Flashcards in week 2 Deck (25)
role of valuer of general vic (6)
1. To carry out the duties and functions conferred by this or any other Act;
2. To cause general valuations and supplementary valuations to be made;
3. To establish and maintain the valuation record, and to make certain parts of the valuation record publicly available in accordance with section 7D;
4. To collect and collate such evidence as he thinks necessary or desirable to assist valuers in the making of valuations;
5. To make available to valuers any evidence that may be of assistance in the making of valuations;
6. Generally to investigate and report to the Minister on any matter he considers likely to improve the standard of valuing in Victoria.
explain vauation vest practice
Valuation best practice specifications guidelines is a document made under section 5AA of the Act, VBPSG provides framework of processes, tasks and outputs required for the return of a general valuation that meets all qualitative and legislative standards approved by the valuer-general.
o 2019 VBPSG incorporates all changes made to the act up to 20 December 2017
o Important changes in 2019 VBPSG include:
• How valuer general’s responsibilities for causing general valuations and supplementary valuations are to be met
• The process for returning general valuations annually
• The process for requesting and returning supplementary valuations
explain a general valuation
A valuation authority must cause a general valuation for all rateable and non-rateable leviable land to be made, as at the prescribed date of 1 January 2019 (date of valuation). Each separate occupancy on rateable and non-rateable (e.g. Rsl, crown land, charitable organisation) leviable land must be computed at its net annual value, capital improved value and site value, and be allocated an Australian Valuation Property Classification Code (AVPCC).
In accordance with Sections 7AC and 7AD of the Act, the Valuer-General is required to determine if the valuation is generally true and correct and accordingly certify to the Minister.
As such, VGV audits the valuation submissions in stages and notifies the council of satisfactory progress (certification) or issues a rectification notice
what is the Victorian Annual Valuation Process:
Stage 1: Preparation – project plan, data validation, Sub market groups and High risk properties review:
Stage 2: Analysis – inspections, data accumulation, sales analysis and modeling:
Stage 3: Application – Apply and confirm Valuations:
Stage 4: Review – Quality assurance and return:
explain - stage 1: Preparation – project plan, data validation, Sub market groups and High risk properties review:
o This stage involves general planning and preparation for the revaluation
o It commences with the environment scan to understand requirements, systems and resources
o It requires that all assessments and valuation data are migrated from the previous revaluation into the VGV valuation software (VBPSG complaint valuation system) and reconciled for all changes
o It confirms that the sub market groups for sales analysis and valuation application and identifies high risk properties (high revenue inflow for council)
explain Stage 2: Analysis – inspections, data accumulation, sales analysis and modeling
o Stage 2 is the data collection stage
o Comprises; collection of sales and leasing data, property inspections of sales (outliers and specialist properties/high risk properties), confirmation or collection of property attributes and any remedying of data gaps identified
explain stage 3 Application – Apply and confirm Valuations:
Stage 3 comprises the application of stage 2 levels of value and the valuation of all properties
explain stage 4 review
Stage 4 comprises; the return of the valuation of the VG, QA completion of the valuers final report and provision of the returned valuation and data to the council
explain speacilist property guidelines
o To fulfil the Valuer-General’s duties under the Act, VGV’s website holds various papers including valuation policies, fact sheets, practice notes, specialist guideline papers and the VBPSG.
o These papers are provided to valuers in order to establish a consistent interpretation of the Act and any other relevant legislation or precedent.
o Specialist guidelines have been developed for the following specialist properties
• Aged Care
• Development Land
• Golf courses
• Hotels and Motels
• Outdoor advertising signs
• Non-rateable Leviable Properties
• Petrol Stations
• Plant and Equipment
• Shopping Centres
define site value
Means the sum which the land, if it were held for an estate fee simple unencumbered by any lease, mortgage or other charge, (ignore current lease of charges in place) might in ordinary circumstance be expected to realise at the time of the valuation (valuation date) if offered for sale on such reasonable terms and conditions as a genuine seller might be expected to require, and assuming that the improvements (if any) had not been made
“improvements” for the purpose of obtaining the site value of land, means all work actually done or material used on and for the benefit of the land, but only so far as the work done or material used increases the value of the land and the benefit is unexhausted at the time of valuation, but except as provided in subsection (2AA) does not include:
explain site value and the 15 yr rule
o Site improvements as defined under Section 2 (b) of the VLA are improvements included in the site value unless those improvements can be shown by the owner or occupier of the land to have been made by the person or at that persons expense within fifteen years before the valuation.
o If these improvements have been carried out within the 15 years the valuer must ascertain the added value of these works (if any) and assume they have not been made (don’t consider value added by improvements)
Principles of Site Value – Case Law:
Tooheys Limited v Valuer-General (NSW) 1921 -
Improvements and their assumed non-existence
o Land improved with licenced premises.
o In assessing the value of the land the improvements on the land must be ignored, including a liquor licence and goodwill value that was there due to the improvements.
o Not proper to work out improved value and then deduct the cost of improvements’
o True test is what would the land sell for.
“… Words could scarcely be clearer to show that the improvements were to be left entirely out of view. They are taken, not only as non-existent, but as if they had never existed…”
define capital improved value
capital improved value"
means the sum which land, if it were held for an estate in fee simple unencumbered by any lease, mortgage or other charge, might be expected to realize at the time of valuation if offered for sale on any reasonable terms and conditions which a genuine seller might in ordinary circumstances be expected to require; (similar to market value and does include any improvements to the land)
Define estimated annual earnings
means the rent at which the land might reasonably be expected to be let from year to year (free of all usual tenants' rates and taxes) less— (don’t take into account maintenance works, fixture and fittings etc)
How is EAV determined
➢ the estimated annual value of the land (EAV), or
➢ 5% of the capital improved value of the land
whichever is greater
Exception - always 5% of the capital improved value of land for
• Farm land
explain Determining the Value of the Land:
S. 5A Determining value of land
(2) In considering the weight to be given to the evidence of sales of other lands when determining such value, regard shall be given to the
• Time at which such sales took place,
• The terms of such sales,
• The degree of comparability of the lands in question
• And any other relevant circumstances.
(3) Without limiting the generality of the foregoing provisions of this section when determining such value there shall, where it is relevant, be taken into account—
(a) the use to which such land is being put at the relevant time, the highest and best use to which the land might reasonably be expected to be put at the relevant time and to any potential use;
(b) the effect of any Act, regulation, local law, planning scheme or other such instrument which affects or may affect the use or development of such land;
(c) the shape “size topography” soil quality situation and aspect of the land;
(d) the situation of the land in respect to natural resources and to transport and other facilities and amenities;
(e) the extent condition and suitability of any improvements on the land; and
(f) the actual and potential capacity of the land to yield a monetary return (rental income)
explain section 2.3 land that forms part of larger property
Section 2.3 Land which forms part of a larger property:
E.g. Eureka Tower, Melbourne comprises 556 apartments, how do we come up with the site value for each apartment?
According to S2(3). VLA 1960
S.2(3) If it is necessary to determine the capital improved value or site value of any rateable land in respect of which any person is liable to be rated, but which forms part of a larger property, the capital improved value and site value of each part are as nearly as practicable the sum which bears the same proportion to the capital improved value and site value of the whole property as the estimated annual value of the portion bears to the estimated annual value of the whole property.
• Site value and then apportioned by apartments. Estimate each apartment estimated annual value for each of the apartment. Work out the % of a particular apartments EAV relative to the whole complex, and appy that % to the site value to get that apartments particular value
what is a supplementary valuation
• A supplementary valuation is an updated valuation of a property for rating purposes whose valuation was previously set at the relevant date
• Any supplementary valuation when returned and certified by the valuer-general under section 13DFA must be treated as a part of the valuation in force and has the effect of cancelling anything contained in the existing valuation which is not consistent with the supplementary valuation.
• It can be made at anytime throughout the year due to any of the reasons specified in section 13DF (2) of the Valuation of Land Act 1960
A supplementary valuation may be made in any of the following circumstances
(a) if any land which should be included in the valuation then in force is not included;
(ab) if any land which should not have been included in the valuation then in force was included;
(b) if the value of the land is materially altered by the approval of a planning scheme under the Planning and Environment Act 1987 or an amendment to a planning scheme under that Act, or by the granting, refusal or cancellation of a permit under such a scheme; (e.g. changing zoning from farming to residential land)
(c) if by reason of the sale of lots, any land in respect of which two or more persons are liable to be rated has been valued together as rateable land;
(d) if by reason of the purchase of land or any other cause, any land in respect of which only one person is liable to be rated has been valued as if more than one person was liable to be rated;
e) if any land has become rateable since the return of the existing valuation;
g) if by reason of—
(i) any building on the land being included in the Heritage Register established under that Act; or
(ii) any building ceasing to be included in the Heritage Register established under that Act; or
(iii) the issue of a permit under the Heritage Act 2017 to remove, demolish or alter a building included in the Heritage Register established under that Act or to subdivide or develop any land—
the capital improved value, net annual value or site value of that land has been materially decreased or materially increased;
(h) if by reason of the destruction or removal of buildings or other improvements on land or by reason of any physical changes of a permanent nature to land or improvements or by the making of roads or any other work of man or by adverse natural causes, the capital improved value, net annual value or site value of that land has been materially decreased;
(i) if any land or part of any land is burdened by a covenant under section 3A(1) of the Victorian Conservation Trust Act 1972 or, if upon variation or release of such a covenant, the capital improved value, net annual value or site value of that land has been materially decreased or materially increased;
(j) if by reason of the erection or construction of buildings or other improvements on land or by reason of any physical changes of a permanent nature to land or improvements or by the making of roads or any other work of man or by favourable natural causes, the capital improved value, net annual value or site value of that land has been materially increased;
(k) if there has been a change in occupancy which affects the net annual value of the land;
(ka) if there has been a change in occupancy which affects the AVPCC allocation given to the land;
(l) if there has been an error made in the AVPCC allocation given to the land, discovery of which has given rise to a change in the land use classification of the land;
(la) if any rateable land that was not leviable land has become leviable land since the return of the existing valuation;
lb) if any rateable land that was leviable land has become land that is not leviable land since the return of the existing valuation;
(m) if by reason of the sale, transfer or conveyance of any land or the transfer, surrender or expiration of a lease of any land there are on the land any of the improvements described in paragraph (b) of the definition of improvements in section 2(1) which were not made by the person who is the owner or occupier of the land;
(n) if for any reason other than a reason referred to in any of paragraphs (a) to (m), the capital improved value, net annual value or site value—
(i) of any land specified by Order of the Governor in Council published in the Government Gazette; or
(ii) of the land in any area specified by Order of the Governor in Council published in the Government Gazette—
is or is likely to have been materially altered as a consequence of any Act, proclamation, Order in Council, regulation, by-law or local law;
(o) if any arithmetical error has been made in calculating any valuation upon which any rate is payable or if by reason of any error in describing the land or any matter relating to the land or any improvements to it, an incorrect valuation has resulted.
who may lodge an objection
S.16 (1), (4), (5), (6A) sets out who may object.
1. A person aggrieved by a valuation of any land
2. A person who is given a notice of valuation
3. A person liable for or required to pay any rate or tax in respect of land; and has not been given a notice of valuation.
4. A person receiving a notice of assessment
what must an objection contain
.16(2) An objection must—
(a) contain the prescribed information (if any); and
(b) give particulars of the bases of valuation to which objection is made; and
(c) state the grounds on which the objection is based.
explain grounds for objection
o that the value assigned is too high or too low;
o that the interests held by various persons in the land have not been correctly apportioned;
o that the apportionment of the valuation is not correct;
o that lands that should have been included in one valuation have been valued separately;
o that lands that should have been valued separately have been included in one valuation;
o that the person named in the notice of valuation, assessment notice or other document is not liable to be so named;
o that the area, dimensions or description of the land including the AVPCC allocated to the land are not correctly stated in the notice of valuation, assessment notice or other document.
explain timing of objection
S.18 Valuation of Land Act 1960 - An objection must be lodged
(a) within 2 months after the notice of valuation is given; or
(b) in the case of a person referred to in section 16(5)—
(i) if a notice of assessment of the rate or tax was served on the person by a rating authority, within 2 months after the notice was served; or
(ii) if a notice of assessment of the rate or tax was not served on the person by a rating authority and the person is the occupier of the land, within 4 months after the date of issue specified on the notice; or
(c) in the case of a person referred to in section 16(6A)—within 2 months after receiving the notice of assessment of land tax.
• Legislated timeframes set out in Section 18 are obligatory. The Valuer or VGV is deprived of any right to review the objection if it does not fall within the statutory time limit, and the municipality has no discretion to deal with late objections.
explain objection process
write out slide photos
- poppy andrews tits :P