Professional news round-up

The API's December professional news round-up

National Licensing

The following extract is part of a COAG communiqué released last Friday:

NATIONAL OCCUPATIONAL LICENSING SCHEME

COAG noted that, following the outcome of extensive State-based consultation, the majority of States decided not to pursue the proposed National Occupational Licensing Scheme reform. Most jurisdictions identified a number of concerns with the proposed NOLS model and potential costs. States instead decided to investigate approaches that would increase labour mobility and deliver net benefits for businesses and governments.

To this end, States agreed to work together via the Council for the Australian Federation (CAF) to develop alternative options for minimising licensing impediments to improving labour mobility and to manage the orderly disestablishment of the National Occupation Licensing Authority from early 2014.

Project Related Site Assessment

The Australian Valuation Standards Board has considered the matter of a project related site assessment and has agreed that:

  • A market value should be provided to lenders for mortgage purposes

  • A project related site assessment can be included in the body of a valuation report. It is not the valuation figure and should not be included in the section of the report stating the market value figure

  • There may be instances where the project related site assessment is the same as market value
  • Please note this matter was previously discussed in an article in the March 2012 edition of the Australia and New Zealand Property Journal.

    Self Managed Super Funds

    The API recently made a submission to the ATO regarding the valuation of real property assets within Self-Managed Super Funds (SMSF). The API is concerned that current ATO guidance, which does not require real property assets within funds to be valued by a qualified valuer, could have significant implications that have been outlined to the ATO.

    The API’s submission reiterated our rigorous standards for ongoing professional development, qualifications, ethics and professional indemnity insurance. The ATO was also reminded that API members were subject to a disciplinary process and could provide fund holders with a level of protection not provided elsewhere in the market place.

    The API believes that any real property put into a SMSF should be subject to a valuation carried out by a suitably qualified professional on entry into the fund and also when audits are required. We will continue to keep members informed of any progress on this issue.

    International Valuation Standards

    As advised in the November edition of the Property News, IVS 2013 is effective from 1 January 2014. Please refer to the API website for further information.