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Disclaimer

This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in these articles is for guidance only and should not be relied upon without obtaining professional advice having regard to your direct circumstances.

 

Your Land Value: A brief guide to the land valuation process

Why is your land valued?

Land values are used by local councils for rating and the Office of State Revenue (OSR) for managing land tax.

Rating

Land values are issued to councils for rating at least every four years. These land values are fixed for rating until new land values are issued to council.

Land values are one factor used by councils in the calculation of a landowner’s rating liability. Increases in land values do not necessarily lead to similar increases in rates. If you would like more information on the determination of your rates you should contact your council.

Land Tax

The Valuer General supplies land values to the Office of State Revenue (OSR) each year. The OSR manages land tax and issues land tax assessments to registered, liable landowners. The OSR use land values to determine taxable land value.

If you own property in NSW that is not your principal place of residence or is not land used for primary production, you may be liable for land tax if the total value of land exceeds the land tax threshold. The threshold for 2010 is $376,000.

What is land value?

Land values in NSW are determined under the Valuation of Land Act 1916.

Land value is the value of your land only. Land value does not include the value of your home or other structures and improvements on your land. However, works including clearing, filling, draining and retaining walls are included in your land value.

When is your land valued?

Land values are determined annually as at 1 July and reflect property market conditions at that time.

Who values your land?

The Valuer-General is responsible for providing fair and consistent land values for rating and taxing purposes. 

Professional valuation contractors prepare land values for the Valuer General. Valuers from Land and Property Information (LPI), Land and Property Management Authority (LPMA), check the quality of land values before they are accepted and issued.

How is your land valued?

Most land is valued using the mass valuation approach, where properties are valued in groups called components. The properties in each component are similar or are expected to reflect changes in value in a similar way.

Representative properties are selected from components and individually valued as at 1 July each year to determine how much the land value has changed from the previous year. This change is then applied to all properties in the component to determine their new land values. Sample valuations are then checked to confirm the accuracy of the new values.

During the valuation process, valuers analyse sales of both vacant land and improved properties, making adjustments for the added value of improvements.

The value of improvements is their worth as reflected by the real estate market in an area. The value of improvements is generally not equal to their replacement or insurance value.

What factors are considered when valuing land?

When comparing property sales to the land being valued, valuers consider factors such as:
• property market conditions as at 1 July in the year of valuation
• most valuable use for the land
• location of the land
• constraints on use such as zoning and heritage restrictions
• land size, shape and land features, such as slope and soil type
• nearby development and infrastructure
• views.

Concessions and/or allowances applying to your land under the Valuation of Land Act 1916 will be printed on your Notice of Valuation or land tax assessment.

Factors such as personal circumstances, council rates and land tax liability are not considered when determining land value.

How can you access your land value?

Your Notice of Valuation shows the land value of your property. You receive your Notice of Valuation when new land values are issued to your council for rating purposes.

You can access land values through the land value search facility on the LPMA website, www.lpma.nsw.gov.au or over the counter at LPI valuation offices. Strata owners can access both the land value for the site of the strata scheme and the proportional value for their lot based on unit entitlement.

There is no fee for landowners to access their land values through the website for the valuing years 2007, 2008 and 2009. Other online land value searches and all land value searches obtained through an LPI valuation office incur a fee.

If you are a registered land tax client, the land value(s) used to determine your 2010 land tax assessment will be recorded on the assessment notice. You can access the land value(s) at www.osr.nsw.gov.au.

Can you have your land value reviewed?

If you disagree with the land value on your Notice of Valuation or a land value included in your land tax assessment, you can lodge an objection with the Valuer General to have the land value reviewed.

Information about objecting to your land value and lodging an objection online is available from the LPMA website, www.lpma.nsw.gov.au/valuation. Alternatively, landowners can request an objection kit, which includes an information booklet, valuation objection form and general valuation sales report by phoning 1800 110 038.

Objections must be lodged using the valuation objection form or by using the online objection facility by the last date to object shown on your Notice of Valuation or not later than 60 days from the date of issue of your land tax assessment.

NSW Land and Property Management Authority
January 2010

 


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