‘Doesn’t make sense’: mayor meets with minister over spike in land valuations

The mayor of Noosa has met with Queensland’s Natural Resources Minister to raise residents’ concerns about land valuation increases.

Clare Stewart requested the meeting after the latest valuations for Noosa saw many land values double in 12 months, causing a financial impact on ratepayers.

Cr Stewart said she was disappointed with the outcome of the meeting with the minister, Scott Stewart.

“Many in our community are still recovering from the devastating 2022 flood events so we put forward suggested solutions seeking the process to be reviewed to improve outcomes for councils and the community,” Cr Stewart said.

“This could involve the state collaborating closer with local councils on decisions to proceed with valuations and taking into account unprecedented situations impacting land valuations.”

In response, a spokesperson for the Department of Resources said councils could manage rates in other ways.

“Valuations are just one of many factors councils use to determine levels of rates,” they said.

“Councils have wide-ranging powers to manage rates, including differential rating, setting a minimum rate, rate capping and the averaging of valuations before rates are assessed.

“The Valuer-General will shortly commence consultation with stakeholders, including local governments, regarding next year’s valuation program, as they do each year.”

Cr Stewart ventured to Brisbane with Gympie Mayor Glen Hartwig to meet Mr Stewart to discuss the land valuation increases.

The Valuation of Land Act, which outlines the valuation process, stipulates that every local government area must be revalued at least once every five years. Since 2002 Noosa has been valued on 10 occasions, including in 2022 and 2023.

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An aerial view of Tewantin, where Noosa Council is based.

As land valuations are used by councils to calculate rates in Queensland, councillors and residents are concerned about the impact the doubling of valuations in some part of the shire will have.

“The minister made it clear that there wasn’t much that could be done, however I encourage residents who feel aggrieved to lodge an objection to the Queensland Valuer-General’s office,” Cr Stewart said.

“It doesn’t make sense why we had to face another round of land valuations, particularly with the added pressure of the valuation occurring in an extremely volatile market.

“With the softening of property demand being experienced in the area, the state may need to subsequently reverse some of these increases in future years, indicating these increases may not have been necessary this year.”

The average land valuation increase determined by the Queensland Valuer-General was 62 per cent.

But nearly 2000 properties across Noosa were hit with an increase in valuation above 100 per cent. A further 400 had a 200 per cent jump and 15 properties are above 300 per cent.

About 2000 properties in Noosa had a comparatively low valuation increase of under 30 per cent.

“It’s not just owners of properties in the more expensive areas facing increases, it’s homeowners right across the shire who have seen their land valuations jump,” Cr Stewart said.

She said that, like the community, council was working in a heightened market with CPI (consumer price index) at record levels.

“We are facing enormous challenges to keep rates increases below CPI levels and these valuations present even more difficulties for us to ensure equitable rating outcomes for every single property experiencing a valuation increase,” she said.

Article source: Queensland Property Investor