Recently, the Valuer-General began issuing statutory valuations for all land in Queensland. Deductions for site improvements now apply for all land valued using the Site Value methodology, which is all residential and commercial land that is not zoned rural. Farmers may be eligible for the farming concession.
As a landowner, you should consider whether you may be eligible for a deduction off the applied Site Value for site improvement works necessary to prepare the land for development. Deductions for site improvements apply for works that increase the value of the land, including:
- clearing vegetation;
- works to manage or remediate contaminated land under the Environmental Protection Act 1994;
- restoration or remediation works that improve the land's surface, which can include filling, grading, levelling or retaining walls;
- reclamation works including reclaiming land by draining or filling;
- underground drainage; and
- any other works needed to improve or prepare it for development.
Site improvements do not include any building or associated works, such as excavation for footings, carparks or landscaping and drainage for building works.
For example, a developer purchases a large block of land to subdivide for residential allotments. There is a large industrial shed on the land with the remainder of the block covered in vegetation. To prepare the land for subdivision, significant site works are required, including remediation for contamination, tree clearing and levelling, filling and revetment works. These works may be eligible for a deduction for site improvements.
For the purposes of site valuation and deductions, it does not matter if the land has been developed or previously had buildings on it that have been demolished.
If you think that your site valuation does not adequately reflect deductions for site improvements, you will need to lodge a Deduction for Site Improvements (DSI) claim.
To be eligible for the deductions the landowner must:
- have paid for the site improvements within the past 12 years;
- owned the property when the site improvements were paid for; and
- still own the property.
Cooper Grace Ward is a leading Australian law firm based in Brisbane.
This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please contact Cooper Grace Ward Lawyers.