The Property Council is calling on the government to reconsider its decision not to undertake valuations in Queensland's key growth areas. In particular:
- Cairns Regional
- Gladstone Regional
- Ipswich City
- Logan City
- Mackay Regional
- Scenic Rim Regional
- Sunshine Coast Regional
- Toowoomba Regional
Department of Environment and Resource Management, Director-General, John Bradley said that he considered a number of criteria under the Valuation of Land Act 1944 to determine which local governments will be valued.
“These included market survey reports, consultation with local governments and industry groups, and the impact of valuations used for land tax or rental purposes,” Mr Bradley said.
“Other criteria included the length of time since a valuation was carried out, relativity of valuations in an area compared with those in adjacent local government areas, and the valuation program over the next five years.” Mr Bradley said
The Property Council is concerned about the impact this decision will have on future land tax liabilities in these areas.
Property values are a critical component in calculating the land tax liability of property owners. Therefore the State Government’s decision not to undertake valuations in 2008/09 meant that the reduction in property values seen through this period was not considered in the calculation of 2009/10 land tax bills. So the property industry took a double hit - reduced property values and higher land tax bills.
This is why it is so critical that valuations be undertaken in 2009/10, otherwise the three year average used to calculate property values for land tax liabilities would be very heavily weighted to 2007/08 figures - the height of the property boom. This is the situation facing land owners in the council areas listed above.
Property Council Queensland Division Executive Director Steve Greenwood has written to Mr Bradley asking him to reconsider his decision to exclude these councils from the 2009 valuation round.
The good news is that property owners in areas such as Brisbane will get some relief in their 2010 land tax bill because it will more closely align to actual property values. Unfortunately however, areas such as Logan, Ipswich and the Sunshine Coast will be hit hard yet again.
Further information on the upcoming round of valuations can be found at
http://www.nrw.qld.gov.au/property/valuations/index.html
