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PRODUCTS AND SERVICES (By Outcomes)Key Performance Indicators and Output Measures
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| Actual 2001/2002 | Actual 2002/2003 | Target 2003/2004 | Actual 2003/2004 | |
| Benchmark against international standards for accuracy using Means Ratio Test: | ||||
| Gross Rental Value | 92.38% | 93.04% | 92.5% | 93.87% |
| Unimproved Value | 92.69% | 91.76% | 92.5% | 90.58% |
| Coefficient of dispersion to check uniformity of values: | ||||
| Gross Rental Value | 5.01% | 5.69% | < 7.00% | 6.26% |
| Unimproved Value | 4.31% | 5.17% | < 15.00% | 7.80% |
Why is this a key indicator of our performance?
State and local governments rely on impartial, uniform and accurate property values as a base for levying rates and taxes. Therefore, measuring the uniformity and accuracy of valuations provides a useful indicator of our contribution to their effectiveness in meeting this outcome.
How was this indicator derived?
The uniformity and accuracy of Unimproved Values are checked against international ratio standards published by the International Association of Assessing Officers (IAAO) in their current 'Standard on Ratio Studies'. Coefficient Of Dispersion (COD) and Means Ratio Test (MRT) are the key standards. These are used extensively in both Australia and New Zealand. Gross Rental Values are compared against our own Standards developed in 1998 along similar lines to the (IAAO) land standards. Both were adopted as ideal indicators suited to Western Australia.
IAAO Standards state that "the overall level (MRT - accuracy) of appraisal for a jurisdiction.... for vacant land.... should be between 90 percent and 110 percent", and that the "Coefficient Of Dispersion (COD) for vacant land should be 20 percent or less". In larger urban jurisdictions dealing with uniform land releases and availability of sales, the COD should be < 15 %.
Whilst currently there is no international standard for Gross Rental Values, the same accuracy and uniformity measures applying to Unimproved Values have been adopted with tighter targets. The MRT for rentals set by the Valuer General is < 7%. Excellent results are produced when the percentage measure is much lower than the standard.
What does this indicator show?
The results fall well within the international standard set for Unimproved Values and that set by the Valuer General for Gross Rental Values. This shows that the valuations, when measured against the sales and rental evidence are set at a level reasonably close to prevailing market levels and most fall within a narrow value range. The results, while good by international standards, are not as good as previous years, reflecting the current volatile property market.
Effectiveness Indicator 2 of 2 (audited by the Office of the Auditor General):
Adjustments to rating and taxing values as a result of Objections and Appeals as a percentage of total values in force
| Target 2003/2004 | Actual 2003/2004 | |
| Adjustments to rating and taxing values as a result of Objections and Appeals as a percentage of total values in force | < 0.2% | 0.033% |
Why is this a key indicator of our performance?
The percentage of values amended as a consequence of owners exercising their right to challenge values is a reasonable measure of the integrity and fairness of the values contained in Valuation Rolls.
How was this indicator derived?
The figure is derived by dividing the total number of rating and taxing values in force by the number of values that have been amended as a result of an objection or appeal.
What does this indicator show?
At 30 June 2004, there were 1,699,290 values in force in Western Australia and during the 2003/2004 financial year, only 588 were amended as a result of formal objection and appeal grievances lodged with the Valuer General. This indicates that fewer than one in every 3,000 values is amended after formal review.
Apart from the effectiveness of the valuation process in WA, these types of results also show the stability of and acceptance of the valuation base by rate and taxpayers.
Efficiency Indicator incorporating output quantity and cost measures (audited by the Office of the Auditor General):
Average cost per valuation:
| Actual 2001/2002 | Actual 2002/2003 | Target 2002/2003 | Actual 2003/2004 | |
| Number of valuations completed | 1,371,492 | 1,145,529 | 1,392,019 | 1,522,666 |
| Average cost per valuation | $12.16 | $14.94 | $12.40 | $11.19 |
Why is this a key indicator of our performance?
The number of valuations made and the average cost per valuation provide a reliable measure of overall performance against forecast targets, as well as against previous years' outcomes. Some variation does occur from year to year due to the cyclical nature of the gross rental valuation program, with 2003/2004 being a year of higher mass appraisal activity in the metropolitan area, resulting in lower costs per value than the previous year.
How was this indicator derived?
Cost per value refers to the total cost per value of unimproved and gross rental values including general valuations, interim valuations, objections, appeals and queries made during the financial year, and other valuations including all plant and equipment, stamp duty, market, and asset valuations, and property related valuation consultancy services.
The total cost includes all direct costs and an appropriate share of indirect and overhead recurrent costs.
What does this indicator show?
The average cost per valuation of $11.19 is 9% lower than the previous year and can be attributed to the 9.5% increase in the number of values completed. The additional values were primarily in lower cost mass appraisal areas, notably metropolitan gross rental valuations.
Timeliness Measure
| Measures | Actual 2002/2003 | Target 2003/2004 | Actual 2003/2004 |
| Extent to which valuations are completed within target times or times agreed with clients: | |||
| a) General Valuations | 94.5% | 98% | 99.6% |
| b) Market values, stamp duty values, plant and equipment values and consultancy advice | 72.6% | 85% | 74.8% |
| Asset values for the Government Property Register by 30 June | 100% | 95% | 98.4% |
The General Valuation percentage completion target of 98% is a combined measure for both gross rental value and unimproved value revaluations. The outcome of 99.6% represents both the percentage of values completed by the 30 June and the extent to which values were not available to clients by the date agreed. The outcome is a very good result for such a large proportion of the valuation service provided.
Asset values for the Government Property Register comfortably exceeded the target requirement. The outcome for other valuations of 74.8%, while below the target, was an improvement on the previous year despite the very difficult circumstances relating to the retention and recruitment of qualified valuers caused by the very buoyant state of the property industry.
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