How is the UV determined on rural land?
Land outside town sites (in general, rural land, unless otherwise gazetted by the Local Government) is valued on an Unimproved Value (UV) basis; effectively in its original natural state. UVs are reviewed annually.
Predominantly one of two unimproved definitions are used to determine the UV depending on the property and location:
1. The first assumes the property is to be valued in its original ‘bush’ state without improvements.
2. The second generally applies to larger cropping and grazing properties, which are valued on the basis of 50% of their cleared overall value inclusive of clearing, fencing, pastures and waters, but excluding buildings. The 50% representing the current prescribed percentage set by Valuation of Land Amendment Regulations 2009.
There are certain exceptions where the UV is based on a statutory formula, such as a fixed rate per hectare or a multiple of the annual rent. These exceptions include mining tenements, leases of Crown Land under the Land Administration Act 1997 for the purpose of grazing, leases under agreement acts, and land held under the Conservation and Land Management Act 1984.