. 111(3), repealed by No. 67/2017 s. 34(j). S. 2(1) def. of *WGT event* inserted by No. 52/2021 s. 95(1)(a). ***WGT event*** has the same meaning as in the **Windfall Gains Tax Act 2021**; S. 2(1) def. of *windfall gains tax* inserted by No. 52/2021 s. 95(1)(a). ***windfall gains tax*** means tax payable under the **Windfall Gains Tax Act 2021**. S. 2(2) inserted by No. 55/1989 s. 5(1)(f). (2) In estimating the value of improvements on any land for the purpose of ascertaining the site value of the land, the value of the improvements is the sum by which the improvements upon the land are estimated to increase its value if offered for sale on such reasonable terms and conditions as a genuine seller might in ordinary circumstances be expected to require. S. 2(2AA) inserted by No. 10/1996 s. 27(2). (2AA) Works relating to a port, being buildings, breakwaters, berths, wharfs, aprons, canals or associated works are improvements within the meaning of this Act. S. 2(2A) inserted by No. 55/1989 s. 5(1)(f) (as amended by No. 78/1991 s. 15(c)). (2A) In determining the estimated annual value of any land, the rent at which the land might reasonably be expected to be let from year to year is to be taken to be the annual rent at which the land might reasonably be let at the usually prevailing terms and conditions. S. 2(2B) inserted by No. 38/2023 s. 18(2). (2B) In determining the capital improved value of any land, the sum which the land might be expected to realize at the time of valuation includes the value of the fixtures on the land. S. 2(3) inserted by No. 55/1989 s. 5(1)(f). (3) If it is necessary to determine the capital improved value or site value of any rateable land in respect of which any person is liable to be rated, but which forms part of a larger property, the capital improved value and site value of each part are as nearly as practicable the sum which bears the same proportion to the capital improved value and site value of the whole property as the estimated annual value of the portion bears to the estimated annual value of the whole property. S. 2(3A) inserted by No. 58/2012 s. 111(4), amended by No. 16/2025 s. 22(5)(b). (3A) If it is necessary to determine the capital improved value or site value of any non-rateable leviable land in respect of which the emergency services and volunteers funding levy is to be levied, but which forms part of a larger property, the capital improved value and site value of each part are as nearly as practicable the sum which bears the same proportion to the capital improved value and site value of the whole property as the estimated annual value of the portion bears to the estimated annual value of the whole property. S. 2(3B) inserted by No. 67/2015 s. 8(2), amended by Nos 52/2021 s. 95(2), 16/2024 s. 64(b). (3B) If it is necessary to determine the capital improved value or site value of any land that is non-rateable non-leviable land in respect of which land tax is to be imposed under the **Land Tax Act 2005**, commercial and industrial property tax is to be imposed under the **Commercial and Industrial Property Tax Reform Act 2024** or windfall gains tax is imposed under the **Windfall Gains Tax Act 2021**, but which forms part of a larger property, the capital improved value and site value of each part are as nearly as practicable the sum which bears the same proportion to the capital improved value and site value of the whole property as the estimated annual value of the portion bears to the estimated annual value of the whole property. S. 2(4) inserted by No. 55/1989 s. 5(1)(f), amended by Nos 58/2012 s. 111(5), 67/2015 s. 8(3). (4) If it is necessary to determine the site value of a unit described in paragraph (a) or (b) of the definition of ***unit*** in subsection (1), subsection (3), (3A) or (3B) applies (as appropriate), and a unit forms part of a larger property which is the land comprised in the strata subdivision. S. 2(5) inserted by No. 55/1989 s. 5(1)(f), amended by Nos 22/2006 s. 8(2), 58/2012 s. 111(6), 67/2015 s. 8(4). (5) If it is necessary to determine the capital improved value or site value of a lot or lots on a registered cluster plan subject to Schedule 2 to the **Subdivision Act 1988**, the rateable land, non‑rateable leviable land or non‑rateable non‑leviable land (as appropriate) includes any interest in common property and accessory lots, but does not form part of a larger property. S. 2(6) inserted by No. 55/1989 s. 5(1)(f), amended by Nos 58/2012 s. 111(7), 67/2015 s. 8(5), 16/2025 s. 22(5)(c). (6) Despite anything in this Act, the **Local Government Act 1989** or the **Emergency Services and Volunteers Fund Act 2012**, the capital improved value and the site value of any rateable land, non‑rateable leviable land or non‑rateable non‑leviable land which is, or part of which is, land which is the subject of a covenant under subsection (1) of section 3A of the **Victorian Conservation Trust Act 1972** is calculated on the basis that the owner of the land is bound by that covenant as to the development or use of the land or part of the land. S. 2(7) inserted by No. 55/1989 s. 5(1)(f), amended by No. 76/1998 s. 16. (7) If any area of land which is not less than 4 hectares in size is planted after the commencement of the **Forests Act 1907** with trees approved of by the Secretary within the meaning of the **Conservation, Forests and Lands Act 1987** as being suitable for mining or commercial purposes, and those trees are planted not more than 3 metres apart from each other, in computing the net annual value or capital improved value of that area of land, the increase in the value of the area of land by reason of the trees planted on it must not be taken into consideration. S. 2(8) inserted by No. 55/1989 s. 5(1)(f), amended by Nos 93/1995 s. 218(1) (Sch. 2 item 8.1, 58/2012 s. 111(8), 67/2015 s. 8(6), 7/2017 s. 307(1)–(3), repealed by No. 17/2019 s. 56. S. 2(9) inserted by No. 55/1989 s. 5(1)(f) (as amended by No. 86/1989 s. 26(2) (as amended by No. 48/1991 s. 66(3)(a))), amended by Nos 91/1994 s. 38(a), 10/2005 s. 3(Sch. 1 item 23), 58/2012 s. 111(9), repealed by No. 17/2019 s. 56. S. 2(10) inserted by No. 55/1989 s. 5(1)(f), amended by Nos 58/2012 s. 111(10), 16/2025 s. 22(5)(c). (10) Despite anything in this Act, the **Local Government Act 1989** or the **Emergency Services and Volunteers Fund Act 2012**— (a) the capital improved value and site value of any parklands, reserves or other lands owned by the Crown or any statutory authority which are occupied (otherwise than under any lease) for pastoral purposes only are twenty times the net annual value; and S. 2(10)(b) amended by No. 96/1994 s. 58(a)(b). (b) the capital improved value and site value of unused roads and water frontages licensed under the **Land Act 1958** or any corresponding previous enactment are twenty times the annual licence fee payable for them under that Act. S. 2A inserted by No. 105/1995 s. 3.