Following weeks of persistent lobbying from the property sector, Premier Anna Bligh this week announced significant changes to the Queensland
Following weeks of persistent lobbying from the property sector, Premier Anna Bligh this week announced significant changes to the Queensland land valuation system.
Bligh has committed to moving to site valuation, consistent with other jurisdictions and in line with what the property industry and local government have been seeking for some time.
The Government had introduced a bill to legalise the way commercial, industrial and residential land was valued for tax purposes, after the Land Court revealed it had “falsely” inflated unimproved land values as far back as 2002.
If passed, the proposed legislation would have redefined the meaning of unimproved land for commercial purpose by taking into account factors such as the value of leases, goodwill, infrastructure charges and entrepreneurial development profit.
Industry bodies such as Queensland’s Property Council strongly argued this would be a “disaster” for business, resulting in increased land valuations and subsquent future bills.
Bligh has now abandoned the move, whereby all land will now be valued under a new system of ‘site valuations’ – reportedly based on vacant land value.
Under the new structure, the government will appoint an independent Valuer General to provide transparency in the assessment and issuing of valuations.
“The Government will pass legislation so the method for valuing property is crystal clear, now and into the future,” Bligh says.
“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.
“This resolution means the status quo is maintained – no new taxes for property owners and no big refunds from State or local governments.”
As announced by the Premier this week, the State will:
- Move to adopt the ‘site value’ methodology similar to that used in other Australian states from the 2011 valuation, for property except rural areas
- Introduce an independent statutory position of Valuer General, to lead Queensland’s State Valuation Service
- Change its current legislation to allow appeals to be settled under the current Act until June 30, 2010, validate previously issued valuations and address other industry concerns.
Bligh has confirmed the Minister for Natural Resources, Mines and Energy and Minister for Trade will 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.