Ogg v Department of Natural Resources and Water
[2008] QLC 160
•12 August 2008
LAND COURT OF QUEENSLAND
CITATION:Ogg v Department of Natural Resources and Water [2008] QLC 0160
PARTIES:Peter G Ogg and Sally Ogg
(appellants)
v
Chief Executive, Department of Natural Resources and Water
(respondent)
FILE NO:RV2006/0296
DIVISION:Land Court of Queensland – General Division
PROCEEDING: An appeal against a rental valuation
DELIVERED ON: 12 August 2008
DELIVERED AT: Brisbane
HEARD AT:Winton
MEMBER:Mr JJ Trickett
ORDER:The appeal is allowed, the valuation of the Chief Executive is set aside and the unimproved value of the “Talkara” Permit to Occupy for rental purposes as at 1 October 2005 is determined at Forty-three Thousand Dollars ($43,000).
CATCHWORDS: Unimproved value – Permit to Occupy over stock route – grazing property in Winton Shire – relativity with valuations of adjoining parcels – increment in value for size – disabilities of the land – compulsion value – Valuation of Land Act 1944
APPEARANCES: Mr A Boyd, agent, for the appellants
Mr W Isdale, Executive Legal Consultant, Crown Law, for the respondent
This is an appeal by landowners in the Shire of Winton against the unimproved value applied to their land by the Chief Executive, Department of Natural Resources and Water (the Department) as at 1 October 2005 under the provisions of the Valuation of Land Act 1944 (the Act).
Background
The Ogg family are the owners of an aggregation of three properties, “Ayrshire Downs”, “Talkara” and “McKenzie”. Separate appeals have been lodged against the valuations of each of the three properties. The valuation of “Ayrshire Downs” was determined by consent at $1,157,000, or $84.11/ha. Following the hearings of the other two appeals, the valuation of “Talkara” was determined at $985,000, or $87.59/ha,[1] while the valuation of “McKenzie” was determined at $1,050,000, or $80.40/ha.[2]
[1] Ogg v Department of Natural Resources and Water [2008] QLC 157.
[2] Ogg v Department of Natural Resources and Water [2008] QLC 158.
The subject appeal is in respect of a Permit to Occupy comprising 492 ha, over a narrow strip of the Winton-Cloncurry Stock Route extending along the south-western boundary of “Talkara”. Immediately to the west but fenced from it, is the bitumen sealed Winton-Cloncurry Road.
As at 1 October 2005, the Department applied an unimproved value of $64,000, or $130.08/ha, to that parcel of land. The owners appealed against that valuation, advising that their estimate of the unimproved value is $250. Their grounds of appeal are similar to the grounds of their appeals against the valuations of “Talkara” and “Mckenzie” and need not be repeated here.
The Evidence
Mr PG Ogg gave evidence on behalf of the appellants, while registered valuer, Mr DA Routh, gave evidence on behalf of the Department. They were generally in agreement about the type of country on the Permit to Occupy, which essentially comprises downs country of which, according to Mr Ogg, about 25% is stony pebbly country and which also includes a small area of creek channels.
The only issue in this case relates to the unimproved value per ha applied to the land. Mr Ogg sees its highest and best use as a small adjunct to the 11,246 ha “Talkara”. He contends it should have a similar unimproved value per ha. Mr Ogg dismisses the suggestion that anyone other than the adjoining owners would be interested in purchasing the property. He could not imagine that there would be any demand by anyone else for such a small parcel, situated 50 km from Winton, with no water and which would carry, at best 250 sheep. It would, he thought, have no attraction as a rural home site in that environment.
On the other hand, Mr Routh was of the opinion that a parcel of land of nearly 500 ha, situated only three-quarters of an hour by bitumen road from Winton, would be of interest to potential purchasers. In his opinion, it should have a higher value per ha than the adjoining larger parcel. It is smaller than the “Ayrshire Downs” Permit to Occupy, is of more regular shape and does not suffer from the severance by a fenced bitumen road.
Mr Routh’s valuation of the Permit to Occupy was $64,000, or $130.08/ha. However, he has since inspected the area and now leads evidence to a revised valuation of $60,000, or $121.95/ha.
Conclusion
This small Permit to Occupy was valued together with the much larger freehold component of “Talkara”, for rating purposes as a property of 11,246 ha. I have determined the unimproved value of that property at $985,000 or $87.59/ha.[3]
[3] [2008] QLC 0157.
The provisions of the Act require that this small parcel of land the subject of the Permit to Occupy, be valued as a separate parcel for rental purposes. The valuation must be made as if this small parcel of 492 ha was held separately.
After considering the evidence, I have come to the conclusion that the highest and best use of the land is as an adjunct to “Talkara”. Mr Routh was unable to produce any evidence of a higher and better use for such a small parcel of land situated on a stock route 50 km north-west of Winton, in the middle of the Ogg family’s aggregation. He suggested that it might be of interest to a neighbour or, as a last resort, that the Ogg family may be prepared to pay a higher value simply to keep someone else from holding the land.
I got the impression from Mr Ogg that the parcel is not much use to them, but if they did not hold it, someone else might. However, I reject any suggestion that the land may have a higher value because the owners would pay a premium simply to exclude someone else from holding land within their aggregation. Any such enhanced value would have an element of compulsion about it and would not be in accordance with the High Court’s test of market value in Spencer v The Commonwealth.[4]
[4] (1907) 5 CLR 418.
Therefore, in my opinion, the unimproved value of the 492 ha Permit to Occupy should be at the same rate of $87.59/ha as I determined for the parent property, “Talkara”. That amounts to a rounded unimproved value of $43,000.
Order
The appeal is allowed, the valuation of the Chief Executive is set aside and the unimproved value of the “Talkara” Permit to Occupy for rental purposes as at 1 October 2005 is determined at Forty Three Thousand Dollars ($43,000).
JJ TRICKETT
MEMBER OF THE LAND COURT
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