The role of the Valuer-General in the calculation of compensation for expropriation: A comparative analysis between South African and Australian law

Abstract

Abstract Property valuations have always played an important role in the calculation of compensation for expropriation. The shift from market-based compensation towards just and equitable compensation prescribed by s 25 of the South African Constitution poses important questions as to the role of a valuation in calculating compensation for property expropriated for land reform purposes. The Property Valuation Act of 2014 established the Valuer-General to determine the value of these properties according to the formula reserved for the determination of just and equitable compensation, leading to contestation regarding its role in determining compensation. Recent case law clarified that the valuation does not prevent the Minister from paying compensation that differs from the value determined by the Valuer-General nor does it bind the courts when called on to determine compensation under s 42 D of the Restitution Act. The role of the Valuer-General remains unclear when expropriation proceedings are initiated by the state. This article analyses the function of statutory valuation bodies in Australian law to determine compensation for compulsory acquisition as persuasive authority to further guide the interpretation of the Property Valuation Act.