Valuer-General of New South Wales v Oriental Bar Pty Limited

The appeal concerned the valuation of several heritage-listed properties in Haymarket, New South Wales, for the purposes of land tax. The Valuer-General of New South Wales (the appellant) appealed against decisions of the Land and Environment Court that had reduced the unimproved land value of the properties owned by Oriental Bar Pty Limited and others (the respondents). The primary judge had found that the Valuer-General's initial determinations were affected by an error regarding the gross floor area of the properties and had subsequently adjusted the land values downwards.

The central legal issues before the Court of Appeal were whether the primary judge erred in adjusting the land values downwards after finding an error in the Valuer-General's calculation of gross floor area, and whether the primary judge had correctly applied adjustments to comparable sales, specifically concerning development consent and the inclusion of Goods and Services Tax (GST). The court also considered whether the primary judge had impermissibly "double counted" land improvements in their assessment. The interplay between sections 6A(1) and 14G(2) of the *Valuation of Land Act 1916* (NSW) was also a key consideration in determining the correct approach to valuation.

The Court of Appeal allowed the Valuer-General's appeal and dismissed the cross-appeal. The court reasoned that the primary judge had erred in reducing the land values after identifying an error in the gross floor area calculation. The court found that the Valuer-General's original determinations, despite the error in gross floor area, were otherwise sound and should be confirmed. The court also held that the primary judge had made errors in adjusting comparable sales, particularly in relation to the value of development consent and the treatment of GST, and had also double-counted improvements.

Consequently, the Court of Appeal set aside the orders of the Land and Environment Court and, in lieu, ordered that the determinations of land value made by the Valuer-General for the subject properties for the base dates of 1 July 2010 and 1 July 2012 be confirmed. The respondents were ordered to pay the costs of the appeal and cross-appeal.