Law unto themselves,NSW Govt will continue taxing heritage properties despite court ruling

by StreetCorner 24/11/2009

The NSW Government has introduced legislation into parliament to overturn a court decision in that ruled the Value General had overvalued and therefore overtaxed heritage properties.

This is the second time this year that the government has changed legislation when a court decision has not been its favour. The NSW Government also changed legislation when the High Court of Australia ruled in favour of small landowners in Parramatta, against the attempt by Parramatta Council to acquire land

from small owners, for the Council to then sell onto a large developer. Respect for court rulings is a key pillar of democracy and ensures the protection of citizens against both individuals and governments but the NSW Government is increasingly ignoring the rulings of courts on issues of fairness and instead is changing laws to ensure either developers (in the case of the Parramatta development) and their tax receipts are protected. The Liberals also backed the legislation introduced by the NSW Government to overturn the High Court decision so it remains to be seen if they will again back the Government on the heritage building ruling.

The Urban Taskforce’s chief executive, Aaron Gadiel, said that the Valuation of Land Amendment Bill 2009 weakens a key element of the state’s land tax and council rating scheme designed to protect heritage property owners.

“This will impact on the rights of owners of 44,000 heritage properties,” Mr Gadiel said.

“Most owners of heritage restricted properties are average families, who have no right to demolish the building on their land and erect a new one in its place.

“Usually, the requirement to retain an existing building for heritage reasons reduces the development potential of land, and therefore, reduces the true value of the land.

“The law currently recognises this – and to calculate land tax and council rates heritage affected land must be given a reduced valuation to reflect the limitations on future development.

“Since an owner can’t demolish a building, it’s wrong to impose taxes and rates, on the basis that demolition was possible.”

These special rules were re-affirmed by three judges of the NSW Court of Appeal in June this year.1

The court decision also found that the Valuer-General had wrongly assessed the value of heritage properties, leading to excessive tax and rate bills for property owners.

“Now the state government wants to overturn the court decision, re-write the rules to disadvantage heritage property owners and excuse up to nine years of unlawful conduct by the Valuer-General,” Mr Gadiel said.

“Now the government wants the Valuer-General to assume that a heritage property owner is entitled to build an entirely new pristine building, in the place of a heritage structure.

“Ordinary families who own a heritage listed home should not be taxed based on a right they do not have.

“This will only further reduce the incentives for someone to buy such a heritage property and restore it.

“We hope that this legislation is blocked by the opposition and minor parties.”

Report Post