Commonwealth Custodial Services Ltd v Valuer General

Commonwealth Custodial Services Ltd (the taxpayer) appealed to the Court of Appeal of New South Wales against a decision of the Valuer General concerning the valuation of land it owned. The dispute centred on how heritage restrictions affecting the land should be taken into account when determining its unimproved capital value for the purposes of land tax.

The primary legal issue before the Court of Appeal was the proper interpretation of sections 6A and 14G of the *Valuation of Land Act 1916* (NSW) in the context of valuing land subject to heritage restrictions. Specifically, the Court had to determine whether the Valuer General was entitled to disregard the impact of these restrictions when assessing the unimproved capital value of the land, or if the restrictions were a factor that must be considered in the valuation process.

The Court of Appeal, applying the mischief rule of statutory interpretation, found that the *Valuation of Land Act* intended for heritage restrictions to be considered in the valuation of land. Spigelman CJ, with whom Santow JA and Tobias JA agreed, reasoned that the purpose of the Act was to value land as it exists, including any encumbrances or restrictions that affect its use and value. The Court held that the Valuer General had erred in failing to account for the heritage restrictions when determining the unimproved capital value.

Consequently, the appeal was dismissed, and the taxpayer was ordered to pay the costs of the Valuer General.