Annual Value is another value that councils can use as a basis for levying rates. Annual Value is a calculation involving rental values. It is the greater value of either the estimated gross annual rental less 20% (or 10% if there are no buildings on the land) or 5% of the property’s Capital Value.

The annual value is based on the higher of the estimated gross annual rental income less 20 per cent (or 10 per cent for vacant land) or 5 per cent of the property's capital value. To assess the annual value we calculate the following: The first calculation estimates how much the property could be rented for in one year, minus 20 per cent to c [..]