Terry v Department of Natural Resources and Water

The Land Court of Queensland heard appeals from Gregory Ross Terry and Belinda Mary Terry against the Chief Executive of the Department of Natural Resources and Water regarding the valuation of their grazing property, "Lerida," for rating and rental purposes. The Department had assessed the property's unimproved value at $1,600,000 for both purposes as of 1 October 2005. The Terrys contested the valuation, arguing it was excessive, and appealed under the Valuation of Land Act 1944. The court's primary task was to determine if the Department's valuation was justified or if it should be adjusted based on the evidence provided by the parties.

The court examined several issues, including the appropriate methodology for determining the unimproved value of grazing land, the relevance of carrying capacity and sheep area values, and the impact of property location and country classification on valuation. The court noted that while the Department had adjusted the carrying capacities of comparable properties arbitrarily, there was no significant difference in the carrying capacities of properties in the immediate area, making such adjustments misleading. The court decided to compare the properties directly rather than relying on adjusted carrying capacities. The court also considered the gradual improvement in land quality from west to east, but concluded that the valuation should not reflect a steep increase due to the property's location.

After considering the evidence, the court found that the Department's valuation of $1,600,000 was excessive. The court determined the unimproved value of "Lerida" to be $1,454,000 for both rating and rental purposes, based on a comparison with the valuation of an adjacent property, "Eskdale," and the gradual improvement in land quality from west to east. The court set aside the Department's valuation and determined the unimproved value at $1,454,000 for both rating and rental purposes. The court's decision was based on the direct comparison of properties and the recognition that the arbitrary adjustments to carrying capacities did not accurately reflect the true value of the land.