Franklin General (ACT) Pty Ltd ACN 612 950 204 v Commissioner for Act Revenue (Administrative Review)

Franklin General (ACT) Pty Ltd, a company engaged in property development, sought to challenge the assessment of its unimproved value of a childcare centre site made by the Commissioner for ACT Revenue. The case was reviewed by the Administrative Appeals Tribunal (AAT), which needed to determine the appropriateness of the Commissioner's method of assessing the unimproved value of the property. The company argued that the assessment did not accurately reflect the property's potential and proposed alternative methods.

The key legal issue before the Tribunal was whether the Commissioner's assessment of the unimproved value of the childcare centre property was legally sound. This involved examining the methods used by the Commissioner, including the rate/childcare place method and the deduction of hypothetical development method. The Tribunal also needed to consider whether the Commissioner's approach was consistent with the highest and best use of the property and whether the assessment was fair and reasonable.

The Tribunal found that the Commissioner's method of assessing the unimproved value of the property was legally sound. It concluded that the rate/childcare place method and the deduction of hypothetical development method were appropriate given the circumstances. The Tribunal rejected the company's argument that a basket of sales or lay opinion should have been used, finding that these methods were not suitable for this particular property. The Tribunal also determined that the Commissioner's assessment did not cause undue hardship to the company. Therefore, the Tribunal confirmed the decision under review, upholding the Commissioner's assessment of the unimproved value of the property.