Valuing rural vs non-rural land

Land is valued land depending on whether the land is zoned as:

• rural land, undisturbed and in its natural condition – this is valued using unimproved value
• non-rural land (urban land, rural-residential land, land that’s not zoned) – this is valued using site value.

Eligibility for rural land

An owner of land may apply for the land to be declared rural for statutory land valuation purposes if both these criteria are met:

• at least 95 per cent of land in the state is used for the same purposes as other land zoned rural
• the land’s zoning as non-rural makes a material difference of at least 30 per cent to the statutory valuation of the land, if it were valued as rural.

Unimproved land (including farmland)

All rural land is valued as unimproved land. This land is valued as if it’s in its natural, undisturbed state, without any structural or land improvements. The valuation considers surrounding infrastructure and the value of similar rural sales and their respective potential.

Farming land may be eligible for a concessional valuation if it meets the eligibility criteria. A concessional valuation reflects the value of the land based on its farming production.

Non-rural land (including residential, commercial and industrial land)

We use site value to determine the value of urban land (including rural residential land).

Our valuers prefer to use vacant land sales to determine site value, if possible. If there are improvements on the land (a house, fences, other structures), our valuers don’t include those in their assessment of the property value.

Undertaking site improvements

If you make improvements to your land, you may be able to deduct the added value of certain improvements from your valuation. This may decrease your rates or land tax. If you’ve made and paid for any eligible site improvements within the past 12 years, you may be eligible for a deduction.

Site improvements can include things like:

• clearing vegetation and removing stones from the land
• improving soil fertility or structure
• managing or remediating contamination (if the land was contaminated land as defined under the Environmental Protection Act 1994)
• filling, grading or levelling the land to restore or rehabilitate
• reclaiming land through draining, filling or installing retaining walls
• underground drainage.

Site value does not include:

• structural improvements like buildings, houses, sheds, fencing, dams, landscaping
• gardening or beautification through pruning or removing trees
• excavations or pools, spas, ponds, underground car parks or building foundations
• irrigation or conservation works
• services like water and sewerage, and the associated pipes and excavation.