The Property Council of Australia (Queensland division) today called on the Premier not to introduce legislation next week to change land valuation methods in Queensland.
Property Council of Australia Executive Director, Steve Greenwood, urged the Premier to hold urgent consultations with industry groups before any legislation is introduced.
“The Government announced on January 11 that it would amend the Valuation of Land Act to ‘clarify’ the definition of unimproved value.” Mr Greenwood said.
“This followed a decision by the Land Appeal Court in October 2007 on the Westfield Chermside Shopping Centre case.
“The Property Council understands that the proposed amendment to the Act goes well beyond a clarification, and will radically change the method of land valuation that has been in use in Queensland for more than 70 years.
“This current valuation method was upheld by the Land Appeal Court in the Chermside case.”
Mr Greenwood said the Property Council had received legal advice that the proposed new methodology would tax the profit and risk of developers when they develop land.
“The proposed legislation would constitute a new business tax that would impact on a broad range of industries - not only commercial property.” Mr Greenwood said.
“This could include tourism properties, hotels, down-stream metal processing and manufacturing properties and improved rural lands.
“Land tax would no longer be a tax on the unimproved capital value of the land.”
Mr Greenwood stressed that it was important that the ramifications of the proposed legislation be fully discussed with industry before the Government proceeds.
Media enquiries:
Steve Greenwood, Executive Director, 07 3225 3000, 0488 721 156,
sgreenwood@propertyoz.com.au
