Valuer-General of New South Wales v Oriental Bar Pty Limited [2016] NSWCA 48

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Valuer-General of New South Wales v Oriental Bar Pty Limited [2016] NSWCA 48 Hearing dates: 4 February 2016 Decision date: 22 March 2016 Before: Basten JA at [1]; Simpson JA at [42]; Sackville AJA at [43] Decision: 1. Appeal allowed. 2. Cross-appeal dismissed. 3. Set aside Orders 3 and 4 made by the Land and Environment Court on 8 May 2015 in Proceedings 14/30010 and 14/30011. 4. Set aside Orders 3 and 4 made by the Land and Environment Court on 8 May 2015 in Proceedings 14/30012 and 14/30339. 5. Set aside Orders 3 and 4 made by the Land and Environment Court on 8 May 2015 in Proceedings 14/30013 and 14/30014. 6. In lieu of the Orders referred to in Order 3, make an order pursuant to s 40(1)(a) of the Valuation of Land Act 1916 (NSW) that determinations of land value of the property situated at 701 George Street, Haymarket (Mountbatten Property) for the base dates of 1 July 2010 and 1 July 2012, issued by the Valuer-General on 11 November 2013 be confirmed. 7. In lieu of the Orders referred to in Order 4, make an order pursuant to s 40(1)(a) of the Valuation of Land Act 1916 (NSW) that determinations of land value of the property situated at 358-387 Sussex Street, Haymarket (Star Property) for the base dates of 1 July 2010 and 1 July 2012, issued by the Valuer-General respectively on 11 November 2013 and 21 January 2014 be confirmed. 8. In lieu of the Orders referred to in Order 5, make an order pursuant to s 40(1)(a) of the Valuation of Land Act 1916 (NSW) that determinations of land value of the property situated at 198-200 Elizabeth Street, Haymarket (Triple Ace Property) for the base dates of 1 July 2010 and 1 July 2012, issued by the Valuer-General on 11 November 2013 be confirmed. 9. The respondents/cross-appellants pay the costs of the appellant/cross-respondent of the appeal and cross-appeal. Catchwords: VALUATION OF LAND – heritage listed property – unimproved land value – relationship between s 6A(1) and s 14G(2) of the Valuation of Land Act 1916 (NSW) – Valuer-General's determination affected by error as to gross floor area (GFA) – primary Judge makes finding that land value higher than Valuer-General's determination on the basis of correct GFA – whether primary Judge erred in subsequently adjusting land value downwards – whether sale price of comparable property had to be adjusted to take account of value added by a development consent for that property – whether sale price of comparable property should be adjusted to take account of GST – whether primary Judge double counted "land improvements" Legislation Cited: A New Tax System (Goods and Services Tax) Act 1999 (Cth), ss 38-325, 75, 135-5 Land and Environment Court Act 1979 (NSW), s 19(b), s 57. Valuation of Land Act 1916 (NSW), ss 4(1), 6A, 14A, 14B, 14G, 37(1) Valuation of Land Amendment Act 2000 (NSW) Valuation of Land and Local Government (Amendment) Act 1959 (NSW) Cases Cited: Barber v Valuer-General (1969) 17 LGRA 409 Commonwealth Custodial Services Ltd v Valuer General [2007] NSWCA 365; 156 LGERA 186 Federal Commission of Taxation v MBI Properties Pty Ltd [2014] HCA 49; 254 CLR 376 Holcim (Australia) Pty Ltd v Valuer-General [2009] NSWLEC 225 House v The King [1936] HCA 40; 55 CLR 499 Johns v Australian Securities Commission (1993) 178 CLR 408 Leichhardt Council v Roads and Traffic Authority (NSW) [2006] NSWCA 353; 149 LGERA 439 Leichhardt Municipal Council v Seatainer Terminals Pty Ltd (1979) 40 LGRA 353 Maurici v Chief Commissioner of State Revenue [2003] HCA 8; 212 CLR 111 McGeoch v Federal Commissioner of Land Tax (1929) 43 CLR 277 McKee v Valuer-General [1971] NZLR 436 Minister for Immigration and Citizenship v Li [2013] HCA 18; 249 CLR 332 Minister for Immigration and Ethnic Affairs v Gungor (1982) 63 FLR 441 Minister for Immigration and Multicultural Affairs v Thiyagarajah (2000) 199 CLR 343; [2000] HCA 9 Minister for Immigration and Multicultural Affairs v Thiyagarajah (FCAFC, unrep, 4 March 1998) Minister for Immigration and Multicultural Affairs v Wang (2003) 215 CLR 518; [2003] HCA 11 Oriental Bar Pty Ltd v Valuer-General [2015] NSWLEC 59 Owners of Ship 'Shin Kobe Maru' v Empire Shipping Co Inc (1994) 181 CLR 404 Storage Equities Pty Ltd v Valuer-General [2013] NSWLEC 137; 94 ATR 431Toohey's Ltd v The Valuer General [1925] AC 439; (1925) 25 SR(NSW) 75 Trust Company of Australia Ltd v Valuer-General [2007] NSWCA 181; (2007) 154 LGERA 437 Valuer-General v Commonwealth Custodial Services Ltd [2009] NSWCA 143; 74 NSWLR 700 Valuer-General v Fenton Nominees Pty Ltd [1982] HCA 46; 150 CLR 160 Valuer-General v Fivex Pty Ltd [2015] NSWCA 53; 206 LGERA 450 Valuer-General v In Adam Pty Ltd [2012] NSWCA 20; (2012) 211 LGERA 75 Wishart v Fraser (1941) 64 CLR 470 Category: Principal judgment Parties: Valuer-General of New South Wales (Appellant/Cross-Respondent) Oriental Bar Pty Limited (First Respondent/Cross-Appellant) Michael James Courtney (Second Respondent/Cross-Appellant) Starburst Pty Limited (Third Respondent/Cross-Appellant) Kelly Group Investments Pty Limited (Fourth Respondent/Cross-Appellant) Surfside Pty Limited (Fifth Respondent/Cross-Appellant) Dylcote Pty Limited (Sixth Respondent/Cross-Appellant) Bondtren Pty Limited (Seventh Respondent/Cross-Appellant) Representation: Counsel: Ms S Duggan SC / Mr R White (Appellant) Mr I Hemmings SC/ Ms A Pearman (Respondent)