SA’s controversial property revaluation program has been halted

Some commentators said it was potentially worse than the state government’s land tax plans. Now the plan to revalue property in SA has been halted.

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The Valuer General’s controversial “revaluation initiative” has been put on hold for a year due to the unprecedented turmoil caused by the coronavirus outbreak and the state’s bushfires.

The revaluations, which aim to increase the accuracy of property valuations across the state, were dubbed “the elephant in the room” last year by former Property Council president Steve Maras.

The concern was that many property owners would be hit with a significant increase in the assessed value of their property or properties, which would come with a commensurate increase in taxes and charges.

Maras Group managing director Steve Maras.

The first cycle, which took in the Unley and Walkerville metropolitan areas and the Adelaide Plains primary production area, was completed last financial year, and the Valuer General said “the majority of changes were within 0-10 per cent positive or negative movement’’.

Phase two, which was to reflect market values at January 1 this year, with the data released on July 1, has now been delayed until 2021-22.

“As at the Date of Valuation this year, South Australia and Australia were experiencing

significant turmoil as a result of bushfires, which horrific events affected so many people and

also represented great uncertainty in economic terms,’’ the Office of the Valuer General said in a statement.

“We have been working with Authorities on adjusting the value of property directly impact by those Bushfires. The economic uncertainty that was evident as at the Date of Valuation has been clarified in light of more recent events across the world. I don’t believe it can be said too often that these are unprecedented times.’’

The Valuer General said having considered all the options, it was decided that a delay was appropriate.

Business SA director, policy and advocacy Andrew McKenna said it was a welcome move.

“Business SA had long argued for a delay and we welcome the South Australian Valuer General’s temporary freeze on implementing the Re-valuation Initiative in 2020/21 and

adopting a commonsense approach in face of unprecedented economic conditions,” Mr McKenna said.

“The uncertainty from COVID-19 was only going to put further pressure on property owners and tenants if updated valuations from the Re-valuation Initiative were imposed.

“While the annual revaluation will continue as per normal, the moratorium means updated property values from the latest cycle of the Revaluation Initiative will not be implemented in the 2020/21 financial year.’’

Property Council Of Australia executive director for SA Daniel Gannon said it was a compassionate and sensible decision.

“This decision will allow property owners to recover from COVID-19 and the impact of the summer bushfires,’’ he said.

Property Council of Australia South Australia executive director Daniel Gannon.

“The Property Council has long been a vocal critic of the Revaluation Initiative and recently raised this issue with Premier Steven Marshall, seeking its deferral until economic circumstances permit.

“Given site and capital values are both impacted as part of the project, it acts as a trigger for higher council rates, land tax bills and other levies which makes living and doing business much harder at the moment.’’

Treasurer Rob Lucas said the Valuer General made decisions independently and it was understandable that the program would be deferred during the current difficult times.