Question details
Morwell electorate
(1198) My question is for the Minister for Planning, and my question is: why is the minister refusing to explain the rationale for the valuer-general’s outrageously inflated land valuations for the purpose of land tax assessments? I have written to the minister on several occasions, but I am yet to receive an answer as to how the valuer-general can feasibly claim that the value of a parcel of land without any capital improvement or other adjustments can double and in some instances even triple in the space of a year. One small local business, Australian Char, which makes the iconic heat beads, has been told its site in Morwell is supposedly valued at $1.25 million, more than double the reported valuation that was issued just 12 months ago. It absolutely defies all logic that Victorians are receiving massive land tax bills for parcels of land that have supposedly and miraculously more than doubled in value year on year. Minister, why are you refusing to explain the rationale for the valuer-general’s outrageously inflated land valuations?
I thank you for your question about annual general valuations: specifically, the increase in Site Value of the Australian Char property at 3-7 Swan Road, Morwell. I also note that I have responded to your correspondence to the Treasurer on this matter.
The Valuer-General is responsible for undertaking or overseeing the return of annual rating valuations which are made for rating and taxation purposes. Three levels of value are returned for each property (Site Value, Capital Improved Value and Net Annual Value) as at 1 January of that year. The levels of value are assessed annually independently of the values that were returned the previous year. This means that there is no percentage change or indexation applied, rather, valuers rely on recent, relevant sales evidence and all known property details to determine the appropriate level of value at the relevant date.
The annual general valuation reflects fluctuations in the property market. Generally, the industrial market has seen stronger increases in value compared with other property types across the State in recent times. From time to time, there may be more significant changes in a property’s returned Site Value, as was the case for the Australian Char property. Where such changes occur, they may be attributed to varying factors including, recent sale evidence which the valuer has considered to adjust the land value in the local area. The increase in Site Value alone, cannot be considered reflective or indicative of annual market increase in a property type or locality. Larger comparative changes in Site Value can result where there has been a scarcity of sales evidence in previous general valuation returns, and with more recent, relevant sales evidence, enabling the valuer to capture the current market levels.
If a person disagrees with a valuation displayed in their council rate notice or land tax assessment notice, they have the right to object to that valuation and have it reviewed by a valuer. This review provides the objector and valuer the opportunity to exchange facts and sales evidence and discuss the valuation with a view to determining whether an adjustment is required. This process proves beneficial in informing the Objector of the rationale and evidence relied upon. The Valuation of Land Act 1960 sets out the process and requirements for lodging an objection, including the statutory timeframe within which an objection must be lodged. The Valuer-General is unable to review or alter valuations outside of the objection process.
Hon Sonya Kilkenny MP
Minister for Planning