Valuation of Land Regulations 2020

The regulations revolve around several key concepts drawn from the Act. “Annual value” is defined in section 5(1) of the Act, and regulation 4 adds to that definition by prescribing certain classes of machinery, plant and equipment that must be included in the assessment of annual value. This includes items integral to a building’s operation - heating, cooling, ventilation, fire protection, lifts, elevators and escalators that are permanently fixed. The concept is economically significant because annual value is the basis for many rates and land tax calculations, so specifying what counts directly affects the tax base. “Fixtures and improvements not to be included in valuations” (regulation 10) excludes other items that might otherwise be part of the land for valuation purposes. The test is often whether the item is capable of removal without structural damage. Equipment used in a trade or business that is not fixed, or is fixed but removable without structural damage, is excluded. Public utility infrastructure on land occupied by the utility is also excluded. Trees are excluded if planted for one of four enumerated purposes, meaning standing timber for commercial harvest or environmental purposes is not valued. The concept of “review of valuation” is procedurally important: an owner who has objected and received a determination may apply for a review under section 25B of the Act. Regulation 7 prescribes the form (Form 2), and regulation 8 gives the owner the right to select the valuer from a list supplied by the Valuer General. This is a notable feature - it places a degree of control in the hands of the landowner over who conducts the review, rather than leaving selection entirely to the Valuer General. “Notice of sale or transfer of title to land” (regulation 9) requires the transferor (or transferee) to give the Valuer General written notice within 30 days of completion, using Form 3, providing details such as consideration, valuation number, title reference and parcel identifiers. This obligation feeds the valuation database with transaction data, which is used to update valuations. The “objection period” concept under regulation 5 is critical: a rate notice, land tax assessment or similar document that contains valuation particulars must prominently state the 60 day objection period and the notes about prior notices and previous objections. Without that statement, the document is not a valid valuation notice, which may affect the running of time for objections and potentially extend the period in which an owner can challenge a valuation. Finally, “panels of land valuers” (regulation 6) establishes the nomination process for appointing valuers to review panels. Only the Real Estate Institute of South Australia Inc or the Australian Property Institute Inc may nominate, and only upon application by a valuer. This creates a gatekeeper role for those two bodies, potentially limiting competition among valuers seeking panel appointments.

The regulations impose duties and confer rights on a range of persons and entities. Landowners are the most directly affected. They have the right to object to a valuation within 60 days (if the notice includes the required statement), and they may apply for a review of a valuation after an objection determination. The review application (Form 2) must include a detailed statement of grounds, rental details and a valuation breakdown. Crucially, the owner selects the valuer to conduct the review from a list supplied by the Valuer General, which gives landowners a degree of control over the process but also imposes the burden of making an informed selection. Landowners also have a duty to notify the Valuer General of any sale or transfer of land within 30 days of completion, using Form 3. Failure to comply may expose the owner to penalties under the Act (not specified in the regulations themselves). The prescribed form requires considerable detail - volume/folio, plan numbers, area, consideration, mortgage details - which adds to compliance costs for lay owners, though conveyancers and solicitors typically handle this. The regulations also affect owners of commercial and industrial property whose plant and equipment may or may not be included in valuations. For example, a factory owner with machinery bolted to the floor may find that machinery excluded if it can be removed without structural damage, but lifts and air conditioning are included. Public utilities (electricity, gas, water, sewerage providers) benefit from the exclusion of their infrastructure from valuation for most purposes, but face a specific inclusion for electricity generating plant and substations used by proclaimed bodies under the Electricity Corporations Act when rates under the Local Government Act are being assessed. This means local councils can rate those assets, increasing the tax burden on those utilities. Electricity generators and transmission entities must therefore check whether their plant falls under the exclusion or the inclusion. Timber growers and land managers benefit from the exclusion of trees planted for commercial timber production, land degradation prevention, effluent disposal or wildlife habitat - this reduces the taxable value of land used for forestry or environmental purposes, which may encourage such uses. Local councils are affected because they rely on valuations to set rates. The exclusions shrink the rate base, potentially increasing rates on other properties, while the inclusion of certain electricity plant adds to the rate base for some councils. The Valuer General must supply lists of panel valuers and process nominations. The two professional bodies (Real Estate Institute and Australian Property Institute) hold the power to nominate valuers, which creates a potential bottleneck or barrier to entry for independent valuers who are not members of those bodies. Valuers seeking panel appointments must apply to one of these bodies and meet the application requirements: full name, business address, qualifications, experience generally, and experience in the relevant region. The nominating body may refuse to nominate if not satisfied that there is no reason why the applicant should not be nominated, which gives these bodies discretion and could be exercised anti-competitively.

The regulations create a number of specific duties and rights. The most significant duty is that of a transferor (or in some cases the transferee) to give notice of a sale or transfer of land to the Valuer General within 30 days after completion, using the prescribed Form 3 and providing the specified particulars (regulation 9). This duty is owed to the state and supports the maintenance of the valuation roll. The right that balances this is the right to object to a valuation. Regulation 5 provides that a rate notice, land tax assessment or similar document that contains valuation particulars does not constitute a valid notice of valuation under section 23(1) of the Act unless it includes a statement of the 60 day objection period plus the two notes (about prior notices and previous objections). This is actually a right disguised as a procedural requirement - it ensures that landowners are informed of their objection rights and prevents the clock from starting if the statement is missing. If an owner never receives a compliant notice, the time to object may never begin, effectively extending the right to challenge. Another important right is the right to apply for a review of a valuation under section 25B of the Act, using Form 2 (regulation 7). The owner must state the grounds for review, the values as determined and the contended values, and provide rental details and a detailed valuation breakdown. This is a substantive right to have a second look at the valuation by an independent valuer from the panel. Regulation 8 gives the owner the right to select the valuer to conduct the review from a list supplied by the Valuer General. This is unusual - normally the selecting body chooses the reviewer. The owner must advise the Valuer General in writing of their choice. This right gives landowners agency in the process, but also imposes a choice cost: they must decide which valuer is likely to be competent. The duty of the Valuer General is to supply the list promptly. The right of a land valuer to be appointed to a review panel is mediated by regulation 6. A valuer may apply to the Real Estate Institute of South Australia Inc or the Australian Property Institute Inc for nomination. Those bodies have a duty to nominate if satisfied that there is no reason why the applicant should not be nominated. They must use Form 1 and send it to the Minister. This gives the bodies a quasi-regulatory gatekeeping power. A valuer has no right to be nominated if the body decides otherwise, though the regulation does not specify grounds for refusal beyond “no reason why the applicant should not be nominated”. This creates a risk of arbitrary exclusion. The right of a landowner to be informed of the valuation is also reinforced: regulation 5 ensures that the document must contain the objection statement; otherwise it is not a notice of valuation. That means the owner cannot be deemed to have received the valuation if the document is defective. The duty of councils and other rating authorities is to ensure their rate accounts include the required statement, or else they risk not triggering objection periods and potentially losing the ability to rely on the valuation as final.

The regulations themselves do not create penalties or enforcement mechanisms. Penalties are found in the principal Act, the Valuation of Land Act 1971. For example, section 29(2) of the Act (not reproduced in the regulations) likely imposes a penalty for failing to give notice of sale or transfer as required by section 29(1) and the regulations. The regulations prescribe the form and particulars for such notice (Form 3), so non compliance with the form requirements may constitute an offence under the Act. The source does not specify the amount or nature of penalties, but typical provisions involve a monetary penalty expressed in penalty units. Practitioners should check the Act for current penalty amounts. Enforcement is likely by the Valuer General or authorised officers, with prosecution in the Magistrates Court. There are no express penalties for nominating bodies that fail to nominate a valuer without good reason, or for the Valuer General failing to supply a list - those duties are administrative and may be subject to judicial review if breached, but the regulations do not attach a penalty. Similarly, there is no penalty specified for a rating authority that sends a rate notice without the required objection statement. However, the consequence is that the document does not constitute a valid notice of valuation, which means the objection period does not start and the valuation may be challengeable at a later time. This is a de facto enforcement mechanism: the legal effect of a defective notice is nullified, incentivising compliance. The regulations also do not create a private right of action for landowners if a valuer appointed to a panel is incompetent or biased. The review process is administrative, and the owner’s remedy is to apply for a further review or appeal under the Act. In terms of enforcement against valuers, the regulations do not address professional misconduct, but the Act may provide for removal from a panel. The nomination bodies have an ongoing role and may presumably withdraw a nomination, though not specified in these regulations. The transitional provisions (Schedule 2) preserve applications made under the old regulations, ensuring continuity and avoiding gaps in enforcement of existing processes.

The Valuation of Land Regulations 2020 sit under the Valuation of Land Act 1971, and their operation is limited to matters delegated by that Act. They directly interact with a number of other South Australian statutes. Most importantly, the valuations produced under the Act and regulations are used for the raising of rates under the Local Government Act 1999, land tax under the Land Tax Act 1936, and possibly other imposts such as emergency services levies. Regulation 10(2) specifically provides that electricity generating plant and substations used by bodies specified by proclamation under the Electricity Corporations (Restructuring and Disposal) Act 1999, and situated on land subject to a proclamation under that Act, must be taken into account for the purpose of local government rates. This overrides the general exclusion in regulation 10(1)(b) for public utility infrastructure. The interaction with the Electricity Corporations Act is therefore critical: the Minister’s proclamations determine which bodies and land are subject to this inclusion, affecting the rate base for councils and the tax burden on electricity generation assets. The regulations also interact with the Land Title practice and the Real Property Act 1886. The notice of sale or transfer (Form 3) requires the volume/folio or book/page reference to the title, as well as plan numbers and allotment details. This information ties the valuation roll to the Torrens title system, enabling the Valuer General to update valuations upon transfer. The requirement to give notice within 30 days of completion complements the duty of the Registrar General to register transfers, though the regulations do not align the notice period with the registration timeline - notice is due upon completion, not registration. There is also interaction with the Taxation Administration Act 1996 or similar legislation for land tax collection, though not explicit in the regulations. The exclusion of trees planted for commercial timber production (regulation 10(1)(c)) interacts with the Timber Industry legislation and potentially with the Forestry Act 1950, as it affects the valuation of forestry land. By excluding such trees, the regulations reduce the taxable value of land used for commercial forestry, which may be a deliberate policy to encourage that industry. The exclusion of trees for land degradation prevention or wildlife habitat may interact with the Native Vegetation Act 1991 or environmental schemes. The exclusion of equipment used in trade or business that is not fixed or is removable without structural damage (regulation 10(1)(a)) interacts with the law of fixtures as developed at common law and in property law. What constitutes “structural damage” may be litigated in the context of other statutes (e.g., the Landlord and Tenant Act 1936 or the Security of Payments Act). The regulations do not define “structural damage” further, so courts will apply established principles. The nomination of valuers to panels (regulation 6) interacts with the professional standards applicable to valuers under the Australian Property Institute and the Real Estate Institute, and possibly with the Valuers Act or similar if South Australia has one (source does not indicate). Finally, the regulations sit alongside the Valuation of Land Regulations of other states, but there is no direct interaction.

The Valuation of Land Regulations 2020 were made on 23 July 2020 and published in the South Australian Government Gazette on that date (Gazette 23.7.2020 p3862). They came into operation on 24 August 2020 (regulation 2). They revoked and replaced the Valuation of Land Regulations 2005 (regulation 2 of Schedule 2). The legislative history notes indicate that the regulations are the principal regulations under the Act. There are no subsequent amendments shown in the source. The transitional provisions (Schedule 2, Part 3) ensure that any application, nomination or notice made under the 2005 regulations that corresponds to a provision of the 2020 regulations, and whose effect had not been exhausted by 24 August 2020, is taken to have been made under the new regulations. This avoids the need to re do existing administrative steps. The forms in Schedule 1 have been updated from the previous regulations, but the changes appear to be minor - the forms themselves carry the 2020 date. The source does not include a detailed comparison with the 2005 regulations, so practitioners should check whether any substantive changes occurred in the definition of annual value (regulation 4) or the exclusions (regulation 10) compared to the previous regulations. Given that the 2005 regulations had been in force for 15 years, and the Act itself has been amended over time (including the insertion of section 25A and 25B), the new regulations likely reflect those amendments. The source does not include any amending regulations, so as far as the text shows, the 2020 regulations remain unamended.

The source provides no litigation history or case references. The regulations themselves are procedural and ministerial, so they are unlikely to be the subject of direct litigation. However, they may be considered in cases involving challenges to valuations under the Act. For example, a landowner might argue that a rate notice did not contain the required objection statement under regulation 5, and therefore the notice did not constitute a valid notice of valuation, affecting the time limit for objection. A court would then interpret regulation 5 and whether the statement used in the document substantially complied. Similarly, disputes could arise over whether a particular fixture falls within the exclusion in regulation 10(1)(a) - for instance, whether a piece of machinery is “capable of being removed without structural damage” and whether the damage is “minor or trivial”. The phrase “minor or trivial structural damage” is not defined, so it may be litigated. There could also be cases concerning the exercise of discretion by the nominating bodies under regulation 6, if a valuer claims they were wrongly refused nomination. Judicial review of an administrative decision to refuse nomination could be brought. The source does not cite any such cases, so a practitioner would need to search South Australian case law and the decisions of the South Australian Civil and Administrative Tribunal (SACAT) or the Supreme Court for valuation appeals. The regulations themselves do not create a right of appeal; appeals are governed by the Act. Overall, the litigation history is not provided and cannot be assumed.

Several provisions contain traps for the unwary. First, regulation 5: a rate notice or land tax assessment that includes valuation particulars will not constitute a notice of valuation for the purpose of triggering the objection period unless it contains the exact statement set out in the regulation, including the two “BUT NOTE” paragraphs. If a council or authority sends a notice with a less prominent statement, or that paraphrases the objection period, the document may be legally ineffective as a valuation notice. This means the owner may never be deemed to have received the valuation, and the time to object may never start running. However, the flip side is that the owner might miss the objection period if they receive a compliant notice but overlook the statement. The note about prior notices is also important: if the owner previously received a notice under the same Act referring to the valuation and informing them of a 60 day objection period, the objection period runs from that first notice, not the current one. So an owner who ignores earlier notices may lose the right to object. Also, a previous objection by the same person to the same valuation bars a further objection - so an owner cannot object twice. Second, regulation 8 gives the owner the right to select the valuer for a review, but the owner must advise the Valuer General in writing of the selection. If the owner does not advise in writing, or if they simply assume the Valuer General will assign a valuer, the review may be delayed or not proceed. The owner also bears the cost of selecting the valuer - they must make an informed choice from the list, which may require research. Third, Form 2 (application for review) contains a note: “Notwithstanding this review, the rate of tax assessed on the valuation must be paid by the due date.” This is a trap: many landowners may assume that lodging a review suspends the obligation to pay. It does not. Tax must be paid on time or late payment penalties may apply, regardless of the review outcome. Fourth, regulation 9 requires notice of sale or transfer within 30 days after completion. “Completion” is not defined, but it likely refers to settlement. If the transfer is not registered within 30 days, the notice is still due 30 days after completion. Failure to give notice may expose the transferor to a penalty under the Act. The form must be completed in full, or the note says “This notice will not be accepted unless all the details below are supplied.” An incomplete form may be rejected, and the transferor may be in breach. Fifth, the exclusion of fixtures in regulation 10 is broad but contains exceptions. Electricity generating plant and substations used by specified bodies (under the Electricity Corporations Act) are specifically included for local government rates. An entity that assumes all its power generation equipment is excluded may find itself surprised when a council rates it. Similarly, the exclusion for trees requires proof of purpose - “planted for the primary purpose of” one of the listed purposes. If trees were planted for multiple purposes, only two or more of the specified purposes qualify. If the primary purpose was aesthetic, the exclusion does not apply. Sixth, the nomination process for valuers (regulation 6) only permits nomination by two bodies. A valuer who is not a member of either body cannot be nominated. This can be a barrier to entry for independent valuers. Even if a valuer is a member, the body must be satisfied that there is no reason why the applicant should not be nominated. That discretion could be exercised arbitrarily. Finally, the transitional provisions (Schedule 2) preserve applications made under the old regulations, but only where the new regulation “substantially corresponds” to the old one. If there is a discrepancy, the old application may be invalid, so practitioners should check if a current matter started under the 2005 regulations still has effect.

Compliance with the Valuation of Land Regulations 2020 involves several distinct steps depending on the role of the person or entity. For landowners receiving a rate notice or land tax assessment that includes valuation particulars, the first step is to check whether the notice contains the mandatory statement under regulation 5 - a clear statement of the 60 day objection period, and the two notes about prior notices and previous objections. If the statement is missing or incomplete, the notice may not constitute a valid valuation notice, but the landowner should still object in writing to the Valuer General within the time they would have had if the statement were present, to avoid losing rights. If the statement is present and the landowner wishes to object, they must do so within 60 days of service. Service is defined in the Act - typically by post. If the objection is disallowed, the landowner may apply for a review using Form 2 in Schedule 1, which must be completed fully with the valuation number, the determined and contended values, a detailed statement of grounds, and rental details if the premises are let. The form must be signed and, if signed by an agent, a written authority from the owner must be attached. The landowner then selects a valuer from the list supplied by the Valuer General (regulation 8) and advises the Valuer General in writing. Despite the review, the landowner must continue to pay rates and taxes on the due date. For a sale or transfer of land, the transferor must give notice to the Valuer General within 30 days of completion using Form 3. The form requires a considerable amount of detail: date of contract/transfer, consideration, mortgage details, valuation number, title reference (volume/folio and plan allotment), area, names and addresses of transferor and transferee, and signatures. The form notes that it will not be accepted unless all details are supplied. A diagram is required if a portion only of a lot or section is being transferred. Compliance is often handled by conveyancers, but the duty rests on the transferor. For land valuers seeking appointment to a valuation review panel, the valuer must apply in writing to either the Real Estate Institute of South Australia Inc or the Australian Property Institute Inc, setting out their full name, business address, qualifications, general experience, and experience in valuing land in the relevant region (regulation 6). The body must then nominate the valuer using Form 1 if satisfied there is no reason not to. If the body refuses, the valuer has no right of appeal under these regulations. For rating authorities (councils, the RevenueSA), the key compliance obligation is to ensure that any account, assessment or notice that includes valuation particulars contains the statement required by regulation 5. Failure to do so may result in the notice being ineffective for triggering objection periods, potentially extending the time for objections and creating administrative difficulties. For public utilities and electricity generators, the entity must determine whether its plant falls within the exclusion in regulation 10(1)(b) (mains, poles, transformers, pipes, etc.) or the inclusion in regulation 10(2) (electricity generating plant and substations used by proclaimed bodies). If the plant is subject to inclusion, the entity should expect to be rated on the value of that plant by local councils. The entity should also verify whether any proclamations under the Electricity Corporations Act apply to its land and assets. For timber growers and landholders with trees planted for commercial timber, land degradation, effluent disposal or wildlife habitat, they should ensure they can evidence the primary purpose of planting to support a claim that those trees should be excluded from the valuation. The exclusion applies only to trees planted for one of those primary purposes (or two or more of them), not for aesthetic or other purposes. If the landowner receives a valuation that appears to include the value of such trees, they should object and provide evidence of the planting purpose. Finally, all stakeholders should be aware of the transitional provisions. Any application, nomination or notice made under the 2005 regulations that has not been exhausted remains effective under the 2020 regulations, but only if the new provision substantially corresponds. If in doubt, it is prudent to resubmit under the new forms.