Valuation of property – suitably qualified valuer
Valuation of Property - suitably qualified valuer
Ruling number
|
DUT 044v2 |
Date issued
|
November 2023 |
Issued by
| Mandy Young
Chief Commissioner of State Revenue
|
Effective from
| 4 September 2023 |
Effective to
|
-
|
Status
| Current |
Preamble
- The Valuers Act 2003, which required persons practising as property valuers in NSW to be registered, has been repealed, effective 1 March 2016.
- As a consequence section 305 of the Duties Act 1997 (the Act) was amended to remove references to registered valuers and replace them with references to 'suitably qualified' valuers.
- Section 305 was omitted from the Act by the Revenue, Fines and Other Legislation Amendment Act 2023 and a similar provision was inserted in the Taxation Administration Act 1996 (“TAA”) as section 17A.
- This ruling sets out who the Chief Commissioner considers is ‘suitably qualified’ to provide a valuation of property for the purpose of 17A of the TAA. The previous version of this ruling should be used in circumstances where section 305 of the Act applied.
- It should be read in conjunction with Revenue Ruling DUT 012v4.
Ruling
Section 17A Valuation of Property
- Effective from 4 September 2023, section 17A(1) of the TAA states:
- The Chief Commissioner may, for the purpose of making an assessment of the tax liability of a taxpayer:
- require the taxpayer, by written notice, to provide evidence of the value of property that the Chief Commissioner considers appropriate, or
- obtain a valuation of property from a person the Chief Commissioner is satisfied is suitably qualified to provide evidence of the value of property, or
- rely on a valuation of property prepared for any purpose by a person the Chief Commissioner is satisfied is suitably qualified to provide evidence of the value of property.
Suitably Qualified Person
- For the purpose of section 17A of the TAA the following persons are considered suitably qualified to provide evidence of value of property:
- a member of the Australian Valuers Institute (other than an associate or student member), or
- a member of the Australian Property Institute (other than a student, MAPIi or provisional member), who has acquired membership in connection with their occupation as a valuer, or
- a member of the Royal Institution of Chartered Surveyors who holds the designation “MRICSii” or “FRICSiii” and may use the scheme designation “RICSiv Registered Valuer”, or
- another person approved by the Chief Commissioner in accordance with paragraph 8.
- The valuer’s qualifications and relevant membership number need to be shown in the valuation. For Electronic Duties Returns (EDR) clients the membership number, their name and the name of their company/firm will need to be inserted in the appropriate field for online assessments.
- The qualifications of any other person would need to be considered on a case by case basis by the Chief Commissioner. The acceptability of a valuation will ultimately turn on the valuation process undertaken, the detail of the evidence considered and the reasoning relied upon. This will be a factual question determined on a case-by-case basis.
- This ruling only deals with the professional qualifications of a person ‘suitably qualified’ to provide evidence of value of a property. In a particular case other qualifications may be relevant, for example, experience and expertise in valuing property of a particular kind, such as a hotel, mine or motorway.
Recovery of valuation costs
- Pursuant to section 17A(2) of the TAA, the Chief Commissioner may recover from the taxpayer the cost of obtaining a valuation if:
- the value of the property in such a valuation differs from the value provided by the taxpayer by at least 10%; or
- the taxpayer does not provide evidence of the value of property within 60 days after a written notice is issued by the Chief Commissioner requesting for such evidence.
iMember of the Australian Property Institute
iiMember of the Royal Institute of Chartered Surveyors
iiiFellow of the Royal Institution of Chartered Surveyors
ivRoyal Institution of Chartered Surveyors