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Valuations - NSW Changes

Discussion in 'Accounting & Tax' started by Paul@PFI, 7th Oct, 2016.

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  1. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Here is a copy of information I received from a valuer...This may affect taxation valuations and the bold section below may be important. You cant just use a real estate agent.

    When instructing a property valuer please note registration of NSW valuers ceased from 1 March 2016. This happened with the repeal of the Valuers Act 2003.

    Reasons for the change

    Ending registration for valuers follows the recommendation of the Independent Pricing and Regulatory Tribunal report - Reforming licensing in NSW. The change brings NSW in line with most other Australian states and territories. It also supports NSW Government initiatives to remove unnecessary business regulation, helping to lift productivity and drive down costs for businesses and consumers.

    Legislative changes
    There are various amendments to other NSW legislation that previously referred to a registered valuer. All amendments are listed in the Regulatory Reform and Other Legislative Repeals Act 2015, which can be accessed from the NSW Legislation website.


    For the purpose of legislation the following persons are considered suitably qualified to provide evidence of the value of property or consideration:

    1. a member of the Australian Valuers Institute (other than an associate or student member), or

    2. a member of the Australian Property Institute (other than a student or provisional member), who has acquired membership in connection with his or her occupation as a valuer, or

    3. a member of the Royal Institution of Chartered Surveyors who holds the designation “Chartered Valuer” or “Chartered Valuation Surveyor”.
     
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    This is a cynical move to remove regulation (costing $hundreds/yr) by requiring the valuer to join the professional associations which cost $'000s annually.

    So you can no longer complain to Fair Trading about your valuer but to the employer's association - hmmmm. Great protection for the consumer.
     
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  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    I see it differently. Those bodies regulate their membership so Fair Trading are ceasing duplication. They already has requirements that "registered valuers" had to possess qualifications anyway. Its also likely other states may follow
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    @Paul@PFI - membership of a professional association was not previously mandatory for their valuation qualification to be recognised for them to produce valid valuations - like lawyers, many qualify but few practice law or are active members of the society.

    Valuers follow the international standards for valuations with some local adaptation and are impacted by accounting standards as you are aware.

    The role of valuers has in many instances been dumbed down by the advancement of computer modelling for asset management where figures produced by non-valuers using modelling such as Yardi, Cougar etc are taken in favour of valuations where the assumptions are reviewed and understood.
     
  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    For income tax purposes a valuation must be performed by someone suitably qualified and experienced. I would consider a persons credentials based on membership commence to satisfy that test and their experience is a further element. Even then the report may need to be capable of being understood for the objective basis used to determine the value or it may be discarded.

    A property valuer shouldnt value a non-land owning business for example. ATO views are broad but clear : Market valuation for tax purposes
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Suitably qualified and experienced valuers undertake plant and machinery valuations, retail lease vals or partial interests.