Victorian Consolidated Legislation

Valuation of Land Act 1960 - SECT 2

Definitions

2. Definitions



(1) In this Act unless inconsistent with the context or subject-matter-

area means the territory within which a rating authority levies rates or
taxes;

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; Commissioner means Commissioner of State
Revenue under the Taxation Administration Act 1997;

council has the same meaning as in the Local Government Act 1989;



estimated annual value of any land, means the rent at which the land might
reasonably be expected to be let from year to year (free of all usual tenants'
rates and taxes) less-

   (a)  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

   (b)  the land tax that would be payable if that land was the only land its
        owner owned;

farm land means any rateable land-

   (a)  that is not less than 2 hectares in area; and

   (b)  that is used primarily for grazing (including agistment), dairying,
        pig-farming, poultry-farming, fish-farming, tree-farming, bee-keeping,
        viticulture, horticulture, fruit-growing or the growing of crops of
        any kind or for any combination of those activities; and

   (c)  that is used by a business-

   (i)  that has a significant and substantial commercial purpose or
        character; and

   (ii) that seeks to make a profit on a continuous or repetitive basis from
        its activities on the land; and

   (iii) that is making a profit from its activities on the land, or that has
        a reasonable prospect of making a profit from its activities on the
        land if it continues to operate in the way that it is operating;

general valuation means a valuation of all the rateable land in the area of a
rating authority or in any one or more subdivisions of such an area and
includes any valuation made pursuant to subsection (2) of section eight of
this Act;

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;

mortgage includes every charge upon land which is registered under any Act
relating to the registration of deeds or instruments affecting title to land,
and includes a transfer or conveyance to a registered building society,
subject to a deed of defeasance in favour of a borrower;

* * * * *





net annual value of any land, means-

   (a)  except in the case of the lands described in paragraphs (b) and (c)-

   (i)  the estimated annual value of the land; or

   (ii) five per centum 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 centum of the capital improved value of the land; or

   (c)  in the case of parklands, reserves or other lands owned by the Crown
        or any statutory authority, occupied (other than under any lease) for
        pastoral purposes only-the estimated annual value of it;

owner in relation to any land, means the person who is entitled to receive the
rack-rent for the land or who, if the land were let at a rack-rent, would be
entitled to receive the rent;

Part means Part of this Act;

prescribed means prescribed by this Act or by regulations under this Act;

rating authority means-

   (a)  any council in respect of its powers under any Act;

   (b)  any Authority under the Water Act 1989;

* * * * *

   (d)  Melbourne Water Corporation;

   (e)  the Minister responsible for administering section 139 of the
        Water Industry Act 1994, when exercising the power to levy rates under
        that section;

   (f)  the Commissioner;

   (g)  any other authority which levies rates or taxes and is prescribed for
        the purpose by proclamation of the Governor in Council published in
        the Government Gazette;

* * * * *





residential use land means any rateable land-

   (a)  which is a unit or self-contained dwelling-house used solely for
        residential purposes; and

   (b)  which is situated in the municipal district of a council in which
        rates are levied in whole or in part on the site value of rateable
        land; and

   (c)  the site value of which, or in the case of a unit, the site value of
        the larger property of which the unit forms a part, has been declared
        by a valuer responsible for making valuations within the municipal
        district concerned to have been materially increased by reason that it
        is suitable for development or further development which is allowed by
        or pursuant to any relevant planning scheme;

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; transmission easement has the same
meaning as in the Land Tax Act 2005;





transmission easement holder has the same meaning as in the Land Tax Act 2005;





unit means-

   (a)  a unit on a registered plan of strata subdivision subject to Schedule
        2 to the Subdivision Act 1988; and

   (b)  a stratum estate within the meaning of the Transfer of Land Act 1958;
        and

   (c)  a building or part of a building in the exclusive occupation of a
        person who is entitled to occupation by virtue of being a shareholder
        in a company which owns the building or a tenant of such a
        shareholder; and

   (d)  a residential unit in respect of which a residence right in a
        retirement village under the Retirement Villages Act 1986 is in force;





urban farm land means any farm land the site value or net annual value of
which has been declared by the valuer appointed by the Council to make the
general or supplementary valuation to have been materially increased-

   (a)  by reason of its proximity to land which has been or is being
        developed for residential, industrial, commercial or other urban
        purposes; or

   (b)  by reason of its proximity to land which has been or is being
        subdivided into allotments used or intended to be used predominantly
        for recreational or residential purposes-

and on which in the opinion of the valuer any farming operations would be
ancillary to the predominant use of the land.

(2) In estimating the value of improvements on any land for the purpose of
ascertaining the site value of the land, the value of the improvements is the
sum by which the improvements upon the land are estimated to increase its
value if offered for sale on such reasonable terms and conditions as a genuine
seller might in ordinary circumstances be expected to require.

(2AA) Works relating to a port, being buildings, breakwaters, berths, wharfs,
aprons, canals or associated works are improvements within the meaning of this
Act.

(2A) In determining the estimated annual value of any land, the rent at which
the land might reasonably be expected to be let from year to year is to be
taken to be the annual rent at which the land might reasonably be let at the
usually prevailing terms and conditions.

(3) 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.

(4) If it is necessary to determine the site value of a unit described in
paragraph (a) or (b) of the definition of unit in subsection (1), subsection
(3) applies, and a unit forms part of a larger property which is the land
comprised in the strata subdivision.

(5) If it is necessary to determine the capital improved value or site value
of a lot or lots on a registered cluster plan subject to Schedule 2 to the
Subdivision Act 1988, the rateable land includes any interest in common
property and accessory lots, but does not form part of a larger property.

(6) Despite anything in this Act or the Local Government Act 1989, the capital
improved value and the site value of any rateable land which is, or part of
which is, land which is the subject of a covenant under subsection (1) of
section 3A of the Victorian Conservation Trust Act 1972 is calculated on the
basis that the owner of the land is bound by that covenant as to the
development or use of the land or part of the land.

(7) If any area of land which is not less than 4 hectares in size is planted
after the commencement of the Forests Act 1907 with trees approved of by the
Secretary within the meaning of the Conservation, Forests and Lands Act 1987
as being suitable for mining or commercial purposes, and those trees are
planted not more than 3 metres apart from each other, in computing the net
annual value or capital improved value of that area of land, the increase in
the value of the area of land by reason of the trees planted on it must not be
taken into consideration.

(8) Despite anything in this Act or the Local Government Act 1989, the capital
improved value, net annual value and site value of any rateable land which is
a registered place within the meaning of the Heritage Act 1995 or on which
there is situated a building which is included in the Heritage Register
established under that Act must be calculated on the basis-

   (a)  as to the part actually occupied by the building included in the
        Heritage Register established under the Heritage Act 1995-

   (i)  that the land may be used only for the purpose for which it was used
        at the date of valuation; and

   (ii) that all improvements on that land as at the date of valuation may be
        continued and maintained in order that the use of the land referred to
        in subparagraph (i) may be continued; and

   (iii) that no improvements, other than those referred to in subparagraph
        (ii), may be made to or on that land; or

   (b)  as to any part (not actually occupied by the building which is
        included in the Heritage Register and which is not land that is
        included in the Heritage Register) that the building which is included
        in the Heritage Register cannot be removed or demolished and that any
        land referred to in paragraph (c) must not be subdivided or developed
        unless a permit to subdivide or develop the land has been granted by
        the Heritage Council; or

   (c)  as to any land that is included in the Heritage Register established
        under the Heritage Act 1995 that the land cannot be subdivided or
        developed or if a permit to subdivide or develop the land has been
        granted by the Heritage Council, that it can be subdivided or
        developed only in accordance with that permit.

(9) If-

   (a)  a planning scheme under the Planning and Environment Act 1987
        prohibits the pulling down or removal of a building; or

   (b)  a planning scheme under the Planning and Environment Act 1987 provides
        that a permit is required before a building may be pulled down or
        removed and-

   (i)  the responsible authority has refused to grant a permit; or

   (ii) the Administrative Appeals Tribunal or the Victorian Civil and
        Administrative Tribunal has directed that no permit issue- then
        despite anything in the Local Government Act 1989 or this Act the
        capital improved value, net annual value and site value of any
        rateable land that includes the building must be calculated on the
        basis that the building cannot be pulled down or removed.





(10) Despite anything in this Act or the Local Government Act 1989-

   (a)  the capital improved value and site value of any parklands, reserves
        or other lands owned by the Crown or any statutory authority which are
        occupied (otherwise than under any lease) for pastoral purposes only
        are twenty times the net annual value; and

   (b)  the capital improved value and site value of unused roads and water
        frontages licensed under the Land Act 1958 or any corresponding
        previous enactment are twenty times the annual licence fee payable for
        them under that Act.