When assessing 'capital value' under the Valuation of Land Act 1971 (SA), a valuer is not required to disregard all existing leases. A lease is an encumbrance only if it impairs the value of the fee simple; where leases enhance value (as with income-producing commercial property), the valuer must have regard to the leases and rental income, and capital value means market value in the Spencer v The Commonwealth sense. The earlier approach requiring vacant possession assumptions for all leased property is rejected as inconsistent with the legislative intent and commercial reality.
The full text is available to signed-in members, including the 10 later cases that cite this judgment.
2 of the 10 citing cases carry a classified treatment. How each court treated it is available to signed-in members.