Perilya Broken Hill Ltd v Valuer-General

Perilya Broken Hill Ltd appealed to the Court of Appeal of New South Wales against a decision of the primary judge concerning the valuation of certain land for the purposes of land tax. The dispute centred on how the value of the land, which included mining tenements, should be assessed, particularly in light of the Crown's reservation of minerals.

The Court of Appeal was required to determine two principal legal issues. Firstly, whether the primary judge erred in refusing the appellant's late application to adduce further evidence. Secondly, and more significantly, the Court had to decide whether, in valuing the hypothetical fee simple of the land, the valuation should proceed on the assumption that the minerals were privately owned, notwithstanding the Crown's reservation. This involved considering the precedential authority of decisions concerning the construction of identical words in different statutes and the weight to be given to decisions of the Privy Council.

The Court of Appeal held that the primary judge had not erred in refusing the late application to adduce evidence, finding no error of law. Regarding the valuation issue, the Court applied the principles established in *Royal Sydney Golf Club v Federal Commissioner of Taxation* and *Gollan v Randwick Municipal Council*. It reasoned that when valuing a hypothetical fee simple, any reservations of minerals to the Crown should be ignored. The Court distinguished between laws of general application and qualifications upon a particular grant, concluding that for the purpose of determining the value of the hypothetical fee simple, the land should be valued as if the minerals were privately owned.

The appeal was dismissed, and Perilya Broken Hill Ltd was ordered to pay the costs of the appeal.