Concerns Raised Over Land Valuation System as Billions Lost

The NSW government is raising concerns over the current land valuation system used in determining land tax rates and acquisitions, after having studied figures compiled thru the NSW Value General showing discrepancies over land and property values in the last decade.

The properties in question are located at some of Australia’s most affluent sectors—Wunulla Road and Wolseley Road, as well as the Sydney Opera House Car Park.

The figures also showed that there had been some 170 cases or appeals in court, initiated or contested by the landowners. These properties, which are both private and commercial estates, have been devalued by billions of dollars for the purpose of taxes and ratings.

One of the owners of these properties is Alan Rydge, who is the chairman of Amalgamated Holdings Limited. Mr. Rydge filed an appeal through the Land and Environment Court in 2010 bringing its $17.5 million property value down to $9.5 million.

The apartment block located at Wolseley Road has been reduced to $4.5 million, from $11.7 million, when its owners also filed an appeal.

The Opera House Car Park was said to be valued at $20 million, but following a court appeal, the property now stands at $8.9 million, as of 2004.

One of the biggest discrepancies is the Camdem Valley Golf property, which was initially valued at $68.5 million. This site, which has rugby league executives as its directors, is currently rated at $6 million only.

In a recent committee hearing, Value General Philip Western defends that land valuation is not to be seen as an exact science. But committee chairman Matt Kean said that the Value General has to answer more questions as there is a noticeable failure in the system and the worry is that this may be even bigger than the initial figures.

Based on the records compiled, there is a total discrepancy of valuations amounting to about $1.6 billion.

Tagged NSW Government