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C09/1997 PROPERTY VALUATIONS - CASES TO BE SELECTED
DATE OF ISSUE: 13 FEBRUARY 1997
PROPERTY VALUATIONS - CASES TO BE SELECTED
The purpose of this Departmental Instruction is to provide guidance for the selection of income support cases to be sent to the Australian Valuation Office (AVO) for valuation of the properties.
2.AVO provide all valuations of property, business, farm or a sub-let portion of home for selected cases. For the 1996/97 financial year payment for the services provided by AVO is to be made based on a fee for service rather than through an agreed bulk payment which has applied in the past.
3. In addition the price per unit has been negotiated where the number of valuations falls within agreed parameters on the number of cases to be valued this year. Movements outside these parameters will increase the price per unit.
4.The report received from AVO on the cases currently processed this financial year shows a number of properties up to $50,000 that should not have been sent for valuation. These properties were assets of clients who are income tested with total assets well below the prescribed limit.
5.Since as explained the payment to AVO for this financial year is based on fee for service, it is very important that valuations are only requested for properties which are likely to affect the pension assessment.
6. Cases selected for the valuation should meet one of the following criteria:
- the pension is assessed under the assets test;
- the pension is assessed under the income test and the total assets are within $10,000 of the prescribed asset limit, or;
- the pensioner's estimate of the property appears to be grossly under stated/overstated and the total assets of the person are within $10,000 of their prescribed asset limit.
7.The contact officer for this DI is Ferri Ghazi on (06) 289 6436 and E-mail C-C-BD-10.