Valuer-General Victoria v WSTI Properties 490 SKR Pty Ltd

The Valuer-General of Victoria sought to determine the site value of a property in accordance with the Valuation of Land Act 1960. The property in question was subject to a site-specific heritage overlay due to the presence of a heritage building, while other planning controls allowed for more intensive development. The dispute arose as to whether the heritage building constituted an improvement for the purposes of the site value assessment and the relevance of the highest and best use of the land. WSTI Properties 490 SKR Pty Ltd contested the Valuer-General’s assessment and sought to appeal the decision. The Court was required to determine whether the building was an improvement for the purpose of site value assessment under the Act and, if so, how to reconcile the heritage overlay with the potential for more intensive development. The Court had to consider the relevant provisions of the Valuation of Land Act 1960, particularly sections 2(1), 2(2), and 5A, and the case law surrounding the valuation of land with heritage considerations.

The Court found that the heritage building was an improvement for the purpose of site value assessment, as it was a permanent structure that added value to the land. The Court rejected the argument that the highest and best use of the land should be considered in isolation from the heritage overlay, as the Act required the assessment of the site value based on its actual use and potential uses that are consistent with the existing planning controls. The Court also considered the case law and distinguished cases where the heritage value of a building was not considered an improvement for the purpose of site value assessment. The Court found that the Valuer-General’s assessment was consistent with the statutory framework and the relevant case law. Accordingly, the Court granted leave to appeal but dismissed the appeal.

The Court’s decision highlights the importance of considering the statutory framework and the relevant case law when assessing the site value of land subject to heritage overlays. The Court found that the heritage building was an improvement for the purpose of site value assessment, and that the highest and best use of the land should be considered in conjunction with the existing planning controls. The Court’s decision provides clarity for Valuer-Generals and property owners when assessing the site value of land subject to heritage overlays. The Court did not make any orders as the appeal was dismissed.