Special Bulletin | QLD Valuation Notices

Annual valuations have recently been issued by the Department of Environmental and Resource Management (DERM) which values land at unimproved value. These valuations are used for a number of purposes including the charging of land tax by the Office of State Revenue. 

The standard objection period is 45 days from the date of the valuation. Therefore, we strongly recommend that, should you believe the valuation to be incorrect, you act now as the normal objection period will expire at the  end of  April  2010. The valuations will take effect from 30 June 2010.

Importantly please note, if you do feel that the valuation is incorrect, that the Valuation of Land and Other Legislation Amendment Bill 2010 is before the Queensland Parliament at present. If this Bill is approved objections lodged regarding 2010 valuation will need to comply with the new provisions, making it more onerous as to the information required to be lodged within the 45 day period. 

Information that the landowner will need to provide includes:
   • valuation reports
   • assessment of insurance replacement costs

 The DERM may also review the following information when assessing your objection -
   • draft valuation reports
   • draft town planning reports
   • records of discussions with third parties such as purchasers, vendors or agents regarding the objectors land.

Please note if the unimproved value is greater than or equal to $2 million the DERM may request this information from the landholder. The landholder has 28 days to comply with this request, with an option to extend this by a further 14 days.
Land Tax and Unoccupied Residences

Please note that a recent case was considered by the courts which deals with a Principle Place of Residence (PPR) being unoccupied for a period of 12 months whilst extensive renovations where conducted.

To qualify for the PPR land tax exemption the following two conditions must be satisfied:
   1. the land was used 'continuously' as a residence for the six month prior to 30 June on which the assessment was issued
   2. the Commission is satisfied that the land is being used as the taxpayers PPR.

The landowner won this case on the basis that the courts ruled that the only other use of this land was that of a building site which was quickly dismissed. However, it is important to note that whilst the landowner won in this case the commissioner  of land tax argued strongly against this property being included for the PPR exemption and that the onus of proof was place on the landowner. 

Therefore, it is important to keep in mind the following from a land tax perspective:
• the length of time a property has been used as a PPR prior to the any substantial renovations.
• in the above case the time period for the renovations was out of the landowners control and the courts did check this.
• emphasis was on the fact that this was a renovation and not a demolition or construction.
• If the land is held in NSW you are required to use and occupy the land where as in QLD you are only required to use the land.
• it is possible to retain PPR status, without satisfying the commissioner, if the continuous use of the property occurs prior to 30 June.

Should you have any questions in relation to the above or would like to discuss your recent land valuations, please contact our office.

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