2011 University of Queensland Property Conference Reforms and actions following the extreme weather events in Queensland Neil Bray, Valuer-General In 2007, Bray revealed that SA's property value had risen 7.7 per cent on the year previous to $251 billion, and we're possibly in line for a similar increase coupled, of course, with council rate rises. Bray, then, is the ghost at the feast - although by some accounts, he's also a "very nice man... for a bean counter". the ghost at the feast something or someone that spoils your enjoyment by making you remember something unpleasant INTERNATIONAL VALUATION GUIDANCE NOTE: MASS APPRAISAL a legal system and legal infrastructure a recording and inventory system for all land, sufficient market data 1
INTERNATIONAL VALUATION GUIDANCE NOTE: MASS APPRAISAL sufficient resources and trained personnel maintenance of the inventory and databases more accurate valuations, more equitable taxation &; Site value drivers Recommendation of a number of reviews and reports over many years Most recent review PricewaterhouseCoopers engaged to undertake review of State s statutory valuation processes: The Act and the definition of unimproved value very prescriptive Amendments to definition in past decade had added complexity Site value will bring Qld into line with other states a process for sampling and testing developed models Benefits of site value? More reflective of Qld s State of development and removes uncertainty about what the land was like in its unimproved state Aligns with other states and territories Most commonly used methodology for assessment of land tax in Australia Is used by the Commonwealth Grants Commission Closer to market value Easier for valuers to assess Consistent with national agenda to harmonise and standardise statutory processes Contemporary 2
Land Valuation Act 2010 The Land Valuation Act 2010 (LVA) came into force on 20 September 2010, with some transitional provisions The new Act replaced the Valuation of Land Act 1944 (VoLA). The Land Valuation Act 2010: Modernised and strengthened the delivery of statutory land valuations in Queensland Has been supported by package of reforms aimed at providing a more consistent, transparent and equitable valuation process that is in line with best practice in other States Valuation Methodologies The LVA allows for two valuation methodologies unimproved value and site value Non-rural land will be valued on a site value basis and rural land on a unimproved value basis Rural land is land zoned as rural under a state endorsed planning scheme or equivalent under a local planning instrument Rural land does not include land zoned as rural residential or equivalent Streamlining objections and appeal process The Act provides that: the period in which to lodge an objection is extended from 45 to 60 days. the period in which to lodge an appeal is extended from 42 days to 60 days. for a mutual exchange of information and mandatory conferences with landowners with properties over $5 million in value (onus on department); and an appeal right to the Queensland Civil and Administrative Tribunal if an objection lapses. Introduction 3 May 2011, over 1.6 million statutory annual valuation notices issued to landowners in all 58 rateable local governments in Qld The valuation was delayed to allow for the SVS to assess the impact of floods and cyclones Site value used to value non-rural land for the first time Site value is the most significant change to the way valuations have been undertaken since 1944 The introduction of Site value is part of a suite of other valuation reforms 3
www.derm.qld.gov.au 2011 Valuation Communication Valuer-General s Property Market Movement Report Release prior to valuation issue Media Media releases Media spokespeople Briefings and consultation Valuer-General and senior SVS staff briefed key stakeholder groups Call centre Operational for 60 days Valuation notices, brochures Targeted valuation notices with brochures (brochure) Web Information Online valuation listing Fact sheets Frequently asked questions Web residential market tables Policies and notifications Media releases MP letters E-letters for all MPs with statistical tables Objection Guide and forms Landowner Guide Forms 58S, 58U, application for site improvement deduction 2011 Valuation Communication Valuer-General s Property Market Movement Report Release prior to valuation issue Media Media releases Media spokespeople Briefings and consultation Valuer-General and senior SVS staff briefed key stakeholder groups Call centre Operational for 60 days Valuation notices, brochures Targeted valuation notices with brochures (brochure) Web Information Online valuation listing Fact sheets Frequently asked questions Web residential market tables Policies and notifications Media releases MP letters E-letters for all MPs with statistical tables Objection Guide and forms Landowner Guide Forms 58S, 58U, application for site improvement deduction 4
2011 Valuation Communication Valuer-General s Property Market Movement Report Release prior to valuation issue Media Media releases Media spokespeople Briefings and consultation Valuer-General and senior SVS staff briefed key stakeholder groups Call centre Operational for 60 days Valuation notices, brochures Targeted valuation notices with brochures (brochure) Web Information Online valuation listing Fact sheets Frequently asked questions Web residential market tables Policies and notifications Media releases MP letters E-letters for all MPs with statistical tables Objection Guide and forms Landowner Guide Forms 58S, 58U, application for site improvement deduction 2011 Valuation Communication Valuer-General s Property Market Movement Report Release prior to valuation issue Media Media releases Media spokespeople Briefings and consultation Valuer-General and senior SVS staff briefed key stakeholder groups Call centre Operational for 60 days Valuation notices, brochures Targeted valuation notices with brochures (brochure) Web Information Online valuation listing Fact sheets Frequently asked questions Web residential market tables Policies and notifications Media releases MP letters E-letters for all MPs with statistical tables Objection Guide and forms Landowner Guide Forms 58S, 58U, application for site improvement deduction 5
2011 Valuation Communication Valuer-General s Property Market Movement Report Release prior to valuation issue Media Media releases Media spokespeople Briefings and consultation Valuer-General and senior SVS staff briefed key stakeholder groups Call centre Operational for 60 days Valuation notices, brochures Targeted valuation notices with brochures (brochure) Web Information Online valuation listing Fact sheets Frequently asked questions Web residential market tables Policies and notifications Media releases MP letters E-letters for all MPs with statistical tables Objection Guide and forms Landowner Guide Forms 58S, 58U, application for site improvement deduction www.derm.qld.gov.au Objections Objections lodged as a percentage of valuations issued 1999 to 2011 4.00% % of annual valuations issued 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 1.31% 1.04% 1.13% 1.16% 1.05% 3.46% 1.57% 1.64% 0.59% 0.59% 0.57% 0.48% 1999 2000 2001 2002 2003 2004* 2005 2006 2007 2008 2010 2011 Year of valuation issue (date of effect: 30 June) 6
Other valuation reforms Objection and appeals process enhanced properly made test simplified, lodgement dates extended Independent Valuer-General appointed Valuation of Land Act 1944 repealed replaced with the Valuation of Land Act 2010 Annual valuations Removal of shopping centre formula Review of valuation concessions 2012 Peer review panel Quality Assurance Framework Property Council Welcomes 2011 valuation results PCA Media Release 28 April 2011 Property Council Welcomes 2011 valuation results PCA Media Release 28 April 2011.The changes to the valuation legislation were based on a wide-ranging review into Queensland s valuation system. The review was undertaken after a high profile campaign against the impacts of the original changes led by the Property Council of Australia and Shopping Centre Council of Australia last year. We again thank the Government and the Department for the highly consultative approach to these reforms, after what was a rocky start. The property industry worked with the Government through the Valuation Reform Reference Group, which was an innovative and successful process. 7
Property Council Welcomes 2011 valuation results PCA Media Release 28 April 2011 Issuing Queensland s 1.6 million valuations under a new system would have been a mammoth task even before the natural disasters. Geoeye Optical satellite 6 th January Rockhampton Landsat5 4 th January Burdekin River 8
7th Jan Aster Satellite Rockhampton Landsat5 Mosaic Condamine Balonne River 6 th January DMCii Cubbie Station 14th January 9
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Disaster Events December 2010 to February 2011 25
Brisbane - 65 suburbs inundated January 2011 Peak: 4.6 m AHD 26
Fairfield 60% under water. Moggill Department of Environment and Resource Management Fig Tree Pocket Overlay Sequence 1 Yeronga, prior to flood 27
Department of Environment and Resource Management Department of Environment and Resource Management Overlay Sequence 2 - Photograph of flood Overlay Sequence 3 Flood polygon Finding the flood line 28
Property values in some flood affected suburbs are higher than they were in December, says RPData research head Flood-affected Brisbane properties hit the market, six months on Of the 10 suburbs the greatest recorded drops (-9.4 per cent) were in Fairfield and Rocklea by Michelle Hele From: The Courier-Mail July 16, 2011 12:00AM Pam Carstens, Quest Community Newspapers From: Quest Newspapers July 12, 2011 12:01AM Flood mapping tool for valuers Future Reform Initiatives Customer feedback, customer focus Continued stakeholder engagement VRRG Build on QA procedures, practices, benchmarking Peer review panel Continuous business improvement Implement independent chaired conferences properties over $5 million Greater use of electronic service delivery online lodgement of objections Improved workflow objection tracking Valuer-General Property Market Movement Reports Further systems enhancements 29
Accountable Independent Role of the Valuer-General Professional Leadership Responsive to Landowners 30
Future vision Customer feedback, customer focus Continued stakeholder engagement VRRG Build on QA procedures, practices, benchmarking Peer review panel Continuous business improvement Implement independent chaired conferences properties over $5 million Greater use of electronic service delivery online lodgement of objections Improved workflow objection tracking Valuer-General Property Market Movement Reports Further systems enhancements Future vision Customer feedback, customer focus Continued stakeholder engagement VRRG Build on QA procedures, practices, benchmarking Peer review panel Continuous business improvement Implement independent chaired conferences properties over $5 million Greater use of electronic service delivery online lodgement of objections Improved workflow objection tracking Valuer-General Property Market Movement Reports Further systems enhancements 31
B1 Future vision Customer feedback, customer focus Continued stakeholder engagement VRRG Build on QA procedures, practices, benchmarking Peer review panel Continuous business improvement Implement independent chaired conferences properties over $5 million Greater use of electronic service delivery online lodgement of objections Improved workflow objection tracking Valuer-General Property Market Movement Reports Further systems enhancements 32
Slide 126 B1 Bray_N, 20/02/2011