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HG Alert: 2010 Land Valuations to be Released Next Week - 17 Mar 2010

After extensive and successful lobbying from various industry organisations, the State has agreed to a number of significant amendments to the Valuation of Land and Other Legislation Amendment Bill 2010. The amended Bill as passed commenced on 12 March 2010.

The amendments made to the Bill address many of the concerns raised in our paper A Radical Change to Queensland’s Rating and Land Tax System.

Significantly, the State has committed to a full review of Queensland’s valuation system in time for the release of the 2011 valuations in March next year. As part of that review, the State has signalled a move to site valuations rather than unimproved valuations. This would bring Queensland in line with many of the other Australian states.

The Bill as passed continues to provide for the value of goodwill, leases, infrastructure credits and development premium in the unimproved valuation of land. It will only apply to the 2010 valuations and to any existing appeals not resolved by 30 June 2010. A sunset clause has been included so that the Bill as passed will not apply to subsequent valuations.

Land valuations for 2010 are expected to be issued by the Queensland Government on 22 March 2010. The local government areas affected are Balonne, Banana, Brisbane, Bundaberg, Cassowary Coast, Charters Towers, Cook, Croydon, Etheridge, Fraser Coast, Gold Coast, Lockyer Valley, Moreton Bay, Redlands, Rockhampton, Somerset, South Burnett, Southern Downs, Torres, Townsville, Weipa, Western Dows and Whitsunday.

Even though the Bill as passed applies to 2010 valuations, it is anticipated that these valuations will generally be lower than previous years, reflecting the impact of the global financial crisis on the property industry. For those local government areas last valued in 2007, there is expected to be a reduction in valuations. For example, commercial values in Brisbane and on the Gold Coast are expected to reduce by about 7 percent and 16 percent respectively, with properties in the CBD expected to decrease by about 15 percent. Properties in local government areas that have not been valued since around 2004, however, are likely to experience increase in valuations. For example, commercial values in Redlands are expected to increase by about 60 percent.

The Bill as passed has significantly changed the process for objecting to valuations. This more onerous process will apply for objections made for 2010 valuations. While an owner will still have 45 days after the date the valuation is issued to lodge an objection, the extent of material required to support an objection has increased dramatically. Any objection that does not meet the new requirements is likely to be treated by the Department as not being “properly made”.

For more information about the review to the State’s valuation system or for help to prepare objections to the 2010 valuations, please contact HopgoodGanim’s Planning and Development practice.