FROM OUR VALUATION TEAM
We are often asked by our clients about the scope for objecting to the Site Value assessments placed on their properties by the Valuer-General of South Australia.
McGees Property has a high success rate in assisting clients object to their Site Value assessments.
Here are some of their frequently asked questions, and our advice.
- What is Site Value?
- How is Site Value assessed?
- How does site value affect property owners?
- Is it worth objecting to a Site Value assessment?
- How to lodge an objection
- Why engage McGees Property to object on your behalf
What is Site Value?
Site Value is the assessment of the land value of a property excluding any improvements constructed thereon, and reflects the South Australian property market at January 1 each year.
Site Value assessments are released by the Valuer-General in July each year. Property owners find out their property’s Site Value after receiving their Land Tax Assessment Notice from RevenueSA.
How is Site Value assessed?
The Office of the Valuer-General conducts a mass appraisal of properties in South Australia and analyses data from identified submarket groups to derive an index by which to determine site value.
How does Site Value affect property owners?
RevenueSA uses the Site Value to levy Land Tax for the corresponding financial year.
Any increase to the Site Value will see a direct rise in the Land Tax payable by property owners.
After Cycle 1 of the Revaluation Initiative was completed in FY 2019/20 we saw significant Site Value assessment increases across different asset classes in metropolitan and regional locations. Cycle 2 is due for completion in FY 2020/21.
The introduction from 1 July 2020 of ownership aggregation (where all land held in common ownership is to be assessed in total) and surcharges for assets held in trust structures have also resulted in significant increases in land tax liabilities.
Is it worth objecting to a Site Value assessment?
A reduction in the assessed Site Value of a property can result in a significant saving on land tax for that financial year (and beyond). The following is an example illustrating potential savings on a hypothetical reduction:
|Site Value Assessment||State Land Tax Liability|
(single holding basis, general rates)
As the recovery of Land Tax is prohibited under the Retail and Commercial Leases Act, any reductions are generally returned directly to the property owners.
How to lodge an objection
To object to a Site Value Assessment you must provide sufficient market evidence to support your claim that your site value is incorrect. You are also required to lodge the objection within 60 days of receiving your rate notice.
Objections must be submitted to the Office of the Valuer-General, which McGees Property can do on your behalf.
Why engage McGees Property to object on your behalf?
Our highly skilled team of qualified valuation professionals are experienced in building a strong case for Site Value objection.
With access to the latest market intelligence and sales/rental data, the team can clearly articulate with the Valuer-General the best case for a reduction in the assessed value of a property, particularly with reference to the Valuation of Land Act 1971 and its application to the subject property.
Our clients who are property owners tell us land tax is their greatest concern. In FY 2020 we achieved a 90% success rate in assisting with objections, saving our clients thousands of dollars.
With land tax expenses going up as a result of the Revaluation Initiative and aggregation, our experience and knowledge affords us a unique position to discuss specific valuation consideration characteristics of a property and achieve the best outcome.
McGees Property is South Australia’s largest privately-owned commercial real estate firm, dedicated to helping our clients achieve their property-related goals.