Market interest rates

Valuations need to reflect an open market interest rate. The use of negotiated commercial rates, 'in-house' finance rates, or special discounted rates may not be appropriate because these rates are not reflective of open market rates, but instead specific to a particular entity or a set of circumstances.

ATO position

Valuers need to apply appropriate interest rates at the date the property is to be valued. These rates should reflect commercially available rates supported by evidence from within the industry at that point in time or, alternatively, based on the rates published by the Reserve Bank of Australia (RBA).

    Last modified: 27 May 2014QC 25319