People needed to be given an incentive to move out of old inner areas where it was socially desirable to have renewal, according to the Australian Institute of Valuers and Land Economists.
For that reason, it said, betterment should be levied at something less than 100 per cent of the change in value as a result of change of land use.
It acknowledged the present system had been eroded because present law changed betterment according to the difference in the “”before value” under the old lease purpose and the “”after value” with a new lease purpose. The market value of the “”before value”, however, contained a component for potential redevelopment, so the difference between the two values had narrowed significantly.
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