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- 6 June 2007
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A word of caution to landlords with commercial property exposure in Queensland. Anna Bligh is looking to pass a piece of legislation (the Valuation of Land and Other Legislation Amendemnt Bill) that will change the definition of 'unimproved land' to include intangible value created by landlords such as the value of tenants leases etc. This will have the effect of increasing the statutory assessment on which the annual land tax charge is calculated!
Even more worryingly for landlords, this will retrospective, affecting all valuations since June 2002.
So in one fell swoop, Bligh will be undoing many decades of valuation principles and put Queensland out of step with the rest of Australia.
The net impact will a decrease in commercial valuations due to the increase annual land tax charge. Some commentators are speculating on a 20% valuation impact (I have not seen the sums).
Crazy decision IMO and will ensure that capital flows out of Queensland as investors look for a more stable regulatory regime.
Cheers B'man
(Source: AFR)
Even more worryingly for landlords, this will retrospective, affecting all valuations since June 2002.
So in one fell swoop, Bligh will be undoing many decades of valuation principles and put Queensland out of step with the rest of Australia.
The net impact will a decrease in commercial valuations due to the increase annual land tax charge. Some commentators are speculating on a 20% valuation impact (I have not seen the sums).
Crazy decision IMO and will ensure that capital flows out of Queensland as investors look for a more stable regulatory regime.
Cheers B'man
(Source: AFR)
