The Secretary to the Department of Home and Territories has forwarded for advice the following memorandum:

Section 10, Seat of Government Acceptance Act 1909 (amended 1910⁽¹⁾) reads [in part] as follows:

Provided that, in determining the compensation to which the owner is entitled under that Act⁽²⁾), the value of the land shall be taken not to exceed the unimproved value of the land, or the interest therein of the owner, on the eighth day of October, One thousand nine hundred and eight, together with the value of his interest in the improvements on the land at the date of the acquisition of the land. Section 3, (sub-section (1)) of Rates Ordinance 1911-1920 reads as follows:

The unimproved capital value of land (other than land held as described in sub-section 2 of this section) is the capital sum which the fee simple of the land might be expected to realize if offered for sale on such reasonable terms and conditions as a bona fide seller would require assuming that the improvements (if any) thereon or appertaining thereto and made or acquired by the owner or his predecessor in title had not been made.

I shall be glad to be favoured with your advice as to whether under the Rates Ordinance 1911-1920-

1. The unimproved capital value of 1908 for rates assessment purposes must be adhered to so far as unacquired lands are concerned;
2. In regard to acquired lands held under lease, whether there is authority to assess the unimproved value of these lands at their present unimproved value disregarding the unimproved value in 1908.

In my opinion the present unimproved value of the land is, in both the cases mentioned above, the proper basis for the assessment of rates under the Rates Ordinance 1911-1920. It may happen that the present value of the land will be seriously influenced by the probability or possibility of future acquisition, by the Commonwealth, of that or other land; but whether that probability or possibility enhances or depreciates the present value, it is that present value on which the rates must be assessed.

[Vol. 19, p. 34]

(1)By the Seat of Government (Administration) Act 1910, section 10.

(2)The Lands Acquisition Act 1906.