Valuer-General v Perilya Broken Hill Limited

The Valuer-General appealed to the Court of Appeal of New South Wales against a decision of the Supreme Court of New South Wales concerning the valuation of certain land. The dispute centred on the appropriate method for valuing a mining tenement for the purposes of land tax. Perilya Broken Hill Limited, the respondent, argued for a valuation method that reflected the actual market value of the tenement, taking into account its potential for mineral extraction. The Valuer-General, however, contended for a different approach, which was ultimately upheld by the Supreme Court.

The primary legal issue before the Court of Appeal was whether the Supreme Court had erred in its interpretation and application of the relevant valuation provisions under the *Valuation of Land Act 1916* (NSW) and the *Mining Act 1992* (NSW) in determining the unimproved value of the mining tenement. Specifically, the court had to consider how the statutory framework for land valuation interacted with the unique nature of mining tenements and the principles of market value.

Allsop P, in delivering the judgment, focused on the statutory language and the established principles of land valuation. The court analysed the definition of "unimproved value" and how it applied to land that was subject to mining rights. The reasoning emphasised that the valuation must reflect the potential of the land for use, including its mineral resources, and that the market value should be determined by what a willing but not anxious purchaser would pay for the tenement, considering its potential for profitable extraction of minerals. The court found that the Supreme Court's approach had correctly incorporated these principles.

The Court of Appeal dismissed the Valuer-General's appeal. The court ordered that a copy of its reasons be delivered to the ABC in Broken Hill, the Barrier Daily Truth, and any other persons with whom Mr Arndt, the Chief Executive Officer of Perilya Broken Hill Limited, had spoken about the matter.