On 23 August 2023, the Land Valuation Amendment Bill 2023 (Qld) (the Bill) was introduced to Queensland Parliament, proposing various amendments to the Land Valuation Act 2010 (Qld) (Land Valuation Act), aiming to enhance the administration and operation of the statutory land valuation framework in the state. Amidst the backdrop of renewables, carbon farming, and other emerging land uses, the changes are designed to ensure the valuation framework is responsive to an evolving property market.
In this insight, we explore the key amendments introduced by the Bill, and the potential implications for landowners, local governments, and Queensland’s property market. Specifically, we examine how these revisions align valuations with contemporary realities such as renewable energy projects, carbon-related initiatives, and shifting land use patterns, particularly in rural land.
Key Changes Introduced by the Bill
The Bill introduces various amendments to the Land Valuation Act:
1. Statutory Guidelines by the Valuer-General: The Bill empowers the Valuer-General to make binding statutory guidelines for use by registered valuers, ensuring a consistent approach is applied in the preparation of statutory land valuations. Once developed, these guidelines will be published and tabled in parliament, contributing to transparency and accountability in the valuation process.
The rationale for such guidelines appears to relate primarily to the valuation of complex land uses, with a particular focus on the evolving rural property market as we see an increase in traditional farming uses coexisting with carbon farming, solar farms and gas and mineral extraction uses.
The Bill further introduces the option for landholders to combine or separate certain types of land for valuation purposes based on land use and occupation, which can provide greater flexibility to the landowner for future land use planning and diversification.
For example, some landowners may choose not to combine non-adjoining farm lots or parcels to accommodate succession planning or when diversifying land use, as combining these lots may not accurately represent the predominant use of the property or align with their future plans. This change will streamline the valuation process by allowing rural landowners to make decisions about how their land is valued, aligning with their specific land use plans.
Regularly reviewed and updated guidelines will ensure the land valuation framework remains current and relevant in a dynamic property environment, with consistent valuation practices applied to those evolving sectors.
2. Removal of Valuation Threshold for Objection Conferences: The Bill eliminates the existing requirement for the Valuer-General to offer an independently chaired objection conference to an objector when a site value exceeds the prescribed amount of $5,000,000.
This amendment will give the option for all objectors to participate in an independently chaired objection conference, including objectors with valuations that are less than the previous prescribed amount. The increase in access to objection conferences will benefit landowners where sites that are valued less than $5,000,000 include complexities such as the availability of comparable sales evidence and unique property-specific attributes.
The Bill also expands the Valuer-General’s powers to serve an information notice on all objectors, rather than just objectors with a valuation exceeding the prescribed amount, to ensure all relevant information is available when deciding an objection. The changes aim to streamline the objection process, offering more opportunities for resolving objections before reaching the Land Court.
Where circumstances do not require an objection conference, the Valuer-General can continue to offer an informal conference to the landowner. Objectors will maintain their appeal rights and if the matter is not resolved, they may appeal to the Land Court.
3. Expanded Disclosure Requirements: The Bill expands disclosure requirements for parties involved in an objection conference before its commencement to ensure greater transparency and information sharing. The changes will also allow the independent chairperson to serve an information notice on all objectors and their agents or representatives to disclose any relevant material that may assist in deciding an objection, prior to, and during, an objection conference.
The expanded disclosure requirements are aimed to encourage the parties to engage in good faith by providing all relevant information to facilitate the resolution of the objection and deter the commencement of Land Court proceedings.
Rationale Behind the Proposed Amendments
The Queensland property market has evolved significantly since the Land Valuation Act's commencement in 2010. The proposed changes recognise the need for updated processes and guidelines to account for the complexities arising from mixed-use, volumetric, and transport-oriented developments. The Bill aims to create a practical framework that not only assists valuers in accurately assessing land values but also streamlines the objections process, ultimately reducing the number of matters proceeding to the Land Court.
Importantly, the amendments specifically target complex property valuations, exemplifying Queensland's commitment to keeping pace with property sector reforms driven by changing land uses. This commitment extends to rural areas that have been influenced by renewables and carbon-related initiatives. By empowering the Valuer-General to establish statutory guidelines and by granting landowners the ability to influence how their land is valued, the amendments will ensure that the statutory valuation framework remains current and relevant in a dynamic property environment.
Next Steps
Submissions in response to the proposed Land Valuation Act amendments close 22 September 2023. The Bill has been referred to the Transport and Resources Committee for report by 24 November 2023.
Landowners, local governments, and property industry professionals should stay informed about these changes and consider providing feedback to shape the future of land valuation in Queensland.
