The date of valuation for the previous GRV assessment for the metropolitan area was 1 August 2012. It came into effect on 1 July 2014.
In 2012 Western Australia was at the peak of the resources boom and one of the economic powerhouses of the Australian economy. At this time the WA economy was growing rapidly. In 2011-12 the economy grew 9.1 per cent and growth in the two subsequent years was more than five per cent. Western Australia experienced rapid population growth, rising wages and low unemployment.
The date of valuation for this current GRV revaluation is 1 August 2015; coming into effect on 1 July 2017.
The economic conditions in 2015 were quite different to 2012. The pace of growth in Western Australia eased in 2015. Gross State Product grew just 3.5 per cent, lower than the average 5.3 per cent of the previous 10 years. A fall in commodity prices such as iron ore, impacted on mining investment and revenue. Wages declined and at 1.3 per cent, our population growth was half the annual average growth of the preceding 10 years. Unemployment increased with the trend unemployment rate for WA rising to 6.5 per cent in 2015; the highest rate since early 2002. Prior to the Global Financial Crisis 2007/08 unemployment was around 2.7 per cent.
The softened economic condition is reflected in the GRV. Most properties have seen either a reduction or just a marginal increase since the last date of valuation, although there was a consistent increase in GRV for vacant land. GRV for vacant land is calculated as three per cent of the land value for residential land and five per cent of the land value for commercial, industrial and farming vacant land.
Any further deterioration in the economy since 1 August 2015 has not influenced the assessment of the new current GRV.