Terry v Department of Natural Resources and Water
[2008] QLC 111
•30 May 2008
LAND COURT OF QUEENSLAND
CITATION:Terry v Department of Natural Resources and Water [2008] QLC 0111
PARTIES:Gregory Ross Terry and Belinda Mary Terry
(appellants)
v
Chief Executive, Department of Natural Resources and Water
(respondent)
FILE NOS:AV2006/0177 and RV2006/0178
DIVISION:Land Court of Queensland – General Division
PROCEEDINGS: Appeals against revenue valuations for rating and rental purposes
DELIVERED ON: 30 May 2008
DELIVERED AT: Brisbane
HEARD AT:Winton
MEMBER:Mr JJ Trickett, President
ORDERS:1. In appeal AV2006/0177, the appeal is allowed, the valuation of the Chief Executive is set aside and the unimproved value of “Lerida” for rating purposes as at 1 October 2005 is determined at One Million, Four Hundred and Fifty-four Thousand Dollars ($1,454,000).
2.In appeal RV2006/0178, the appeal is allowed, the valuation of the Chief Executive is set aside and the unimproved value of “Lerida” for rental purposes as at 1 October 2005 is determined at One Million, Four Hundred and Fifty-four Thousand Dollars ($1,454,000).
CATCHWORDS: Unimproved value – grazing property at Winton – comparisons with determinations of selected cases – sales relied upon in the selected cases – classification of country – carrying capacity – sheep area values – disabilities – Valuation of Land Act 1944
APPEARANCES: Mr A Boyd, agent, for the appellants
Mr W Isdale, Executive Legal Consultant, Crown Law, for the respondent
These are appeals by landowners in the Shire of Winton against the unimproved values applied to their land for rating and rental purposes by the Chief Executive, Department of Natural Resources and Water (the Department) under the provisions of the Valuation of Land Act 1944 (the Act).
Background
Mr and Mrs Terry are the owners of a grazing property known as “Lerida”, containing an area of 12,375.3 ha, situated approximately 140 km north-east of Winton on the Olio-Muttaburra Road. As at 1 October 2005, the respondent applied an unimproved value of $1,600,000, or $129.29/ha, to that property for rating purposes. The property is held under leasehold tenure. The provisions of the Act require that a separate valuation is made of leasehold land for rental purposes. Therefore, the Department issued a separate valuation of “Lerida” for rental purposes at the same amount of $1,600,000.
The appeals were lodged on behalf of the owners by their agent, Mr A Boyd. The grounds of appeal are wide-ranging but general in nature, essentially contending that the unimproved value is excessive because of the failure by the Department to take into account and make proper allowance for various matters, or to apply the correct principles of valuation.
These were among a number of cases tried by the fast-track process, following the determination of selected cases “Bonnie Downs”[1] and “Belmont”[2] in the Shire of Winton. The parties agreed that the remaining appeals be determined by confining the evidence to comparisons with the decisions in those cases and to the sales relied upon in arriving at those determinations. However, evidence of the differences between individual properties was also heard.
[1] Fawckner v Department of Natural Resources and Water [2008] QLC 0036.
[2] Elliott v Department of Natural Resources and Water [2008] QLC 0040.
The evidence for the appellants
Mr GR Terry gave evidence on behalf of the appellants. He described “Lerida” as sparsely shaded black soil downs country, with two small creeks running through the property. The downs country is typical of the area and has shale ridges.
In Mr Terry’s opinion “Lerida” is similar to the adjoining property “Eskdale” and is in the same run of country as the selected case, “Bonnie Downs”, which was determined by the Land Court at $110/ha. Mr Terry was aware that the Department had extended the carrying capacity of “Bonnie Downs” to 1 sheep to 1.7 ha, while leaving the carrying capacity of “Lerida” at 1 sheep to 1.6 ha. In Mr Terry’s opinion, both properties would have the same carrying capacity. Mr Terry therefore felt that the valuation of “Lerida” at $129.29/ha was excessive compared with the Court’s determination of the value of the “Bonnie Downs” aggregation at $110/ha.
The evidence for the Department
Evidence for the Department was given by registered valuer, Mr DA Routh, who explained that in assessing the various properties in the area he had relied upon the Department’s historical records, with assistance from the WARLUS land system mapping, regional eco-system mapping and satellite imagery. From those sources he had classified the country on “Lerida” as:
11,110 ha (90%) downs (1-1.6 ha)
1,265.3 ha (10%) channels (1-1.6 ha)
Mr Routh described “Lerida” as follows:
“’Lerida’ is described as generally well grassed black soil downs, pebbly in places with small areas tending loose and more lightly grassed. Areas of claypan along Lords Creek. Generally open to lightly shaded with Coolibah along creeks.”
Although conceding that “Lerida” is further from Winton than the selected cases of “Bonnie Downs” and “Belmont”, Mr Routh pointed out that it is situated somewhat further to the east. It was well recognised, he contended, that the quality of the country improves from west to east towards Aramac.
In defending the valuation of $129.29/ha applied to “Lerida”, Mr Routh referred to the selected cases “Bonnie Downs”, containing an area of 26,080 ha, which the Court had determined at $110/ha, and to the selected case “Belmont”, with an area of 18,318 ha, which the Court had determined at $105/ha. However, in his opinion “Lerida” is most aligned to the sale property “Dahlia”. “Dahlia” has an area of 13,327 ha and is situated three properties removed to the west of “Lerida”. As at 1 October 2005, the Department applied an unimproved value of $112.55/ha to “Dahlia”. It was the key sale for the determination of the selected cases. “Lerida” is located to the east of “Eskdale”, which is adjacent to “Corunna”. In Mr Routh’s opinion, it is in a similar run of country to those properties and the selected cases. He assessed the carrying capacity of “Dahlia” at 1 sheep to 1.6 ha, or 7,735 sheep.
The issues
The principal issue in this case is that the appellants cannot understand how their property “Lerida”, which the Department concedes is in the same run of country as the selected cases and the sale property “Dahlia”, can be valued so much higher at $129.29/ha. For reasons which I explained in the determination of the unimproved value of the “Bonnie Downs” aggregation,[3] in my opinion any comparison based on carrying capacities with “Dahlia” and “Bonnie Downs” and other similar properties in the area is misleading. The Department had “let out” the traditional carrying capacity of “Dahlia” from 1 sheep to 1.6 ha to 1 sheep to 1.8 ha. It had similarly “let out” the carrying capacity of the “Bonnie Downs” aggregation from 1 sheep to 1.6 ha to 1 sheep 1.7 ha. As I pointed out in that decision, the arbitrary revision of traditional carrying capacities on an ad hoc basis has affected any comparison that could be made of carrying capacities or sheep areas.
[3] [2008] QLC 0036 at [85] to [87].
The evidence in these cases is compelling that there is virtually no difference in the carrying capacities of the properties in the immediate area. Therefore, as with the “Bonnie Downs” aggregation, I propose to put aside carrying capacities or sheep areas and make comparisons on a direct comparison basis.
Since the hearings in Winton, on 12 May 2008, I have determined the appeal against the unimproved value of “Eskdale”, the property immediately adjacent to the west of “Lerida”, at $117.50/ha. I accept Mr Terry’s opinion that the country on “Lerida” is very similar to the country on “Eskdale” immediately to the west.
Mr Routh has given evidence that the country generally improves from Winton towards Aramac, that is from west to east. The evidence in this and other cases supports Mr Routh’s opinion. Mr Terry concedes that there is not much loose country on “Lerida”. Previous valuations by the Department indicate that values were increased gradually from west to east. While I accept that values should be merged to reflect that improvement from west to east, there is no evidence to indicate that there should be more than a gradual merge. In the circumstances, I intend to apply an unimproved value of $119/ha to “Lerida”, compared with the $117.50/ha determined for “Eskdale”. Therefore, the unimproved value of the 12,375.3 ha property will be determined, when rounded, at $1,454,000.
Orders
1.In appeal AV2006/0177, the appeal is allowed, the valuation of the Chief Executive is set aside and the unimproved value of “Lerida” for rating purposes as at 1 October 2005 is determined at One Million, Four Hundred and Fifty-four Thousand Dollars ($1,454,000).
2.In appeal RV2006/0178, the appeal is allowed, the valuation of the Chief Executive is set aside and the unimproved value of “Lerida” for rental purposes as at 1 October 2005 is determined at One Million, Four Hundred and Fifty-four Thousand Dollars ($1,454,000).
JJ TRICKETT
PRESIDENT OF THE LAND COURT
0
0
0