Skelton v Department of Natural Resources and Water

James C Skelton and Jennifer M Skelton appealed against the Chief Executive, Department of Natural Resources and Water regarding the unimproved value of their grazing property known as “Stirling Downs”. The appeal was dismissed by the Land Court of Queensland, affirming the unimproved value of the property at One Million, Nine Hundred and Fifty Thousand Dollars ($1,950,000). The parties agreed that the remaining appeals be determined by confining the evidence to comparisons with the decisions in the selected cases, “Ravensbourne” in the Shire of Blackall and “Minnie Downs” in the Shire of Tambo.

The issues raised by the appeal were whether the unimproved value applied to the property was excessive due to the failure of the Department to take into account and make proper allowance for various matters, or to apply the correct principles of valuation. The appellants argued that the Department had mis-described the country as consisting of all downs and that the Department’s carrying capacity for the downs country was inappropriate given the drought conditions over the last five years. The Department, on the other hand, argued that the classifications of country by the Queensland Parks and Wildlife Service were focused on native flora and fauna, rather than on the capacity of the property to run sheep and cattle.

The Court found that the differences between the classifications of country by the Department and the Queensland Parks and Wildlife Service were largely in terminology. The Court also found that the Department had recognised the lighter carrying capacity of the second category of downs country. Furthermore, the Court found that “Stirling Downs” was superior country to “Minnie Downs” overall, and that the Department had adopted an appropriate sheep area value for “Stirling Downs” of $280. As a result, the Court dismissed the appeal and affirmed the unimproved value of the property at One Million, Nine Hundred and Fifty Thousand Dollars ($1,950,000).