51DHow is development value assessed?

51D How is development value assessed?

(1) For the purposes of section 51C(1)(a) or 51C(3)(b), the estimate of the site value of land to be subdivided is to be based on current market values as at the date of development as if the subdivision of the land had already occurred at that date.

S. 51D(2) amended by No. 48/2025 s. 73(7).

(2) For the purposes of section 51C(1)(b), the estimated cost of the building work on the land is to be based on the estimated cost, as at the date of development, of—

(a) in the case of a stand-alone subdivision, the average buildings that could reasonably be expected to be constructed on that land to give effect to the purpose of the subdivision; and

(b) in the case of a combined development, the construction of the buildings authorised by the planning permit for the development.

S. 51D(3) amended by Nos 10/2017 s. 25(1), 48/2025 s. 73(8).

(3) If, in the case of a combined development, the cost of the building work (calculated in accordance with section 3A of the Building Act 1993) for the development has been notified to Development Victoria under section 18A of the Building Act 1993 before the assessment of development value is made for the purposes of section 51X, development value for the purposes of section 51C(1)(b) is to be based on the cost of the building work (calculated in accordance with section 3A of the Building Act 1993) instead of the estimated cost of the building work.

(4) Subject to subsection (5), the site value of land for the purposes of section 51C(2)(a) or 51C(3)(a) is the most recent site value of the land determined under the Valuation of Land Act 1960 for the purposes of the Local Government Act 1989 as at the date of development.

(5) If land to be used for the development forms part of one or more parcels of land to which section 13DC(6) or 13DC(7) of the Valuation of Land Act 1960 applies and not all the land in those parcels is to be used for the development, then for the purposes of section 51C(2)(a) or 51C(3)(a), the site value of the land to be used for the development is to be the estimated site value of the land as at the date of development, based on the most recent site value of all the land in the parcels determined under the Valuation of Land Act 1960 for the purposes of the Local Government Act 1989.

S. 51E inserted by No. 35/2006 s. 7.