//
[2025] NSWLEC 1282
General information, not legal advice.
Land and Environment Court (NSW)
2025-05-01
Davidson AC
Original judgment source is linked above.
Zoe will write a short plain-English summary of this judgment and email it to you for free: what it was about, what the court decided and why. It can take up to a minute.
General information, not legal advice.
Or create a free account to save it and ask Zoe follow-up questions.
Source: NSW Caselaw (www.caselaw.nsw.gov.au). Converted to plain text by ZoeLaw. Not the official version.
Medium Neutral Citation: Ho-Group Australia Pty Limited v Valuer General of New South Wales [2025] NSWLEC 1282
Hearing dates: Conciliation Conference on 11 March 2025 and 15 April 2025
Date of orders: 01 May 2025
Decision date: 01 May 2025
Jurisdiction: Class 3
Before: Davidson AC
Decision: The Court orders:
(1) The appeal is upheld.
(2) Pursuant to s 40(1)(b) of the Valuation of Land Act 1916, the Land Value of Lot 1 in Deposited Plan 551401, known as 124 Walker Street, North Sydney NSW 2060 is determined to be $56,150,000 for the 1 July 2023 valuation year.
Catchwords: VALUATION APPEAL – land valuer – conciliation conference – agreement between the parties – orders
Legislation Cited: Land and Environment Court Act 1979 ss 19, 34
Valuation of Land Act 1916, Pt 4, ss 6A, 14A, 29, 35, 35AA, 35B, 35C, 37, 38, 39, 40
North Sydney Local Environmental Plan 2013
State Environmental Planning Policy (Housing) 2021
Texts Cited: North Sydney Development Control Plan 2013
Category: Principal judgment
Parties: Ho-Group Australia Pty Ltd (First Applicant)
Dexus Life Nominees Pty Limited (Second Applicant)
Valuer General of New South Wales (Respondent)
Counsel: L Waterson (First Applicant) L Walker (Solicitor) (Second Applicant) R White (Respondent) Solicitors: Beatty Hughes and Associates (Applicant) Minter Ellison (Second Applicant) Crown Solicitor of NSW (Respondent)
File Number(s): 2024/338494
Publication restriction: No
COMMISSIONER: The Applicant appeals the Valuer General’s Determination dated 26 July 2024 pursuant to s 37(1) of the Valuation of Land Act 1916 (Valuation Act) in respect of the valuation of the land value of the property legally described as Lot 1 in Deposited Plan 551401, 124 Walker Street, North Sydney NSW 2060 (Land).
The proceedings fall within Class 3 of the Court’s jurisdiction pursuant to s 19(b) of the Land and Environment Court Act 1979 (LEC Act).
The statutory power or function to be exercised in determining the proceedings are s 34(3)(a) of the LEC Act and s 40(1)(b) of the Valuation Act.
The Applicant appeals the determination of the Valuer General made on 26 July 2024 in respect of the objection made by the Applicant to the valuation of the land value of the land as of 1 July 2023.
Relevant features of the land are as follows:
The Land is a three street corner allotment and is square in shape, other than a splayed corner to Walker and Berry Streets. The natural topography of the land slopes down in an easterly and south easterly direction.
The Land contains an eastern boundary frontage of 31.24 metres to Walker Street, a northern splay frontage of approximately 43.40 metres to Berry Street and a western boundary frontage of 37.42 metres to Little Spring Street. The site area of the Land, as stated in Deposited Plan 551401, is 1,359 square metres.
The Land is situated within the commercial zoned area of the North Sydney CBD. Surrounding development comprises a mix of mid and high rise retail/commercial developments of varying age and construction style
At both the date the valuation was made (DVM) of 5 October 2023 and the valuation date of 1 July 2023, the Land was subject to the following planning controls.
(a) North Sydney Local Environmental Plan 2013, as amended, (b) North Sydney Development Control Plan 2013, (c) State Environmental Planning Policy (Housing) 2021.
The valuation objection and history of the appeal includes:
On 9 January 2024, the Chief Commissioner of State Revenue issued a Land Tax Assessment Notice to the Second Applicant conveying particulars of the Respondent’s valuation of the Land made in accordance with s 14A of the Valuation Act. The issued land value for the Land was $90,000,000.
On 31 January 2024, the First Applicant purchased the Land from the Second Applicant.
On 8 March 2024 the First Applicant, with the agreement of the Second Applicant, lodged an objection, to the issued land value for the 2023 valuing year contained in the Land Tax Assessment Notice, with the Respondent pursuant to s 29(3A) of the Valuation Act.
On 26 July 2024, pursuant to s 35B of the Valuation Act, the Respondent allowed the First Applicant's objection in relation to the 2023 valuation year pursuant to s 35B and issued a Notice of Determination to the First Applicant as required by s 35C of the Valuation Act. The Land Value was amended to $82,660,000.
On 12 September 2024, the First Applicant filed a Class 3 Application appealing the Respondent’s determination of its objection, within the required 60-day period pursuant to s 38(1) of the Valuation Act.
On 29 January 2025, the Second Applicant was joined to the proceedings by notice of motion granted by the Land and Environment Court.
On 5 February 2025, the Second Applicant filed a submitting appearance.
The Land Value contended by the First Applicant in the appeal for valuation year 1 July 2023 was $38,785,000
The Land Value contended by the Respondent in the appeal was $73,753,000.
6A Land value
(1) The land value of land is the capital sum which the fee-simple of the land might be expected to realise if offered for sale on such reasonable terms and conditions as a bona-fide seller would require, assuming that the improvements, if any, thereon or appertaining thereto, other than land improvements, and made or acquired by the owner or the owner’s predecessor in title had not been made.
(2) Notwithstanding anything in subsection (1), in determining the land value of any land it shall be assumed that—
(a) the land may be used, or may continue to be used, for any purpose for which it was being used, or for which it could be used, at the date to which the valuation relates, and
(b) such improvements may be continued or made on the land as may be required in order to enable the land to continue to be so used, but nothing in this subsection prevents regard being had, in determining that value, to any other purpose for which the land may be used on the assumption that the improvements, if any, other than land improvements, referred to in subsection (1) had not been made.
(3) Notwithstanding anything in subsection (1), in determining the land value of any land, being land in relation to which, at the date to which the valuation relates, there was a water right—
(a) the land value shall include the value of the right, and
(b) it shall be assumed that the right shall continue to apply in relation to the land.
(4) For the purpose of determining the value of a water right, the value of any water secured by, or referable to, that right is to be ignored.
Part 4 Appeals to Land and Environment Court
Division 1 Appeals
37 Right of appeal
(1) Any person entitled under Part 3 to object to a valuation may appeal to the Land and Environment Court if the person is dissatisfied with the Valuer-General’s determination of any such objection to the valuation concerned (whether or not the person was the objector).
(2) An appeal may not be made on the ground that the objection is taken to have been disallowed, as referred to in section 35C (4), unless written notice of the objector’s intention to appeal on that ground has been given to the Valuer-General at least 14 days before the appeal is made.
(3) No person or body has jurisdiction or power to conduct a review or hear an appeal in respect of the determination of an objection except as provided by this Part.
38 Time for appeal
(1) An appeal must be made not later than 60 days after the date of issue of the notice of the Valuer-General’s determination of the objection.
(2) The Land and Environment Court may allow a person to appeal after the 60-day period.
39 Grounds of appeal
The appellant’s and respondent’s cases on an appeal are not limited to the grounds of the objection.
40 Powers of Land and Environment Court on appeal
(1) On an appeal, the Land and Environment Court may do any one or more of the following—
(a) confirm or revoke the decision to which the appeal relates,
(b) make a decision in place of the decision to which the appeal relates,
(c) remit the matter to the Valuer-General for determination in accordance with the Court’s finding or decision.
(2) On an appeal, the appellant has the onus of proving the appellant’s case.
The Court arranged a conciliation conference under s 34(1) of the LEC Act between the parties, which was held on 11 March 2025. I presided over the conciliation conference. The conciliation conference was adjourned until 15 April 2025 to allow the parties’ valuation experts to continue their discussions.
During the adjourned conciliation conference, the parties advised they had reached agreement as to the terms of a decision in the proceedings that would be acceptable to the parties. This decision involved determining the value of the land pursuant to s 6A of the Valuation Act and making a decision in place of the decision to which the appeals relate in relation to the 2023 valuing year pursuant to s 40(1) of the Valuation Act.
Under s 34(3) of the LEC Act, I must dispose of the proceedings in accordance with the parties’ decision if the parties’ decision is a decision that the Court could have made in the proper exercise of its functions. The parties’ decision involves the Court exercising the function under s 40(1) of the Valuation Act to “make a decision in place of the decision to which the appeal relates” in relation to the land value of the land as of 1 July 2023.
There are jurisdictional prerequisites that must be satisfied before this function can be exercised. The parties identified the proceedings fall within Class 3 of the Court’s jurisdiction pursuant to s 19(b) of the LEC Act and explained how the jurisdictional prerequisites have been met:
On 9 January 2024, the Chief Commissioner of State Revenue issued a Land Tax Assessment Notice to the Second Applicant. The Respondent's valuation notice for the 2023 valuation year, issued pursuant to s 29 of the Valuation Act was contained in that Land Tax Assessment Notice
At the time that the valuation notice for the 2023 valuation year was issued, the Second Applicant was the owner of the freehold estate in the Land (s 29(1)(a) of the Valuation Act).
On 31 January 2024, the First Applicant purchased the Land from the Second Applicant.
On 8 March 2024, the First Applicant, by agreement with the Second Applicant, lodged an objection to the 2023 Determination pursuant to s 29(3A) of the Valuation Act within the prescribed time for lodging an objection pursuant to s 35(1 )(b) of the Valuation Act. The valuation used as the basis of the land tax assessment had not been the subject of a prior objection, and as such, s 35AA of the Valuation Act did not apply.
On 26 July 2024, the Valuer-General allowed the First Applicant's objection in relation to the 2023 valuation year pursuant to s 35B and issued a Notice of Determination to the First Applicant as required by s 35C of the Valuation Act. The Land Value was changed to $82,660,000.
On 12 September 2024, the First Applicant lodged an appeal pursuant to s 37 of the Valuation Act in respect of the 2023 valuation year in this Court, within the 60-day period imposed by s 38(1) of the Valuation Act.
On 29 January 2025, the Second Applicant was joined to the proceedings by notice of motion granted by the Land and Environment Court.
On 5 February 2025, the Second Applicant filed a submitting appearance.
On 11 March and 15 April 2025, a conciliation conference was held under s 34(1) of the LEC Act, with Acting Commissioner Davidson presiding. The parties reached an agreement that Land Value as at the base date of 1 July 2023 should be $56,150,000.
The agreement reached between the parties to resolve the proceedings complies with s 40(1)(b) of the Valuation Act, in that the parties ask the Court to make decisions in place of the decisions to which the appeal relates, which are decisions that the Land and Environment Court has the jurisdiction and power to make.
For the reasons set out above, I am satisfied that the parties’ decision is one that the Court could have made in the proper exercise of its functions, as required by s 34(3)(a) and (b) of the LEC Act for the “disposal of proceedings in accordance with the parties’ decision”.
As the parties’ decision is a decision that the Court could have made in the proper exercise of its functions, I am required under s 34(3) of the LEC Act to dispose of the proceedings in accordance with the parties’ decision.
The Court notes:
The First Applicant and Respondent are to bear their own costs in relation to the proceedings.
The Court orders:
The appeal is upheld.
Pursuant to s 40(1)(b) of the Valuation of Land Act 1916, the Land Value of Lot 1 in Deposited Plan 551401, known as 124 Walker Street, North Sydney NSW 2060 is determined to be $56,150,000 for the 1 July 2023 valuation year.
**********
Ho-Group Australia Pty Limited
Valuer General of New South Wales [2025] NSWLEC 1282