The Valuer General values land in New South Wales under the Valuation of Land Act 1916 for rating and taxing.
The Valuer General issues land values to councils for rating at least every four years. These land values are fixed for rating until new land values are issued to council.
In conjunction with the issue of land values to councils the Valuer General provides landowners with a Notice of Valuation informing them of the new land value of their property. From the following 1 July this land value will be used by councils to calculate rates.
Information about the valuation system is available in the Your land value brochure (PDF 669KB), this website and by phoning 1800 110 038.
Click here (GIF 70.4 KB) for a diagram explaining the components your Notice of Valuation.
Valuation terms
Register of Land Values
The official record of land values for land in NSW. The Register of Land Values contains information that includes ownership or rate paying lessee details, title details and the value of the land.
Land value
The value of the land only. It does not include structural improvements and the legal effect of encumbrances such as easements. However, works including clearing, filling, draining and retaining walls are included.
Land value as at 1 July
To keep valuations consistent, land is valued as at 1 July in the year of valuation.
Supplementary valuation
A new land value is determined outside of the usual three to four year valuation cycle because of specific changes to circumstances surrounding the property.
Supplementary valuations can occur due to subdivision, changes to zoning or if a land value is amended (other than through the objection process).
Easements
An easement is an acquired legal right enjoyed by the owner of land over the land of another. Land valuations do not take easements into account, as the valuations are required to be made on the hypothetical basis that the land is free of impediments to title. However, the physical effects of an easement, for example transmission lines, access roads and pipes laid for drainage, will be reflected in the land value.
Fee simple
This is the highest form of ownership of land available to members of the public and is commonly known as freehold ownership, disregarding encumbrances such as covenants, caveats and other restrictions. It provides a common basis for all land to be valued to ensure equity for the purposes of levying rates and taxes.
It should be noted that the actual title vested in the owner could differ from ‘fee simple’ as used for the valuation, through the effect of caveats, covenants and other restrictions.
Heritage properties
These are recognised under two different Acts for rating and taxing purposes.
Heritage Act 1977
Properties listed on the State Heritage Register are valued under the provisions of sections 124 and 125 of the Heritage Act 1977. The value is known as a heritage value and takes into consideration the impact of the heritage listing. The heritage value is used for rating and taxing purposes.
Valuation of Land Act 1916
The land value of properties that are heritage restricted by a planning instrument such as a local or regional environmental plan is determined in accordance with section 14G of the Valuation of Land Act 1916. The heritage restriction is considered when determining the land value used for rating and taxing purposes.
Median
The median land value or median sale price is the half-way value in a series of land values or sale prices from lowest to highest value. Approximately half the properties in a location will have a higher value and half will have a lower value than the median.
For example if there are nine sale prices for properties and they are arranged from lowest to highest, the median will be the fifth or middle value in ascending order.
The median gives an indication of the value of a typical property in a location such as a suburb or local government area. Graphing the median value for a location over time gives an indication of the movement in value of a typical property in that location.
Concessions and allowances
Off site allowance/On site allowance
An allowance for the added value of works by the current owner which improve the land or enable its more beneficial use.
Subdivision allowance
An allowance provided to the subdivider of the land for the discount applied from the total land values of the lots in a deposited plan had they been sold to one person.
Mixed Development Apportionment Factor (MDAF)
The percentage of the land value represented by the non-residential use of a building comprising a mixture of residential and non-residential uses. Rates and taxes may be apportioned based on this factor.
Mixed Use Apportionment Factor (MUAF)
The percentage of the land value represented by the non-residential use of a property comprising a mixture of residential and non-residential uses. Rates and taxes may be apportioned based on this factor.
