Victorian Statutory Revaluation
Valuer-General Victoria and Municipal Group of Valuers
General Provisions for Specialist Guidelines
Introduction
This document is to be used when valuing specialist properties in accordance with the
Valuation of Land Act 1960 (VLA) for rating and taxation purposes.
These provisions provide definitions, general requirements, legislation and procedures and
should be read in conjunction with the following specialist guidelines:
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Aged Care
Caravan Parks
Development Land
Golf courses
Hotels/motels
Irrigation
Major Vineyards and Wineries
Marinas
Outdoor Advertising Signs
Petrol Stations
Plant and Equipment
Quarries
Shopping Centres
Telecommunications
Definition
Site value (SV) – site value of land means the sum which the land, if it were held for an
estate in fee simple unencumbered by any lease, mortgage or other charge, might in
ordinary circumstances be expected to realise at the time of the valuation if offered for sale
on such reasonable terms and conditions as a genuine seller might be expected to require,
and assuming that the improvements (if any) had not been made. 1
SV is commonly known as the market value of the land only.
Capital improved value (CIV) – capital improved value means the sum which land, if it were
held for an estate in fee simple unencumbered by any lease, mortgage or other charge,
might be expected to realize at the time of valuation if offered for sale on any reasonable
terms and conditions which a genuine seller might in ordinary circumstances be expected to
require.2
CIV is commonly known as the total market value of the land plus buildings and other
improvements.
Estimated annual value (EAV) – estimated annual value of land means the rent the land
might reasonably be expected to be let for from year to year (free of all usual tenants' rates
and taxes) less:
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1
2
the probable annual average cost of insurance and other expenses (if any) necessary
to maintain the land in a state to command that rent (but not including the cost of
rates and charges under the Local Government Act 1989); and
the land tax that would be payable if that land were the only land owned (single
holding basis).
Valuation of Land Act 1960 (Vic) s 2
Ibid.
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In accordance with Section (2A)(1) of the VLA, in determining estimated annual value no
deduction is to be made for:
(a) any provision, allowance or notional contribution to a sinking fund for the
renewal or replacement of any building, fitting, fixture or other improvement on
that land; or
(b) any provision or allowance or setting aside of an amount for depreciation of any
building, fitting, fixture or other improvement on that land.
Net annual value (NAV) – net annual value of any land means:
a) except in the case of the land described in paragraphs (b) and (c) –
i. the estimated annual value of the land; or
ii. five per cent of the capital improved value of the land – (whichever is the
greater); or
b) in the case of any rateable land which is –
i. farm land; or
ii. a house, flat or unit (other than an apartment house, lodging house or
boarding house) in the exclusive occupation of the owner and used for
residential purposes; or
iii. a house or unit (other than an apartment house, lodging house or boarding
house) in the exclusive occupation of a tenant and used for residential
purposes; or
iv. a residential unit in respect of which a residence right in a retirement
village (as defined in the Retirement Villages Act 1986) exists –
five per cent of the capital improved value of the land; or
c) in the case of parklands, reserves or other land owned by the Crown or any statutory
authority, occupied (other than under any lease) for pastoral purposes only-the
estimated annual value of it;.3
NAV is commonly known as the current value of a property’s net annual rent i.e. gross
annual rental less all outgoings – such as land tax, building insurance and maintenance
costs etc., (but excluding council rates). In accordance with the VLA, NAV must be at least
five per cent of the CIV.
Improvements – for the purpose of ascertaining the site value of land, means all work
actually done or material used on and for the benefit of the land, but in so far only as the
effect of the work done or material used increases the value of the land and the benefit is
unexhausted at the time of the valuation, but, except as provided in subsection (2AA), does
not include –
a) work done or material used for the benefit of the land by the Crown or by any
statutory public body; or
b) improvements comprising –
i. the removal or destruction of vegetation or the removal of timber, rocks,
stone or earth; or
ii. the draining or filling of the land or any retaining walls or other works
appurtenant to the draining or filling; or
iii. the arresting or elimination of erosion or the changing or improving of any
waterway on or through the land –
unless those improvements can be shown by the owner or occupier of the land to
have been made by that person or at that person's expense within the fifteen years
before the valuation.4
Improvements are commonly referred to as works done to the land.
3
Ibid.
4
Ibid.
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Land – includes buildings and other structures permanently affixed to land, land covered
with water, and any estate, interest, easement, servitude, privilege or right in or over land. 5
Levels of value – In accordance with Section 13DC of the VLA, a council must cause a
valuation of all rateable within its municipal district to be made as at 1 January in every
even calendar year and returned to the council before 30 June in that year. 6
Regard must be had to every circumstance affecting the land at the date the valuation is
returned that, were it to occur or come into existence subsequently, would be a
circumstance in which, under Section 13DF(2), a supplementary valuation could be made. 7
Rateable land – In accordance with Section 154 of the Local Government Act 1989 (LGA), all
land is rateable except land that complies with any of the provisions specified in Section
154, subsection 2 of the LGA.8
Interpretation of Legislation Act 1984, Part IV s38
Ibid. s 13DC(3)
7
Ibid. s 13DC(5)
8
Local Government Act 1989, s 154
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Other definitions and industry terms
Occupancy – For the purposes of the LGA, a separate valuation is required for each separate
occupancy on rateable land. Rateable land is defined in the LGA as 'any land which is
rateable under Section 154'.9
Section 154 of the LGA, under the heading 'What land is rateable?' provides that all land is
rateable, with the exception of those classes of land which are set out at s 154(2). The
circumstances which make land non-rateable relate either to ownership or use or both.
Section 13DC(1) of the VLA states:
In every valuation for the purposes of the Local Government Act 1989, each
separate occupancy on rateable land must be computed at its net annual value,
its capital improved value and, if required by a rating authority, its site value.
This provision makes clear that rateable land is a broader concept than occupancy. In other
words, there can be several occupancies on rateable land.
The occupancy itself should be assessed, as required by Section 13DC(1) of the VLA, as if it
were held for an estate in fee simple in accordance with the definitions of CIV and SV. The
definition of SV and CIV in Section 2(1) of the VLA posits land in a hypothetical estate in fee
simple as the subject of the valuation exercise.
In circumstances where there is a commonality of operation, use or physicality such that
individual occupancies are unable to be valued as if they were held in fee simple by
themselves, then the apportionment exercise of Section 2(3) of the VLA should be
undertaken.
Section 2(3) of the VLA states:
If it is necessary to determine the capital improved value or site value of any
rateable land in respect of which any person is liable to be rated, but which
forms part of a larger property, the capital improved value and site value of
each part are as nearly as practicable the sum which bears the same proportion
to the capital improved value and site value of the whole property as the
estimated annual value of the portion bears to the estimated annual value of the
whole property.
What constitutes occupancy will largely turn on the facts of each case. However, when
considering what amounts to an occupancy for the purposes of a rating exercise under the
LGA and VLA, a valuer should consider whether:
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there is actual occupation;
that occupation is exclusive for the particular purposes of the possessor;
the possession is of some value or benefit to the possessor; and
the possession is not too transient.10
Estate in Fee simple – The definition of SV and CIV in Section 2(1) of the VLA refers to ‘the
sum which the land, if it were held for an estate in fee simple unencumbered by any lease,
mortgage or other charge’.
Various authorities have dealt with the issue of estate in fee simple and unencumbered
including the Shell case, the South Australia Trust Company cases and most recently the
decision on the Jam Factory.
Ibid.
Mayor Councillors and Citizens of the City of Heidelberg v Fawcett (unreported, Supreme Court of Victoria,
Crockett J, O/R8500 of 1983, 1 June 1984), page 6.
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What is emphasised by these cases is that the estate in fee simple is the interest to be
valued, it being the highest estate known to law. The definition of SV and CIV in Section 2(1)
of the VLA posits land in a hypothetical estate in fee simple as the subject of the valuation
exercise. The estate is hypothetical because, as the use of the conditional if demonstrates, it
is deemed not to be subject to certain interests which restricts the bundle of rights which
accompany the highest estate know to law, regardless of whether the actual estate in fee
simple in which the land is held is subject to a lease, mortgage or other charge.
What the hypothetical purchaser is buying is the bundle of rights to the land which
comprise this hypothetical fee simple estate. In short, a valuer must assess the value of a
bundle of rights in a physical thing, the subject land; in the state in which it existed at the
relevant date having regard to market circumstances.
Real property – Real property and personal property are two of the main terms used in
English common law. Real property comprises two distinct elements, corporeal
hereditaments and incorporeal hereditaments.
Highest and best use – The highest and best use principle is fundamental to deriving value
of land. It is a principle of valuation procedure to value land in accordance with its highest
and best use.11
It has been described in the High Court as the most advantageous purpose for which [the
land] was adapted: Spencer v The Commonwealth12.
When determining value of land , the following sections of the Valuation of Land Act 1960
should be taken into account:
 Section 5A (3)(a) – the use to which such land is being put at the relevant time, the
highest and best use to which the land might reasonably be expected to be put at the
relevant time and to any potential use;
 Section 5A (3)(f) – the actual and potential capacity of the land to yield a monetary
return.
Comparable sales – are market transactions (sales) that have similarity to the land to which
the value is being determined.
The VLA refers to the weight to be given to the evidence of sales of other lands when
determining value.
Section 5A(2) of the VLA states:
In considering the weight to be given to the evidence of sales of other lands when
determining such value, regard shall be given to the time at which such sales
took place, the terms of such sales, the degree of comparability of the lands in
question and any other relevant circumstances.
The following, an extract from the most recent Supreme Court Decision in the Jam Factory
case, refers to comparable sales.
As is implicit in the provisions of s 5A of the Act, the essence of the valuation
process is the assessment of comparable sales, making adjustments to the extent
necessary so that the process is one which involves, as nearly as possible,
comparing “like with like”. This process was helpfully discussed by Morris J
(sitting as President of VCAT) in ISPT Pty Ltd v City of Melbourne:
“ 51 It is sometimes thought that sales are either comparable or not comparable:
that is, a binary paradigm should be used to classify sales. In my opinion, this is a
flawed approach. Rather there will be gradations of comparability: from identical
to irrelevant. As this scale of comparability approaches the irrelevant end, there
will be many sales that offer so little assistance that they ought be disregarded.
Alan Hyam The Law Affecting Valuation of Land in Australia (Federation Press, 4th Ed 2009) 184
ISPT Pty Ltd v Melbourne City Council & Anor [2008] VSCA 180 para 40
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Further, there will be circumstances where there is a sale or sales that are
strongly comparable; in which case there will be no need to closely analyse other
sales, even though these may be comparable in some way.
...
53 The comparable size, location and condition of land must also be taken into
account in a similar way. Similarly, the use to which land might be put must be
considered. This exercise might produce the result that a sale is so dissimilar that
it should be disregarded; or it might produce the outcome that a sale needs to be
adjusted before being applied; or it might produce the outcome where a sale is
given more or less weight in the exercise of a valuation judgment.” 13
13
Challenger Property Asset Management Pty Ltd & Anor v Stonnington City Council & Anor [2011] VSC 184 at 8-9
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Victorian legislation and cases applicable to rating valuations
While the whole of the Valuation of Land Act 1960 is relevant to all rating valuations, the
following sections refer to some of the fundamental aspects of rating valuations
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Section 2(1) – Definition of site value
Section 2(1) – Definition of ‘improvements’ for the purpose of ascertaining site value
Section 2AA – Works relating to a port,
Section 2(1) – Definition of net annual value
Section 2(1) – Definition of capital improved value
Section 2(1) – Definition of estimated annual value
Section 2(2) – Estimating value of improvements in ascertaining site value
Section 2(3) – Apportionment by EAV
Section 3A(1) – Access to lands and buildings
Section 3A (2) – Powers to apply penalties if information is not returned or accurate
or access is not given
Section 5A – Determining the value of land
Section 13DC– Valuations generally
Section 13DF – Circumstances for supplementary valuations.
Section 16– Who may object?
Section 17 – Grounds for objection
Section 18 & 19 – Timing provisions for objections
Section 20 – Exchange of Information on certain objections
Section 21 Determination of objection
Section 22 – Application to review for VCAT
The following Acts are relevant to statutory valuations:
 Local Government Act1989
 Planning and Environment Act1987
 Retail Leases Act 2003
 Residential Tenancies Act1997
 Subdivisions Act1988
 Heritage Act1995
 Victorian Conservation Trust Act1972
 Conservation, Forests and Lands Act1987
Court cases
Precedent, authority or legal principle, are terms relating to the ‘rule’ created by courts or
tribunals that guide judges/members in subsequent cases with similar issues or facts. The
rules from a higher court are mandatory precedent on a lower court within that system and
must be followed.
Supreme Court decisions are binding on the Victorian Civil and Administrative Tribunal
(VCAT) in cases dealing with similar issues or facts, while a VCAT decision would only be
persuasive in the Supreme Court (noting that lower decisions must be considered before
they are departed from). The Court of Appeal (a division of the Supreme Court) is the
highest court in Victoria, while the High Court of Australia is the superior court of the
country.
One variation to this is when the VCAT president, who is also Supreme Court judge,
presides over a matter at VCAT it has the standing of a Supreme Court decision.
The following cases are examples of the more commonly cited historic and recent cases in
relation to the general concepts of valuation principles. Each case has the catchwords
sourced from the cited case where available.
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Spencer v Commonwealth [1907] HCA 82
Resumption, not by means of a forced sale, but by voluntary bargaining between the
plaintiff and the purchaser, willing to trade, but neither of them so anxious to do so
that he would overlook any ordinary business transaction.14
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Brewarrana Pty Ltd v Commissioner of Highways (1973) 6 SASR 541
Compensation – Role of Court – Expert Witness – Comparable Sales – In globo Lands
– Price per lot method – Hypothetical Subdivision method – Allowance for Interest –
Profit and Risk.15
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Tooheys Limited (Appeal No. 86 of 1924) v The Valuer-General (New South Wales)
[1924] UKPC 113
Hotel U.V [Unimproved Value] – value of a licence must not be considered part of the
U.V.16
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Royal Sydney Golf Club v Federal Commissioner of Taxation [1955] HCA 13
Land Tax – Land – Golf course – Golf club – Facilities and amenities – Use by
members – Unimproved value of land – Valuation – Regard to provisions and effect
of County of Cumberland Planning Scheme – "Vacant land" – "Built-up land" –
Restrictions – "Land upon and which there are no buildings" 17
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Sergius Alexander Tetzner (Appeal No. 6 of 1956) v The Colonial Sugar Refining
Company Limited (Fiji) [1957] UKPC 15
U.V [Unimproved Value] determined on the basis that it was without buildings or
physical improvements but was in the town of Lautoka and a sugar mill was
operating in the town.18
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Turner v Minister of Public Instruction [1956] HCA 7
Valuation – Residential allotments – Land suitable for sale in sub-division –
Resumption – Principles of valuation – Risk of realisation – Valuation of Land Act
1916-1951 (N.S.W.), ss. 5, 6, 68 – Public Works Act 1912 (N.S.W.), s. 124 – Land and
Valuation Court Act 1921-1940 (N.S.W.), ss. 9 (1), 17.19
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The Honourable William McCulloch Gollan and another (Appeal No. 7 of 1960) v
The Randwick Municipal Council (New South Wales) [1960] UKPC 32
U.V [Unimproved Value] and I.V [Improved Value] – unencumbered fee simple –
difference between a public law affecting the enjoyment of land and a restriction of
title – fee simple thus unencumbered.20
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Shell Co of Australia Ltd and Number One Spring Street Pty Ltd v City of
Melbourne [1997] 2 VR 615
LOCAL GOVERNMENT – Rating of land – Under local government legislation – City of
Melbourne – Whether return necessary – Valuation made before but rate declared
after 1 October 1992 – What Act applicable to such valuation – "Returned to take
effect" – Act no 178 s42; s43 – Local Government Act 1958 s254; s255; s258; s262 –
Local Government Act 1989 s157(1) s160 – Valuation of Land Act 1960 s2(1) & Part II
Div 3A – Valuation of Land (Amendment) Act 1989 s4(1)
PROPERTY LAW – Valuation of land – Statutory values – Net annual value – Estimated
annual value – Whether land tax profit on services or allowance for depreciation
deductible – Premium quality office tower – "Usual tenants rates and taxes" –
"Probable average annual cost of .... expenses" – Land Tax Act 1958 s6; s8(1); s42
Valuation of Land Act 1960 s2(1)
PROPERTY LAW – Valuation of land – Statutory values – Capital improved value –
"Unencumbered by any lease" – Valuation of Land Act 1960 s2(1)21
J.P. Petherick, Digest of Court Decisions Specially Prepared for Valuers, Australian Institute of Valuers Inc, 2nd
edn, 1974 at 26
15
Court Decisions for Examination Study Valuers , Australian Institute of Valuers Inc, 2nd edn, 1984
16
Petherick p 28
17
Royal Sydney Golf Club v Federal Commissioner of Taxation [1955] HCA 13 at 1
18
Ibid., p 27.
19
Turner v Minister of Public Instruction [1956] HCA 7 at 1
20
Ibid., p 13.
21
Shell Co of Australia Ltd and Number One Spring Street Pty Ltd v City of Melbourne [1997] 2 VR 615 at 1
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101 Collins Street v City of Melbourne (1995) 87 LGERA 207
PROPERTY LAW – Valuation of land – For rating purposes – Misapprehension by
judge of valuer's evidence – Whether finding made once misapprehension corrected
open on evidence as a whole – Question of law – Valuation of Land Act 1960, s47(4)22
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Maurici v Chief Commissioner of State Revenue [2003] HCA 8
Land tax - Valuation of land – Improved residential property in Sydney – Assessment
of unimproved value of land – Whether s 6A(1) Valuation of Land Act 1916 (NSW)
includes use of improved land sales – Relevance of "scarcity" – Valuation by
reference substantially or exclusively to sales of unimproved land invalid. 23
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Murdesk Investments v Roads Corporation [2006] VSC 363
Compensation for compulsory acquisition of part of land – Before and after value –
Pointe Gourde principle – Hypothetical zoning – Hypothetical availability of services –
Highest and best use – Comparable sales – Enhancement – Severance – Expert
evidence – Land Acquisition and Compensation Act 1986, ss.40, 41, 43. 24
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Perpetual Trustee Company Ltd & Anor v Valuer-General, Trust Company of
Australia Ltd & Anor v Valuer-General [2006] SASC 216
REAL PROPERTY – VALUATION OF LAND - STATUTORY VALUES – CAPITAL VALUE
Appeal against assessment by Valuer-General of the capital value of land – definition
of "capital value" – meaning of "unencumbered" – whether allowance must be made
for a let-up period in determining "capital value".
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ISPT Pty Ltd v Melbourne City Council & Anor [2008] VSCA 180
VALUATION OF LAND – Application for leave to appeal decision of Victorian Civil
and Administrative Tribunal – Role of the Tribunal – Whether expert tribunal –
Whether Tribunal pieced together own valuation.
VALUATION OF LAND – Highest and best use – Whether single precise use or
combination of uses.
VALUATION OF LAND – Comparable sales – Improved and unimproved sales –
Vacant land sales – Weight to be given to valuer’s evidence. 25
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Challenger Property Asset Management Pty Ltd & Anor v Stonnington City
Council & Anor [2011] VSC 184
VALUATION OF LAND – Meaning of “site value” – Meaning of “capital improved
value” and whether “vacant to let” deduction required – “highest and best use” –
Falconer principle – sales of other properties and their relevance as comparable sales
or on other bases – Valuation of Land Act 1960 (Vic).
REAL PROPERTY – Meaning of fee simple in possession – “Whether lease an
encumbrance”.26
101 Collins Street v City of Melbourne (1995) 87 LGERA 207 at 1
Maurici v Chief Commissioner of State Revenue [2003] HCA 8 at 1
24
Murdesk Investments v Roads Corporation [2006] VSC 363 at 1
22
23
25
26
ISPT Pty Ltd v Melbourne City Council & Anor [2008] VSCA 180 at 1
Challenger Property Asset Management Pty Ltd & Anor v Stonnington City Council & Anor [2011] VSC 184 at 1
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Victorian Statutory Revaluation
Property inspection
The following procedure and considerations are recommended when inspecting the
property and discussing with the owner/agent.
1.
2.
Verbal introduction:
 Introduce yourself as a valuer and ascertain the contact details of the owneragent.
 Provide a brief explanation of the revaluation process (SV, CIV, NAV and EAV)
and forthcoming rental questionnaire.
 Offer a brief explanation of the relevant sections of the Valuation of Land Act
1960, such as:
o site improvements, apportionment of total CIV, for example if there
are multiple dwellings-occupancies on the property;
o powers under the VLA that allow access to land and buildings,
inspection of books and documents and answering of questions
written or verbally;
o penalties applicable if information is not provided or wilful
omission or falsifying of information;
o that privacy legislation does not apply to requests made under the
Valuation of Land Act 1960 when directed to companies or
government, it only becomes an issue when directed to private
individuals.
.
Investigate documents to be sighted, if applicable:
 Certificate of Title including plan of area.
 Lease(s)
 Schedule of outgoings
 Lease(s) – area plan
 173 Agreements
 Planning permits
 Building plans
 Environmental audit reports
 Any documents referring to any restrictions to the use or further
development of the property.
3.
Site attributes:
 Confirm land area,
 Determine title boundaries and number of parcels (if applicable)
 Access and frontage to property
 Orientation and topography
 Soil types (if relevant) and/or soil contamination issues
 Any climatic conditions that may affect the property (e.g. rainfall, frost etc)
4.
Inspect and investigate what improvements are associated with the property.
The inspection of improvements on the property such as houses, other buildings,
sheds, plant, equipment, crops and plantations etc need to include ascertaining the
condition, renovations and suitability of the building(s).
5.
Clarify any data if required with manager/owner.
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Covering letter and rental questionnaire
Covering letter
State Government legislation requires Victorian councils to revalue all rateable properties
within their respective municipal boundaries once every two years.
The relevant date for the next revaluation is 1 January 2012. Council will use the new values
for rating purposes for the 2012–2013 and 2013–2014 financial years.
Each time a revaluation occurs, owners, managing agents and occupiers of commercial and
industrial properties are required to provide information to their councils (and/or their
representatives) that will help produce an accurate valuation for every property.
Section 3A of the Valuation of Land Act 1960 requires and provides that:
(a) a valuer may enter at all reasonable hours in the daytime upon any land building or
premises;
(b) a valuer may put either verbally or in writing any relevant questions to enable the
making of a true and correct valuation;
(c) a valuer may inspect any books or documents and papers for the purpose of such
valuation and without charge take extracts there from;
(d) council (and their representatives) must treat the information as confidential;
(e) a penalty not exceeding two penalty units per assessment applies for failure to allow
such entry or inspection, refusal or wilful omission in answering questions or
providing information or falsifying any information provided.
Under the legislation the valuer is required to assess the annual rental on a year-to-year
basis. In accordance with that requirement the attached rental questionnaire is to be filled
in and returned to council by the [xx date].
While it is preferred that documentation be returned in an electronic format, a hard copy is
acceptable. Centre tenancy schedules may provide a substantial component of the
information required.
If you have any questions please do not hesitate to contact council’s valuer [insert details of
valuer].
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[Municipality] General Valuation 2012 Rental Questionnaire
Property address: [
]
Assessment number: [
]
This request is made in accordance with Section 3A of the Valuation of Land Act 1960, which requires
all information received to be treated as strictly confidential and used only for valuation purposes.
1. Occupancy details
Name of occupant/tenant:
Trading name of business:
Use of premise (i.e. shop, office, workshop):
Name of managing agent (if any):
Is the property currently:
 Leased
If leased, please complete Sections, 2, 3, 4 and 5.
 Vacant
If vacant, date vacated ____/____/_____

Owner occupied
If vacant or owner occupied, go to Section 5.
Are any parts of the property occupied by separate tenants?  Yes  No
If yes, please complete a separate questionnaire form for each tenancy. If additional forms are required, please
contact, [valuer /contract valuer] on [phone no].
2. Land details
Land area – Council’s records indicate that the total site area is :
Is the land area correct?  Yes  No (If No) specify correct land area ___________________________
Site works – please provide details of site works (including actual costs of works and date of completion
of works) for the last 15 years (by line item):
__________________________________________
______________________________________________________________________________
______________________________________
Other land details: Is there anything else considered to impact on the value of the site, such as disallowance of planning
permits, covenants, specific requirements relating to development permits etc?
_______________________________________________________________________________________
3. Property details
Construction material:  Brick
Year built: ____________
 Concrete
 Steel
 Other __________________________
Year(s) extended: _____________
Building area occupied:
Description e.g. warehouse
Square metres e.g. 500
 Net lettable area, or
 Gross building area
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General comments (any additional information you believe may affect the value of the property):
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
4. Lease details
Lease commencement date: ____/____/_____
Initial term:
Current rental:
_______________
Lease options:
$______________  Per week
________________
 Inclusive GST
 Per calendar month
 Exclusive GST
 Annual
Percentage rent: if applicable (please provide respective thresholds and actual/estimated turnover details to
calculate percentage rent component) ____________________________________________
Base rental $______________
 Per week
 Inclusive GST
 Per calendar month
 Exclusive GST
 Annual
Actual recovery $______________  Per week
 Inclusive GST
 Per calendar month
 Exclusive GST
 Annual
Date last reviewed:
____/____/_____
Frequency of rent review: _______________ (e.g. annual, two yearly)
Method of rent review:
 CPI
 To market
 Fixed _______%
 Pre-determined $___________
 Other___________
Onsite car parking: Is additional rent paid for car parks?
 Yes  No
If yes, number of car parks: ___________
Current monthly rent: ___________
Incentives (any incentives/special lease conditions e.g. rent-free period, free fit-out etc.):
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
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Victorian Statutory Revaluation
Other details considered relevant – (please include all other details that you believe may affect the
statutory values of the property(s) :
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
5. Outgoings
Who is responsible for paying the following outgoings:
Amount
Amount
Council rates:
 Tenant $ _______
 Owner $ _______
Water rates:
 Tenant $ _______
 Owner $ _______
Land tax:
 Tenant $ _______
 Owner $ _______
Building insurance:
 Tenant $ _______
 Owner $ _______
Repairs:
 Tenant $ _______
 Owner $ _______
Scheduled maintenance:  Tenant $ _______
 Owner $ _______
Owners corporation fees:  Tenant $ _______
 Owner $ _______
 Tenant $ _______
 Owner $ _______
Other:
If other applies, please describe:
__________________________________________________________
6. Declaration
I hereby declare that all information provided is true and correct.
Name (please PRINT): ______________________
I am the  Tenant  Owner  Managing agent
Signature: ______________________
Date: ___________ Phone: ___________
Please return form by post in the reply paid envelope provided; by facsimile to [Valuer/contract valuer’s fax
number]; or by email to [Valuer/contract valuer’s email].
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Methodology
Site value methodology
Subsection 2(1) in the VLA sets out the definition of site value and the main considerations
are:




estate in fee simple
unencumbered by any lease, mortgage or other charge
reasonable terms and conditions a vendor might expect; and
assuming the improvement (if any) had not been made.
Tetzner’s case and more recently the Maurici case(s) have confirmed that the valuer should
consider all surrounding improvements to the land such as roads, services and
infrastructure, but excludes the value of improvements on the land (as defined in the VLA).
The usual factors in assessing site value such as land area, frontage, topography, shape,
location, accessibility, exposure, proximity to public transport and amenities etc. should be
taken into consideration.
Highest and best use
The site value of a parcel with or without a planning permit should be assessed having
regard to highest and best use. The valuer should consider the:


current use assuming a permit would be granted,
the potential use given the underlying zoning of the land.
Highest and best use refers to the potential use in general terms and is based on the likely
permitted use(s) under the existing planning scheme provisions.
The market value based on the highest and best use should be determined from sales of
similar zoned land with similar development potential.
Site improvements
Site improvements as defined under Section 2 (b) of the VLA are improvements included in
the site value unless those improvements can be shown by the owner or occupier of the land
to have been made by the person or at that persons expense within fifteen years before the
valuation.
If these improvements have been carried out within the 15 years the valuer must ascertain
the added value of these works (if any) and assume they have not been made.
Apportionment
If the site value or capital improved value for individual occupancies is required to be
apportioned then this should be undertaken in accordance with Section 2(3) of the VLA.
(Refer to ‘Occupancy’ definition on page 3).
Surplus land
Surplus undeveloped land is considered a separate occupancy and can be valued as a
separate rateable assessment, even when a separate title does not exist. Each parcel must
be assessed as an estate in fee simple. Refer to definition of Occupancy.
The valuer is required to determine what is surplus land by having regard to whether:
 the land is not required to be occupied under the existing use and/or
 is set aside for future redevelopment.
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Victorian Statutory Revaluation
Sales analysis
When carrying out a sales analysis the following need to be considered:

verify the sale price and establish the terms and conditions of sale;

verify if the sale price is inclusive or exclusive of GST. The agent and/or solicitor are
the points of contact to determine this information;

determine if the sale is an ‘arms length’ transaction and in accordance with the
principles outlined in Spencer v Commonwealth;

the valuer should ascertain if stock, plant and equipment and/or business/goodwill
component is included in the sale price, i.e. “walk in, walk out” price or “bare” price;

ensure that the sale price is analysed to a cash equivalent under ordinary
circumstances;

sales need to be analysed to a common unit of comparison having regard to the
property type;

sales on a “walk in, walk out” basis should be scrutinised as the apportionment of
the sale price for each component may be negotiated by each party based on their
specific financial circumstances rather than any indication of market value;

if it is established that the sale is of a leasehold interest the valuer will need to
establish the lease terms and identify the sale as a partial interest.
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Industry and additional information

Valuation Best Practice Guidelines
The Valuation Best Practice Specifications Guidelines (VBP guidelines) assist councils
to prepare documents for biennial revaluations. The VBP guidelines provide
templates and information for councils to:
o
o
o
o
prepare a contract for valuation and related services;
manage the contract;
improve the quality of valuations and property databases; and
better define the relationship between council, the valuer and Valuer-General
Victoria.
The VBP guidelines are updated for each revaluation based on feedback from
councils and contract valuers.

Australian Property Institute (API) standards
The valuation profession in Victoria operates according to a code of conduct for
valuers published by the API. This code is based upon the code of ethics, rules of
conduct, concepts, principles and definitions, practice standards, guidance notes
etc..

Australian Valuation Property Classification Codes
The Australian Valuation Property Classification Codes (AVPCC) assist valuers
providing rating authority and government asset valuations.
The codes, originally approved by the national meeting of Valuers-General in March
2007, were updated in January 2009. The codes are being used by Victoria for the
2012 council revaluation.
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