Australian Capital Territory Numbered Regulations Australian Capital Territory Numbered Regulationsinsert
Schedule 2A Buyback program valuation procedure
(see s 214)
2A.1 Definitions—sch 2A
In this schedule:
"Asbestos Response Taskforce" means the Asbestos Response Taskforce established by the ACT government in June 2014.
"assessment day" means 28 October 2014.
"reasonable value", of an affected lease, means the value of the lease, including the improvements, assuming that the lease, including the improvements, were offered for sale on the open market on the assessment day on the reasonable terms and conditions that a genuine seller might require.
Note Affected lease —see s 212.
2A.2 Valuation as at assessment day, not including asbestos etc
(1) Two valuations of the reasonable value of an affected lease must be carried out.
(2) The affected lease, including the improvements, must be valued as at the assessment day.
(3) A valuation must not have regard to—
(a) the presence of loose-fill asbestos insulation at the affected residential premises on the affected lease; or
(b) minor maintenance work needing to be carried out on the affected residential premises on the affected lease as at the assessment day; or
(c) minor maintenance work or cosmetic improvements carried out on the affected residential premises on the affected lease after the assessment day.
2A.3 Accredited valuers to carry out valuation
(1) Each valuation of the reasonable value of an affected lease must be carried out by a valuer who is—
(a) an accredited valuer; and
(b) independent of the other valuer carrying out a valuation of the affected lease; and
(c) independent of the territory and the lessee.
(2) Each valuer must be selected by the Australian Property Institute Incorporated (ABN 49 007 505 866).
2A.4 Valuation to be given to lessee and Asbestos Response Taskforce
A valuer who carries out a valuation of the reasonable value of an affected lease must give a copy of the valuation to—
(a) the lessee of the affected lease; and
(b) the Asbestos Response Taskforce.
2A.5 Presidential determination—request by Asbestos Response Taskforce
(1) This section applies if the Asbestos Response Taskforce is given 2 valuations of the reasonable value of an affected lease.
(2) If the difference between the valuations is 10% or more, but less than 10.5%, of the lower valuation, the Asbestos Response Taskforce may ask for a presidential determination of the reasonable value of the affected lease.
Note Presidential determination —see s 2A.8.
(3) In deciding whether to ask for a presidential determination, the Asbestos Response Taskforce must consider—
(a) the views of the lessee of the affected lease; and
(b) the difference between the valuations; and
(c) the cost involved in obtaining a presidential determination.
(4) If the difference between the valuations is 10.5% or more of the lower valuation, the Asbestos Response Taskforce must ask for a presidential determination of the reasonable value of the affected lease.
(5) If the Asbestos Response Taskforce asks for a presidential determination, the Asbestos Response Taskforce—
(a) must tell the lessee; and
(b) is liable for the cost of the determination.
2A.6 Buyback program valuation
The buyback program valuation for an affected lease is worked out as follows:
V1+V2
2
V1 means the first valuation of the reasonable value of the affected lease.
V2 means the second valuation of the reasonable value of the affected lease.
2A.7 Presidential determination—request by lessee
(1) If a lessee of an affected lease rejects a buyback program valuation for the affected lease, the lessee may ask for a presidential determination of the reasonable value of the affected lease.
Note Presidential determination —see s 2A.8.
(2) If the lessee asks for a presidential determination, the lessee is liable for the cost of the determination.
2A.8 Presidential determination
(1) This section applies if the Asbestos Response Taskforce or the lessee asks for a presidential determination of the reasonable value of an affected lease.
(2) The president of the ACT Division of the Australian Property Institute Incorporated must appoint a valuer (a presidential valuer) to carry out a valuation (a presidential determination ) of the reasonable value of the affected lease.
(3) The presidential valuer must be—
(a) an accredited valuer; and
(b) independent of the valuers who carried out the valuations of the affected lease under section 2A.3; and
(c) independent of the Territory and the lessee.
(4) The lessee may give any information or material to the presidential valuer that the lessee considers relevant to the valuation—
(a) if the Asbestos Response Taskforce asks for the presidential determination—before the presidential valuer starts the presidential determination; or
(b) if the lessee asks for the presidential determination—at the time the lessee asks for the presidential determination.
(5) The presidential valuer must make a presidential determination in the same way as the valuations of the reasonable value of the affected lease were carried out.
(6) A presidential determination is binding on the lessee and the Asbestos Response Taskforce.
2A.9 Amount payable for surrender of affected lease
(1) This section applies if a lessee of an affected lease surrenders the lease under the buyback program.
(2) The amount payable to the lessee for the surrender of the affected lease is—
(a) if a presidential determination is made of the reasonable value of the affected lease—the reasonable value determined by the presidential determination; or
(b) in any other
case—the buyback program valuation for the affected lease.