Are you a developer? If so you may be entitled to deductions for site improvements off your statutory valuation
The Valuer-General recently began issuing statutory valuations for all land in Queensland.
Deductions for site improvements now apply for all land valued using the Site Value methodology, which is all residential and commercial land that is not zoned rural.
As a land owner, you should consider whether you may be eligible for a deduction off the applied Site Value for site improvement works necessary to prepare the land for development.
Deductions for site improvements apply for works that increase the value of the land, including:
- clearing vegetation;
- works to manage or remediate contaminated land under the Environmental Protection Act 1994;
- restoration or remediation works that improve the land’s surface, which can include filling, grading, levelling or retaining walls;
- reclamation works including reclaiming land by draining or filling;
- underground drainage; and
- any other works needed to improve or prepare it for development.
Site improvements do not include any building or associated works, such as excavation for footings, car parks or landscaping and drainage for building works.
If you believe that your site valuation does not adequately reflect deductions for site improvements, you can lodge a Deduction for Site Improvements claim (DSI).
To be eligible for the deductions the land owner must:
- have paid for the site improvements within the past 12 years;
- owned the property when the site improvements were paid for; and
- still own the property.