Mr. Buswell questions the WA government's continued use of 'unimproved value' for land valuation, particularly in rural areas, compared to other states. The Minister acknowledges complexities and offers further discussion.

AnsweredQoN 1538Legislative Assembly
Asked
27 September 2006
Portfolio
Land Information

QuestionView source ↗

I refer to the
Valuation of Land Act 1978
and in particular to the statutory concept of unimproved value used in Western Australia, and I ask –
(1) Can the Minister confirm that no other states use this base measure due to its difficultly of determination and a lack of indicative sales data?
(2) What is the difference between the methodology applied to these valuations in Western Australian as opposed to other states?
(3) Why is it that Western Australia continues to use this method when it has been abandoned by other states?
(4) Will the Government consider altering the valuation methodology to bring it into line with the other states?

AnswerView source ↗

Answered
24 October 2006
Responded by
Minister for Land Information
Response time
27 days
(2) For Urban Land WA uses the same basis of Unimproved Land Value eg. 'site value' as all other States except Queensland which still uses the older definition for all property which excludes all improvements. For Non-Urban land WA introduced a unique amendment for the determination of UV in 1993 Section 4 (b) (vii). This applies to all agricultural land other than fringe Metropolitan Shires and some of the coastal Shires and high rainfall areas in the South West. The method provided a more easily understood and reliable estimation of the unimproved value in areas where there were no sales of unimproved land by adopting a prescribed percentage of improved value excluding any buildings. Since the above amendment it has become increasingly complex to calculate unimproved values in the areas not using the amendment and there are issues on the boundaries. If 'site' value was adopted for farm land as in other States the unimproved values would increase to include merged improvements of draining, filling, excavation, grading or levelling of the land, retaining walls or other structures or works for that purpose, the removal of rocks, stone or soil and the clearing of timber, scrub or other vegetation, where applicable. The inclusion of these items is not necessarily simpler or fairer for the assessment of rating and taxing values on farm land. (3) Not applicable. (4) The Valuer General is considering all options in reviewing Section 4 of the Valuation of Land Act 1978 and is happy to meet the Member and discuss in more details the options available, particularly for rural land.
For Non-Urban land WA introduced a unique amendment for the determination of UV in 1993 Section 4 (b) (vii). This applies to all agricultural land other than fringe Metropolitan Shires and some of the coastal Shires and high rainfall areas in the South West. The method provided a more easily understood and reliable estimation of the unimproved value in areas where there were no sales of unimproved land by adopting a prescribed percentage of improved value excluding any buildings. Since the above amendment it has become increasingly complex to calculate unimproved values in the areas not using the amendment and there are issues on the boundaries. If 'site' value was adopted for farm land as in other States the unimproved values would increase to include merged improvements of draining, filling, excavation, grading or levelling of the land, retaining walls or other structures or works for that purpose, the removal of rocks, stone or soil and the clearing of timber, scrub or other vegetation, where applicable. The inclusion of these items is not necessarily simpler or fairer for the assessment of rating and taxing values on farm land. (3) Not applicable. (4) The Valuer General is considering all options in reviewing Section 4 of the Valuation of Land Act 1978 and is happy to meet the Member and discuss in more details the options available, particularly for rural land.
Since the above amendment it has become increasingly complex to calculate unimproved values in the areas not using the amendment and there are issues on the boundaries. If 'site' value was adopted for farm land as in other States the unimproved values would increase to include merged improvements of draining, filling, excavation, grading or levelling of the land, retaining walls or other structures or works for that purpose, the removal of rocks, stone or soil and the clearing of timber, scrub or other vegetation, where applicable. The inclusion of these items is not necessarily simpler or fairer for the assessment of rating and taxing values on farm land. (3) Not applicable. (4) The Valuer General is considering all options in reviewing Section 4 of the Valuation of Land Act 1978 and is happy to meet the Member and discuss in more details the options available, particularly for rural land.
If 'site' value was adopted for farm land as in other States the unimproved values would increase to include merged improvements of draining, filling, excavation, grading or levelling of the land, retaining walls or other structures or works for that purpose, the removal of rocks, stone or soil and the clearing of timber, scrub or other vegetation, where applicable. The inclusion of these items is not necessarily simpler or fairer for the assessment of rating and taxing values on farm land. (3) Not applicable. (4) The Valuer General is considering all options in reviewing Section 4 of the Valuation of Land Act 1978 and is happy to meet the Member and discuss in more details the options available, particularly for rural land.
The inclusion of these items is not necessarily simpler or fairer for the assessment of rating and taxing values on farm land. (3) Not applicable. (4) The Valuer General is considering all options in reviewing Section 4 of the Valuation of Land Act 1978 and is happy to meet the Member and discuss in more details the options available, particularly for rural land.
(3) Not applicable. (4) The Valuer General is considering all options in reviewing Section 4 of the Valuation of Land Act 1978 and is happy to meet the Member and discuss in more details the options available, particularly for rural land.
(4) The Valuer General is considering all options in reviewing Section 4 of the Valuation of Land Act 1978 and is happy to meet the Member and discuss in more details the options available, particularly for rural land.

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