Town of East Fremantle v Cornell

The Town of East Fremantle (the appellant) appealed to the High Court of Australia against a decision of the Supreme Court of Western Australia concerning the valuation of land for the purpose of calculating rates. The dispute arose from the Town's assessment of rates on land owned by Mr Cornell (the respondent), which the respondent contended was excessive.

The High Court was required to determine whether the Supreme Court had erred in its interpretation of the relevant provisions of the *Local Government Act 1995* (WA) and the *Valuation of Land Act 1978* (WA) concerning the method of valuation for rating purposes. Specifically, the central issue was whether the unimproved value of the land, as determined by the Valuer-General, should be adjusted to reflect the existence of a restrictive covenant that limited the development potential of the land.

The High Court, in allowing the appeal, held that the Valuer-General's valuation, which did not account for the restrictive covenant, was the correct basis for calculating rates. The Court reasoned that the *Valuation of Land Act* mandated the Valuer-General to determine the unimproved value of land, and this valuation was to be made irrespective of any restrictive covenants that might affect its use or development. The purpose of the Act was to establish a uniform and objective basis for valuation, and to allow for adjustments based on private agreements like restrictive covenants would undermine this purpose and introduce an element of subjectivity. The Court affirmed that the unimproved value, as determined by the Valuer-General, was the statutory basis for the imposition of rates by the local government.