To support communities affected by the recent summer bushfires, Lithgow City Council has accepted an offer from the Valuer-General to receive a new valuation list for 1 July 2020 land values.
Since 1 July 2019 land values were determined, many communities have been
devastated by the summer bushfires.
The 1 July 2019 land values recently issued to councils were determined before the recent bushfires occurred. This means that the values do not reflect any impact of the fires. Many residents have suffered property damage, lost homes, businesses and farm buildings since the 1 July 2019 land values were determined.
Property sales evidencing the impact of the bushfires in the year to date are currently limited. The Valuer-General has commissioned a study of the impact of previous bushfires on land values in NSW which will form the basis for a 1 July 2020 revaluation.
Analysis indicates that there are three variables to be considered when determining the impact of bushfires on 1 July 2020 land values, being:
- the number of properties destroyed as a proportion of the total number of properties in the locality;
- the prevailing level of demand for vacant land in the locality before the bushfires; and
- the specific location of the subject property within the locality.
In the circumstances of the recent bushfires, the Valuer-General concluded that a reduction in the existing 1 July 2019 land values by up to 30% is appropriate depending on an assessment of the above three key variables in each locality.
It is important to note that changes in land value from the 1 July 2020 revaluation will be effective for the rating year commencing on 1 July 2021.