Queensland's system of land valuation is set for change with
the introduction into State Parliament of the Land Valuation Bill
2010 on 1 September 2010, which repeals the Valuation of Land
New valuation methodology for non-rural land
The Bill requires the Valuer-General to ascertain the site value
of all non-rural land in Queensland. The site value approach
assumes that all the existing surrounding development,
infrastructure and services around the subject land at the date of
valuation are in place, but also includes as part of the assessed
value the ground improvements which have been undertaken to the
land (eg. clearing, levelling, drainage, filling, reclamation,
retaining walls, stone picking and contamination).
In effect, the site value requires a valuer to determine the
value of improved land assuming that the land consists of a flat
building pad ready to develop.
The site value methodology is similar to that currently
operating in New South Wales and Victoria.
The Bill does not change the valuation methodology for
unimproved land and requires the unimproved value of rural land to
Shopping centre valuation formula removed
The shopping centre valuation formula included in the Valuation
of Land Act has been removed. Shopping centres will now be valued
adopting the site value methodology.
Annual valuation cycle
The Valuation of Land Act currently requires each local
government area to be valued at least once every five years. The
Bill requires valuations to be undertaken annually, except in
Removal of intangible elements
The Bill specifically excludes the value of leases, agreements
for lease, mortgages or other charges from the definition of both
site value and unimproved value.
The new definition of site improvements makes it clear that all
improvements that are not defined as site improvements are excluded
from the calculation of site value.
Allowance for new site improvements carried out
The Bill requires the Valuer-General to determine a reasonable
allowance for site works carried out to land after the commencement
of the Bill. The Valuer-General is required to deduct the value of
these improvements for up to 12 years or upon the sale of the
subject land, whichever occurs first.
This allowance means that the cost of site works will
effectively be excluded from the site value during the preparation
of land for development.
Allowance for existing site improvements
The Bill includes provisions which limit the impact of the
change from unimproved value to site value on properties that have
significant site works. Where there is an increase in value of more
than $1million between the existing unimproved value and the new
site value in the first year when site value was introduced, the
difference will be offset in equal instalments over a 12 year
New objections and appeals process
The time for lodging an objection has been extended from 45 days
to 60 days and the time for lodging an appeal has been extended
from 42 days to 60 days.
The requirements of a properly made objection in the
Valuation of Land Act 1944 have been retained, but some of
the more onerous provisions (for example, the requirement to
provide valuation reports and depreciation schedules when lodging
an objection) have been removed.
The grounds of appeal are no longer restricted to those grounds
of objections included in the initial notice of objection. The Bill
includes a requirement that the Department must offer the owner of
land with a site value of greater than $5million an objection
conference if they lodge an objection. There is also a requirement
that documents be provided by the Department and by the owner in
relation to their respective valuations for the objection
The changes should simplify the objection process and allow for
the speedy resolution of the objections at the objection stage.
Appointment of Valuer-General
The Department has appointed a Valuer-General who is now
responsible for the administration of the valuations in Queensland,
and is responsible for issuing valuations and handling
The Bill provides that the Valuer-General is to be truly
independent, and can only be removed from office by the Governor in
Council in certain circumstances.
It is proposed that the valuations to be issued as at 1 October
2010 will be issued under the Land Valuation Bill 2010 and that
those valuations will be carried out in accordance with the new
system contained in the Bill. We expect that the Bill will be
passed in the next parliamentary sitting starting on Tuesday, 14
The valuations as at 1 October 2010 will take effect for the
financial year commencing 1 July 2011 and will be issued before
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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