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Legislative Council - Fifty-Fourth Parliament, Second Session (54-2)
2021-10-12 Daily Xml
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Land Tax

In reply to the Hon. J.A. DARLEY (8 September 2021).

The Hon. R.I. LUCAS (Treasurer): The Attorney-General has advised:

The Valuer-General determines the average percentage change in site values in accordance with section 8A(4)(a), (b) and (c) of the Land Tax Act 1936. Land Tax Act 1936 section 8A:

(4) For the purposes of subsections (2a), (3) and (3b), the average percentage change in site values for a particular financial year will be determined by the Valuer-General after the application of the following principles:

(a) in determining the average percentage change in site values for the financial year, the Valuer-General will take into account changes in the site value of land according to valuations applying under the Valuation of Land Act 1971 with respect to a period of 12 months expiring on a date to be determined by the Valuer-General, being a date that falls on or before 30 June in the financial year immediately preceding the relevant financial year;

(b) the average percentage change in site values must take into account changes in the site value of residential land and changes in the site value of other land (as identified by the Valuer-General), with the averaging being undertaken in accordance with a method determined to be appropriate by the Valuer-General after taking into account the provisions of this act and the Valuation of Land Act 1971;

(c) for the purposes of paragraphs (a) and (b)—

(i) vacant land zoned for residential purposes will be treated as residential land and vacant land zoned for any other purpose (other than primary production) will be treated as other land; and

(ii) land used for primary production must be excluded.

Properties are revalued annually by the Valuer-General with a date of valuation of 1 January each year. The latest calculation of the average percentage change in site values of 7 per cent therefore considered the movement of values determined as at 1 January 2020 to those determined as at 1 January 2021.

The Hon. John Darley MLC makes reference to Core Logic figures. It is believed that the figures quoted are from the Core Logic publication, Hedonic Home Value Index, released on 1 September 2021. This publication shows index results as at 31 August 2021 and considers only residential properties.

Capitals
Sydney Melbourne Brisbane Adelaide
All Dwellings
Month 1.8% 1.2% 2.0% 1.9%
Quarter 6.4% 4.0% 6.1% 5.3%
YTD 19.8% 12.4% 15.3% 12.8%
Annual 20.9% 13.1% 18.3% 17.9%
Total return 23.8% 16.0% 23.1% 22.7%
Gross yield 2.5% 2.8% 4.0% 4.1%
Median value $1,039,514 $769,968 $612,377 $522,180


Core Logic, Hedonic Home Value Index, 1 September 2021.

An extract from the report shows that the home value index for dwellings indicated a 17.9 per cent increase in the last 12 months (1 Sep 2020 to 31 Aug 2021) and a 5.3 per cent increase in the last three months (1 Jun 2021 to 31 Aug 2021). It is also noted that those percentages relate to improved properties, not site values as is required by the Land Tax Act 1936.

The latest Core Logic figures have a time frame for the annual movement that does not match that used by the Valuer-General in determining the site values for the purposes of section 8A of the Land Tax Act 1936.

Based on this advice, the Premier is satisfied that DEW followed the correct process prior to commencing work at the car park site.

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