Keshan and Repatriation Commission (Veterans' entitlements)

This matter concerned an appeal by the applicant, Keshan, against a decision of the Repatriation Commission regarding the valuation of her property in Kangaroo Valley. The dispute centred on whether the property's valuation, which impacted her income support supplement, adequately accounted for its flood-prone nature and existing development controls. The case was heard by Emeritus Professor P A Fairall, Senior Member.

The primary legal issue before the Tribunal was to determine the correct net market value of the applicant's property as at 1 July 2018. This required the Tribunal to consider competing valuation reports and evidence, particularly concerning the detrimental impact of flooding on the property's value, and whether any adjustments were necessary to reflect this.

The Tribunal considered the evidence of Mr Zweep, a certified practising valuer, who provided a detailed report and oral testimony. Mr Zweep described the property's unique vulnerability to flooding due to its location between Myrtle Creek and the Kangaroo River, noting significant erosion and evidence of past inundation, including flood marks on the house. He compared the subject property to comparable sales, specifically highlighting the lower value of flood-prone properties like 29 Cullen Crescent compared to flood-free properties such as 14 Cullen Crescent. Mr Zweep concluded that the potential for severe flooding, evidenced by flood marks and accumulated detritus, significantly impacted the property's marketability and value, a factor he believed had been overlooked in previous valuations. The Tribunal accepted Mr Zweep's assessment, finding that the detrimental effect of flooding on the property's value had not been adequately considered.

The Tribunal found that the net market value of the property, as at 1 July 2018, was $593,750. Consequently, the reviewable decision was set aside, and the matter was remitted to the Repatriation Commission for redetermination of the applicant's income support supplement based on this revised valuation.