THE federal government will close down the Australian Valuation Office (AVO) by 30 June 2014, after more than a century of service.
The Parliamentary Secretary to the Treasurer, Steven Ciobo, said the AVO has delivered valuation services exclusively for the government since 1910 but has become unsustainable and is expected to incur losses of up to $4 million this financial year.
Ciobo said the losses are forecast worsen each year as the AVO’s revenue declines sharply due to technological changes in the valuation industry and government departments decreasing their use of the AVO’s services.
He said that in addition to the predicated losses, at least $1 million would have been required for the AVO to bring their IT equipment up to date.
“A compelling case for the Commonwealth providing its own valuation services no longer exists, particularly given there is a highly competitive market of private sector providers,” he added.
Ciobo paid tribute to those who have worked in the AVO and said the Australian Taxation Office will work with affected employees and manage the wind down period, with up to 198 staff to be offered redundancies.
The peak body for valuers, the Australian Property Institute (API) national president Tony Gorman said the API has begun working alongside the AVO and government.
Gorman said it was extremely sad news that the AVO is closing.
“The API wishes to meet with the federal government as a matter of urgency to work through how valuation work previously done by the AVO can be deployed throughout the valuation industry, thus creating employment opportunities for affected valuers,” he said.
Gorman added that the API plans to consult with the Australian Services Union to look at how valuers could be assisted during this difficult period.
Gorman encouraged former AVO valuers to contact the API divisional offices in each state for advice.
Property Review
