More than one million properties are due to receive new land valuations for rating, land tax and State land rental purposes. Landowners have the right to object to the valuation of their property, but strict timeframes and requirements apply.
New land valuations
The Valuer-General is due to issue new valuations for 29 local government areas across Queensland, including Brisbane, Gold Coast, Sunshine Coast, Rockhampton, Townsville and Cairns, in March.
The Land Valuation Act 2010 gives owners the right to object to new valuations. This is important as changes in statutory land value can have a significant impact on landowners in terms of property values and financial costs. For example:
- each reduction in valuation of $1,000,000 for land holdings valued over $5,000,000 held by companies or trustees reduces land tax by $20,000;
- as a rule of thumb, each reduction of $100,000 in the statutory valuation increases the value of commercial investment property by $30,000 – 40,000.
Objecting to new valuations
The new valuations are issued under what is known as a ‘mass appraisal’ system whereby changes in market value are broadly analysed and applied to the properties being valued. The new valuations may therefore fail to take account of a range of relevant factors, such as physical characteristics or legal restrictions on the land being valued. Sales evidence may also be wrongly applied. This can cause a range of errors resulting in excessive valuations.
Objections must be lodged and received by the Valuer-General within 60 days of the date of issue of the valuation notice. Any objection made out beyond this time is invalid and cannot be considered.
Objections must also provide sufficient information to demonstrate that the valuation is incorrect, and include all required information in accordance with the Act.
The landowner has the onus of proving that a valuation is incorrect and owners should consider seeking professional advice to ensure that objections are properly made and based on relevant grounds.