The NSW agency responsible for the State's land valuation system has achieved a stunning trifecta with a move to more in-house valuations saving taxpayers $1.7 million in its first year while delivering valuations faster and to a higher quality standard.
Value NSW previously used external contractors but has transitioned to a hybrid delivery model to boost service and reduce costs. The hybrid model is forecast to save taxpayers a further $28 million between now and 2031.
In March 2024, Value NSW moved land valuations for four regions in-house: Central Tablelands, North Coast NSW, Hunter Coast and Sydney Coast North. Since then, Value NSW has completed almost 800,000 land valuations in-house, saving $1.7 million that would have otherwise been incurred if these valuations were outsourced.
From March 2025, Value NSW will transition another four regions in-house: Sydney Coast South, South Coast NSW, Sydney Central West and South East Regional NSW.
Following this transition around 1.5 million valuations will be done annually in-house, at a combined value of about $1.4 trillion. External contractors will deliver around 1.2 million further valuations to a combined value of $1.6 trillion.
Land values are used by the NSW Government to assess land tax and for local councils to assess rates.
Supplementary valuations, which occur when properties are subdivided or boundaries change, are also being completed two days faster by in-house staff compared to contractors.
The transition has not resulted in any net job losses with Value NSW employing extra staff to make it NSW's largest valuation employer of almost 300 people, 52% of whom are based in regional areas. The move to in-house valuations aligns with a NSW Government directive to reduce reliance on contractors while building public sector capacity and capability.
Minister for Lands and Property Steve Kamper said:
"Value NSW and its staff have become true value adders for our state with more skilled public servants now serving the public faster, to a higher standard and saving taxpayers money.
"This balanced model of both in-house and contract valuers will ensure diversity, competition and innovation in our land valuation system, which underpins almost 10% of our annual state revenue."
Value NSW Chief Executive Officer Stewart McLachlan said:
"This is a great result, designed and delivered by public servants and is a credit to the delivery focus of our team at Value NSW. I'm confident these benefits will continue into the future as the model expands."
