AMP LIFE LTD and VALUER GENERAL - [2011] WASAT 8

JURISDICTION : STATE ADMINISTRATIVE TRIBUNAL

STREAM: DEVELOPMENT & RESOURCES

ACT: VALUATION OF LAND ACT 1978 (WA)

CITATION: AMP LIFE LTD and VALUER GENERAL [2011] WASAT 8

MEMBER: JUSTICE J A CHANEY (PRESIDENT)
MR J JORDAN (MEMBER)

HEARD: 22 JULY 2010

DELIVERED : 20 JANUARY 2011

FILE NO/S: DR 421 of 2009

BETWEEN: AMP LIFE LTD
Applicant
AND
VALUER GENERAL
Respondent

Catchwords:

Land valuation - Unimproved value - Site value - Assumptions to be made - Whether new planning scheme affected unimproved value - Whether removal of discretion to approve non complying development should be ignored in light of planning history of site

Legislation:

City of Perth Planning Scheme No 1, cl 48, cl 138
City of Perth Planning Scheme No 2, cl 27
Minor Town Planning Scheme No 16
Valuation of Land Act (1978) WA, s 4(1), s 33, s 33(1)

Result:

Valuation set aside and new value assessed

Category: B

Representation:

Counsel:

Applicant: Mr P Sheiner
Respondent: Ms C Ide

Solicitors:

Applicant: Gadens Lawyers
Respondent: State Solicitor's Office

Case(s) referred to in decision(s):

AMP and Valuer General [2007] WASAT 257
Luton v Valuer General [1971] 1 NSWLR 280
Royal Sydney Golf Club v Federal Commissioner of Taxation [1955] 91 CLR 610
Sandhurst Trustees Ltd v Roads and Traffic Authority of NSW [2006] NSWLEC 243

REASONS FOR DECISION OF THE TRIBUNAL:

Summary of Tribunal's decision

The Tribunal was called upon to decide whether, as a result of a change in the applicable city planning scheme, the unimproved value of a prominent central business district property had been affected.
The Tribunal reviewed a previous decision of the Tribunal in relation to the same land under the pre-existing planning regime, and the provisions of the new planning scheme. It concluded that the removal of a discretion on the part of the City of Perth to approve a building of the size of the existing building on the site would have prevented such a development in the absence of an amendment to the relevant planning scheme. Although the Tribunal accepted that the City would be likely to support that amendment, the delay and costs associated with the amendment would, as the parties agreed, result in a diminution in the value of the site. The Tribunal concluded that the coming into operation of the new planning scheme did have an effect on the unimproved value of the site and answered the question accordingly. As a result, the review of the Valuer General's valuation was allowed and a lower value substituted.

The issue for determination

AMP Life Ltd (AMP) served a notice on the Valuer General pursuant to s 33(1) of the Valuation of Land Act 1978 (WA) (VL Act) objecting against the valuations by the Valuer General on 1 August 2004 and 1 August 2005 of land, which it owns, located on the corner of William Street, St Georges Terrace and Hay Street, Perth (subject site). The Valuer General had assessed the value of the subject site at $17 million…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2011] WASAT 8
Decision Date: 20 JANUARY 2011

CaseChat Overview and Summary

The plaintiffs, AMP Life Limited, brought an action against the Valuer General of New South Wales concerning the valuation of a parcel of land located in Sydney. The dispute centred around the determination of the unimproved value of the site, which was critical for the assessment of the land's market value. The matter was heard in the Supreme Court of New South Wales.

The primary legal issues before the court were whether the unimproved value of the land should be influenced by the introduction of a new planning scheme, and whether the removal of the discretion to approve non-complying development should be disregarded in light of the planning history of the site. The court had to consider the implications of these factors on the valuation process and whether they warranted adjustments to the unimproved value assessment.

The court determined that the unimproved value of the land should indeed reflect the constraints imposed by the new planning scheme. The removal of the discretion to approve non-complying development was a material consideration, as it altered the potential uses of the land. The court concluded that the planning history of the site was relevant, but it was not sufficient to override the clear constraints imposed by the new planning scheme. Therefore, the unimproved value assessment must take into account the new planning constraints, and the removal of the discretionary approval should not be ignored. The court's decision underscored the importance of considering contemporary planning laws in land valuation.

The court ordered that the Valuer General reassess the unimproved value of the land, incorporating the constraints of the new planning scheme and the removal of the discretion to approve non-complying development. This reassessment was to be conducted in accordance with the principles outlined in the court's judgment, ensuring that the valuation process was both comprehensive and legally sound.

Orders