Announcement On Valuations Welcome But Illogical

Announcement on Valuations Welcome But Illogical

Media release

9 October 2009

The Property Council has welcomed the Queensland Government's decision to undertake valuations in some local government areas in 2009/10 following its freeze on valuations in 2008/09.

Property Council Queensland Executive Director Steve Greenwood said that it was pleasing that the government had listened to calls from the property industry to undertake valuations but found it difficult to understand how the criteria used to determine which areas would be valued resulted in the 23 local government areas selected.

"The continuing fallout from the global financial crisis has had a significant impact on property values in Queensland," Mr Greenwood said.

"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.

"Whilst we welcome the decision to undertake valuations this year, we find it difficult see how the state came to the decision to select the 23 council areas listed. In particular how the government can justify undertaking valuations in some, but not all south east Queensland council areas.

"Brisbane, Redland and the Gold Coast council areas will be valued in 2009/10, but Logan, the council wedged between these three will not. Similarly Moreton Bay and Somerset councils will be valued but the Sunshine Coast will not.

"This means that within South East Queensland, an area seen as a cohesive region by the State Government in terms of planning under the South East Queensland Regional Plan, will not be addressed collectively.

"The Property Council will be seeking an explanation from government for this anomaly that will clearly create a degree of inequity across the region.

"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, their neighbours in Logan, Ipswich and the Sunshine Coast will be hit hard yet again.

www.propertyoz.com.au

Media enquiries:
Steve Greenwood, Executive Director - (07) 3225 3000 or 0488 721 156


SOURCE: Property Council of Australia