Valuer-General

In reply to the Hon. F. PANGALLO (14 November 2018).

The Hon. R.I. LUCAS (Treasurer): The Minister for Planning has provided the following advice:

1. Not all commercial property owners are requested to provide a land owner return as they are only requested where required. This is done as part of the annual general valuation process. The returns may also be requested as part of resolving an objection to value.

2. In accordance with sections 26, 27 and 28 of the Valuation of Land Act 1971, the Valuer-General may request access to land, access to documents in possession of public authorities and land forms from owners and occupiers. This information is gathered in the strictest of confidence and is an essential part of the Valuer-General delivering accurate valuations.

In particular, land owner returns may request financial information, for the determination of capital value for commercial and industrial properties where the valuation methodology is the capitalisation of income approach. This valuation approach considers the rental levels and rate of return that could be expected to be realised for the property based on market evidence.

Therefore, to assist the Valuer-General to ensure that the assessed capital value is accurate and reflective of current market circumstances, a land owners Return is the land owner or occupier's opportunity to provide an overview of the income associated with the commercial or industrial property they own or occupy, that also ensures the property is not overvalued.

3. No—the Valuer-General is an independent statutory officer who determines statutory valuations for properties in South Australia in accordance with the Valuation of Land Act 1971. The role of the Valuer-General is to deliver accurate and consistent property values for the purpose of fair rating and taxing, as part of a general valuation process undertaken on an annual basis.

Whilst the Valuer-General is responsible for creating the valuation assessments for rating and taxing purposes, the position is independent and as such must exercise an independent judgement. The Valuer-General cannot direct how rating authorities administer their obligations with regards to use of these assessments—that is a matter for the rating authorities that utilise them.

4. To date the current and previous Valuers-General have chosen not to fine property owners for failing to complete a land owner return. To the best of the Deputy Valuer-General's knowledge, no property owner has been fined prior to that.