PIONEER CONCRETE (VIC) PTY LTD v COMMISSIONER OF STATE REVENUE (VIC)

Judges: Tadgell JA

Batt JA
Chernov JA

Court:
Victorian Court of Appeal

MEDIA NEUTRAL CITATION: [2001] VSCA 55

Judgment date: 2 May 2001

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Batt JA

23. I agree that this appeal should be disposed of as Tadgell, J.A. proposes for the reasons his Honour gives. To determine the hypothetical selling price in the open market of the real property the subject of the transfer on the date of actual sale in the abstract, that is, without reference to the restrictions which the actual vendor was able to impose, is, I have come to think, mechanistic and artificial. Compare, in a somewhat different context, Promenade Investments Pty. Ltd. v. State of New South Wales . ^[23] (1992) 26 NSWLR 203 at 228-229; s.l.r. 176 CLR 704n. It is understandable that encumbrances in the sense of security interests are to be disregarded in the ascertainment of the open market value of real property: they do not affect the inherent value of the real property. Restrictions of the kind here in question, on the other hand, do that very thing.