Later this month, landowners in 25 Queensland local government areas will receive new land valuations.
If you live in an affected area you will have 60 days from the date of issue to check your new valuation and object if you believe it is incorrect.
As land values form the basis for calculating local government rates, leasehold rent, and future freeholding costs – all significant fixed costs for rural property holders – understanding and getting land values correct is vitally important.
Properties affected by the recent Queensland Valuer-General’s announcement fall in: Balonne, Banana, Barcaldine, Barcoo, Blackall-Tambo, Bulloo, Burdekin, Central Highlands, Charters Towers, Cook, Diamantina, Gladstone, Gympie, Isaac, Longreach, Maranoa, Murweh, Paroo, Quilpie, Somerset, Southern Downs, Tablelands, Toowoomba, Western Downs, and Whitsunday.
Statement from AgForce’s valuer, John Moore
The rural property market has continued to be strong over the past 12-18 months. These strong prices will most likely mean that there will be significant increases in our member's Unimproved Values in the local government areas that are being revalued. I advise members to look at their valuations carefully when the new valuations are released and ensure they are correct.
What does this mean for these areas?
When your unimproved valuation rises, if you are leasehold your rents will increase (rent rises are capped at no more than 10 per cent per year). If you own a Grazing Homestead Perpetual Lease and are considering freeholding, you should do so before 1 July 2021, after which your freeholding price will increase.
Depending on how your rates are struck, an increase in unimproved value may also result in higher rates as this is usually the basis of determining council rates.
What are unimproved values?
Unimproved value is the value of your land in its natural, undisturbed condition, recognizing potential. It is the amount for which rural land could be expected to sell for, without physical improvements such as structures, fences, clearing, yards and water.
How are they determined?
Unimproved values are done by mass appraisal, meaning that your property is not individually valued each time new valuations are issued. Rather, key sales are analysed in market areas, improvements are valued and the value of these are deducted from the sale price resulting in a new Unimproved value for the sale. (Sale Price – Value of Improvements = Unimproved value).
The new unimproved values from these sales are compared to others in the area and will show market trends of the unimproved valuations since the last shire revelation occurred. The department will then draw conclusions from this sale evidence and apply these changes in unimproved values in the area.
We encourage members to look at your unimproved values and ensure they are correct. If your value is incorrect or too high compared to other properties in the area, it could mean that your unimproved value is wrong, meaning the amount of rates and rent you would potentially pay are incorrect. Contesting this value could result in large savings in your rates and rent if you believe your unimproved value is too high.
Support for AgForce members
AgForce will be running two Zoom conference calls to talk through these issues and provide more details for those wanting to have a conversation.
Our GIS mapping team will also be providing support by issuing a property specific GeoPDF in the coming weeks.
Your Regional Manager is also available to discuss your situation and where necessary put you in contact with the right person for further support or advice.
In the meantime, however, you can access this 2021 land valuation fact sheet.
We will also provide regular updates in our member e-newsletter Action, as we go through these land valuation reviews. AgForce will remain in close contact with the Valuer-General throughout this exercise and ensure the voice of members is heard in their deliberations.
If you have any questions, please contact the Office of the Executive Director, State Valuation Service on telephone 3199 7770.
You can also contact AgForce Rural Property Valuer, John Moore 0428 996 617 or firstname.lastname@example.org, or AgForce directly (07) 3236 3100 or email@example.com for further support and information.