This article is from the Australian Property Journal archive
THE Queensland Government has moved to change the state’s land valuations system in a move to stop hundreds of millions of dollars in claims arising from a recent Court decision.
A Land Court decision found that the current land tax valuations system for commercial, industrial and residential land had “falsely” inflated unimproved land values since 2002. And a subsequent Court of Appeal ruled the Gold Coast land on which Pacific Fair Shopping Centre stands was over-valued by $207 million.
This has already resulted in the government refunding owners millions of dollars in tax taxes in some cases.
According to Court records, there are more than 300 unresolved cases dating back to 2002 which would could potential expose the government to hundreds of millions of dollars in land tax refunds.
Premier Anna Bligh yesterday assured that the new Queensland land valuations system will provide greater certainty and align it with other states.
Bligh also hinted that government has been pressured by the property industry and companies like Westfield, as well as the local government.
Bligh said the government will also put in place a new structure including the appointment of an independent Valuer General.
Meanwhile in dealing with the past, the government will legislate to maintain the status quo by validating valuations already issued.
“The Government is determined to protect Queenslanders from the potential for hundreds of millions in repayments which has emerged after a recent Court decision.
Under the changes, appeals settled under the current Act until June 30 2010, validate previously issued valuations and address other industry concerns.
“This resolution means the status quo is maintained – no new taxes for property owners and no big refunds from State or local governments,” she continued.
“The Government will pass legislation so the method for valuing property is crystal clear, now and into the future,” Bligh said. “This will allow us to complete the 2010 valuation with certainty, but we will then go further and introduce the simpler method of valuation – ‘site value’ – for non-rural lands from the following year,”
Bligh confirmed that the Minister for Natural Resources, Mines and Energy and Minister for Trade, Stephen Robertson, would introduce a number of amendments to the Valuation of Land and Other Legislation Amendment Bill 2010 to put beyond doubt some of the industry feedback heard in recent weeks.
Robertson said for the landholder, this will mean valuations will reflect what can actually be ‘seen from the street’ and will allow easier comparison with other land values.
“Importantly, the new system will not result in significant changes to rates and property taxes. This is not a new revenue raising measure – this is about providing certainty for the future,” he reiterated.
The issue has dogged the government for years, in February 2007 the Court of Appeal upheld Multiplex’s challenge by finding the unimproved value of 240 Queen St as at October 2003 was $13.4 million — almost $30 million less than the $43 million value proposed by the Department.
Multiplex’s valuer at the time m3property strategists, provided evidence that the Department’s valuation was incorrect.
Australian Property Journal
