On March 26, 2024, the Queensland Valuer-General issued a total of 675,000 new land valuations spanning some 712,000 square kilometres across 20 local government areas (LGAs).
These valuations are in turn used to calculate state land tax for leasehold land and are also a significant factor used by local governments to inform their rates.
Among the 20 new valuations some of the steepest were in rural areas, where values have gone up 117 to 254 per cent. These rises have again raised concerns about the impact of rate rises on farmers who are already impacted by a range of increased costs of production across their operations.
The state's Valuer-General has outlined several factors that have led to these increases including a high demand for land, high net migration, and an increase in infrastructure projects along with high commodity prices and some favorable seasons between 2020 and 2022.
On one hand, the 2024 rural valuations tell a positive story for Queensland agriculture and regional communities.
Rising land values, however, also have some negative flow on effects including making it more difficult for first time farmers to enter the market and impacting on things like family farm succession planning.
As rural land values continue to rise, potential issues caused by the flow on impact land valuations have on rates is an ongoing concern for many landholders.
If history is anything to go by this latest round of valuation increases will result in increased rates. But does it have to?
Councils have a range of tools at their disposal to ensure valuations do not unfairly burden ratepayers and to manage valuation spikes and how they choose to apply valuations to their rating book.
From a bigger picture perspective, many Queensland councils are struggling with their own financial viability, due in part, to cost shifting from state and federal government, and at times the private sector, as services have withdrawn from communities.
While the roles and responsibilities of local government have grown significantly over time, its revenue base has not.
A current federal inquiry is examining the sustainability of local councils. QFF will submit that the federal allocation of Commonwealth Tax Revenue allocation to local councils should be increased.
If councils are fairly funded to undertake the essential services relied upon by their constituents, this will reduce the over reliance many councils have on local rates as their primary source of funding and give them more wriggle room when it comes to rate setting strategies.
QFF continues to advocate for the mandatory adoption of the state government developed Equity and Fairness in Rating for Local Governments Guideline across all LGAs.
This would increase the transparency and fairness of council rating processes and support consistency of decision-making processes across the state.
Landholders who wish to discuss their valuation or lodge an objection can call the valuation hotline on 1300 664 217. Objections must be made by May 27, 2024. Learn more here: https://www.qld.gov.au/environment/land/title/valuation/objections/lodge-objections
