The Valuer-General v Queensland Club

The Valuer-General of Queensland appealed against a decision of the Land Court which fixed the unimproved value of land owned by the respondent, Queensland Club, located on the corner of Alice and George Streets, Brisbane, for rating and taxing purposes. The Valuer-General valued the land at $4.4 million, while the Land Court determined its value at $2,435,000, both as of 31st March 1989. The land, with an area of 3,990 square metres, is improved and houses the Queensland Club, a heritage building under the Town Plan for the City of Brisbane. The primary legal issue was whether the restrictions on the land's use, imposed due to its heritage status, should be considered in determining the unimproved value of the land.

The court examined the statutory framework, particularly Section 12 of the Valuation of Land Act 1944-1987, which requires the unimproved value to be determined "assuming that the improvements did not exist." The court explored relevant case law, including Toohey's case and Tetzner v. Colonial Sugar Refining Co. Ltd, to understand the implications of the statutory language. The respondent argued that the restrictions on land use due to heritage status should be factored into the unimproved value, while the Valuer-General contended that the restrictions should only be considered if they would have existed even if the improvements had not been made.

The court concluded that statutory restrictions affecting the land's use, such as those stemming from its heritage status, must be taken into account in determining the unimproved value. The court found that the Valuer-General's approach had no foundation in law, as it ignored the impact of the heritage restrictions on the land's potential value. The appeal was dismissed, and the decision of the Land Court was affirmed. The court further ruled that the respondent was entitled to costs of the appeal, considering the matter as a test case that would benefit all parties involved.