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Developer Sirius has won its appeal against the outcome of objections it filed with the New South Wales Valuer-General over land tax.
The NSW Chief Commissioner of State Revenue issued two assessments of land tax for Lots 100 and 101 at 2-60 Cumberland Street at The Rocks, Sydney on February 17, 2023 and January 9, 2024.
The developer in August of this year completed the at-time controversial conversion of the Sirius building on a 3671.5sq m site, bordered by George, Cumberland and Gloucester streets, from public housing to luxury apartments.
Designed for the Housing Commission of NSW in 1978–1979 by commission architect Tao Gofers, the building is a prominent example of Brutalist architecture in Australia.
The former Coalition government in 2019 sold the former public housing block for $150 million to private investment firm JDH Capital.
The redevelopment comprises 76 high-end apartments, 60 of which were sold in 2021 for a reported $405 million.
The commissioner’s initial valuing for the land was at $105 million for the July 1, 2020 valuing year; $130 million for the July 1, 2021 valuing year; $148 million for the July 1, 2022 valuing year; and $155 million for the July 1, 2023 valuing year.
Sirius lodged objections to these assessments with the Valuer-General on April 18, 2023 and March 11, 2024.
The Valuer-General disallowed the objection to the valuations for 2020 but allowed the objections to the valuations for the 2021 and 2022 years on February 28 of this year. On June 18 the objection to the valuation for 2023 was allowed.
That left the land value as $105 million for July 1, 2020; $123.5 million for July 1, 2021; $131 million for July 1, 2022; and $131 million for July 1, 2023.
On April 29 of this year, Sirius filed appeals with the Land and Environment Court against the land value rulings for the 2020, 2021 and 2022 years. On August 12, it also filed an appeal against the land value ruling for 2023.
Valuations summary
| 2020 Valuation Year | 2021 Valuation Year | 2022 Valuation Year | 2023 Valuation Year | |
| NSW Chief Commissioner of State Revenue’s valuations | $105 million | $130 million | $148 million | $155 million |
| Valuer-General’s ruling valuations | $105 million | $123.5 million | $131 million` | $131 million |
| Sirius’ LEC application valuation | $62.8 million | $77.7 million | $88.5 million | less than $131 million |
| Sirius’ Contentions on Valuations Objection (COVO) valuation | no more than $87.7 million | no more than $96.6 million | no more than $101 million | no more than $90.9 million |
| Valuer-General’s valuations for the LEC appeal | $171.8 million | $185.3 million | $194.2 million | $194.4 million |
| LEC final ruling on valuations | $86.3 million | $90.6 million | $95.1 million | $88.4 million |
Source: NSW Land and Environment Court, 2024
Sirius proposed in its court application that the land value for 2020 was $62.8 million and no more than $87.8 million in its objections.
Similarly, the developer said that the 2021 land value was $77.7 million in its application and no more than $96.6 million in its objections, that the 2022 land value was $88.5 million in its application and no more than $101 million in its objection and that the 2023 land value was less than $131 million in its application and no more than $90.9 million in its objection.
The NSW Valuer-General was the respondent for the case and claimed that the land values for the land were $171.8 million for 2020; $185.3 million for 2021; $194.2 million for 2022; and $194.4 million for 2023.
A conciliation meeting was held with all parties on November 8, 2024 with the parties reaching an agreement on all four valuations, including a valuation of $88.4 million for 2023.
The agreement will lower the landowner’s tax bill.
