New land valuations are due to be issued to landowners in 41 local governments by the end of March 2014. Owners should be taking steps now to prepare for the review of new valuations.
The new valuations will be used for rating, land tax and State land rental. Changes in valuation can have a significant financial impact on owners in terms of costs and value. For example:
- each reduction in valuation of $1,000,000 for land holdings valued over $5,000,000 saves owners $20,000 in land tax;
- as a rule of thumb, each reduction of $100,000 increases the commercial value of investment property by $30,000.
Objections to valuation
Gadens have assisted owners of a range of properties, including shopping centres, commercial offices, industrial, retail, and sport and recreational land, to obtain valuation reductions of over 50% and reductions of tens of millions of dollars on individual properties.
There is a strict 60-day objection period for landowners to review new valuations and object if they disagree with the new valuation.
Each year we encounter situations where landowners have missed the opportunity to object because they did not realise new valuations had been issued or failed to act in time (e.g. their contact details were out of date, valuations were received by agents or advisors who did not pass on the information in time, or they did not appreciate the significance of the valuation or time limits until too late).
Landowners should be ensuring their contact details are current and that appropriate arrangements are in place so that new valuations are received and reviewed promptly.
Legal and valuation advice should be sought in relation to any proposed objections as stringent requirements apply to making objections.
New valuations will be issued for major property markets across the state, including Brisbane, Gold Coast, Moreton Bay, Toowoomba, Gladstone, Whitsunday and Cairns.
The full list of local government areas subject to new valuations can be found here.