Sollazzo and Secretary, Department of Social Services (Social services second review)

This matter concerned an appeal by Mr. Sollazzo against a decision by the Secretary of the Department of Social Services regarding the valuation of a property for the purposes of assessing his age pension. The central dispute revolved around the appropriate valuation of a dilapidated, uninhabitable house, and whether the valuations used by the Department fairly compared the property to comparable sales in the market. The decision was made by Deputy President Damien O’Donovan.

The legal issues before the Tribunal were to determine the fair market value of the "Page Property" at specific points in time, considering its uninhabitable state and the lack of directly comparable properties in similar condition. The Tribunal was required to assess the relevance of the cost of making the house habitable when comparing it to other properties on the market, and to determine whether the valuations presented by both parties adequately accounted for the necessary expenditure to bring the property to a comparable standard.

Deputy President O’Donovan noted that the Valuations ACT valuer, who had indicated availability for cross-examination, did not attend the hearing, leading to his report being given less weight. The Tribunal acknowledged the difficulty in valuing the property due to its uninhabitable condition, the absence of comparable sales of properties in similar disrepair, and a strong sellers' market at the relevant times. The Tribunal applied the principle that the cost of making the property habitable is a relevant factor in determining its market value, as potential purchasers would compare it to other habitable properties. While the applicants' allowance for renovation costs was deemed excessive, the Tribunal found the respondent's allowances inadequate. The Tribunal determined a more realistic range for renovation costs and, by substituting these adjusted figures into the valuation framework, set the July 2022 valuation at $657,000 and the December 2021 valuation at $585,000.