Alexandrou v Valuer General of NSW [2020] NSWLEC 139

Alexandrou v Valuer General of NSW [2020] NSWLEC 139

The requirements or restrictions of the Strata Schemes Development Act 2015 (NSW) are not relevant to, and do not limit, the statutory exercise of valuing a strata parcel for land tax purposes under s 6A(1) of the Valuation of Land Act 1916 (NSW). Valuation must proceed on the basis of a hypothetical sale between willing but not anxious parties of vacant land, free of actual improvements or ownership structure, and should be done in accordance with the property’s highest and best use as allowed by relevant planning controls rather than the limitations of strata legislation, which are not incorporated by the valuation statute. The orthodox direct comparison approach to valuation is to be...

Parties
First Applicant: Giovanna Alexandrou; Second Applicant: James Alexandrou; Respondent: Valuer General of NSW
Jurisdiction
Australia
Judgment Date
14 October 2020
Procedural Posture
Appeal / Principal Judgment Final Merits Determination
Outcome
Appeal dismissed
Legal Topics
Statutory Valuation, Land Tax Assessment, Strata Schemes, Statutory Interpretation
Valuation of Land Strata Title Taxation Statutory Valuation Land Tax Assessment Strata Schemes Statutory Interpretation

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Parties

Giovanna Alexandrou

First Applicant

James Alexandrou

Second Applicant

Valuer General of NSW

Respondent

Procedural Posture

Appeal / Principal Judgment Final Merits Determination

Legal Issues

  1. 1 Whether, in valuing a strata parcel for land tax purposes under the Valuation of Land Act 1916 (NSW), the requirements or limitations of the Strata Schemes Development Act 2015 (NSW) are relevant to the hypothetical valuation of vacant land required by s 6A(1) of the Valuation of Land Act 1916 (NSW)
  2. 2 Whether the Court should accept the Applicants' approach of valuing land in accordance with its existing use as a strata parcel and subject to the restrictions of the Strata Schemes Development Act 2015 (NSW), or the Respondent's approach of applying s 6A(1) assumptions and the conventional 'highest and best use' test irrespective of strata status

Ratio Decidendi

The requirements or restrictions of the Strata Schemes Development Act 2015 (NSW) are not relevant to, and do not limit, the statutory exercise of valuing a strata parcel for land tax purposes under s 6A(1) of the Valuation of Land Act 1916 (NSW). Valuation must proceed on the basis of a hypothetical sale between willing but not anxious parties of vacant land, free of actual improvements or ownership structure, and should be done in accordance with the property’s highest and best use as allowed by relevant planning controls rather than the limitations of strata legislation, which are not incorporated by the valuation statute. The orthodox direct comparison approach to valuation is to be...

Court Disposition

Appeal dismissed

Orders

  • The appeal pursuant to s 37(1) of the Valuation of Land Act 1916 (NSW) against the Valuer General's determination of an objection of land value as at 1 July 2018 is dismissed.
  • Costs are reserved.