“Five-year wait to fix valuation errors”

Daily Telegraph, 6 October 2005

IT will take up to five years to correct land valuation errors, with the Valuer-General yesterday committing to a re-evaluation of every property across the state.

The move comes after NSW Ombudsman Bruce Barbour this week found a host of errors in the land valuation process, with more than a third of the data used to assess rates unacceptably inaccurate.

Mr Barbour said a reassessment of all 2.4 million properties in NSW would be the only way to correct discrepancies.

"We've made the recommendation recognising it will be a long term process," Mr Barbour said.

However discrepancies would still occur under the land valuation system he said, with a need to inject at least $4 million a year to upgrade the service.

"Valuation will never be a science, it's no different to a few people going to an auction and having a different view of what the property is worth," he said.

While 80 per cent of properties were undervalued and 20 per cent overvalued, investors could face increased land taxes.

Valuer-General Philip Western said the aim was to assess every property in NSW within the five-year period.

He said the report by the Ombudsman would not be enough for individuals to object to land values.

This comes as the State Opposition also called for a judicial review into land valuation, which is used to set council rates and investor taxes.

Liberal Leader Peter Debnam said jumps in tax levels and the evaluation process should both be reviewed.

Land tax lawyer David Singer, who helped spark the Ombudsman's investigation, said the high level of discrepancies meant the system, which relies on figures "plucked from the air", should be scrapped all together.

He said valuations were increasing annually, with taxpayers hit by continually escalating bills that were not capped, unlike council rates.

"The system is unworkable but the Government doesn't want to change it because they are making too much money," Mr Singer said.

Investor Morris Mansour said his three-bedroom rental property at Thornleigh had increased in value by 100 per cent over five years, to $426,000.

Last year he received a bill for $11,000 in back-dated land tax, including a fine of $1346 for failing to make a payment, despite not receiving a bill.

"I've been fighting for three years and I've just been given the run around," he said.

"It's not worth it, but the market's so low it's not worth selling.

Further Information

For further information contact:

• Simon Singer
• David Singer