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Australian Valuation Office

Investigation report 11

This AGCNCO investigation report was released on 21 May 2004.

The investigation resulted from a complaint that the pricing regime used by the Australian Valuation Office (AVO) in tendering situations systematically fails to adequately reflect the full costs of service provision. The complainant claimed that the AVO’s pricing fails to adjust for a number of key cost advantages which accrue from its position within the ATO, including:

  • access to resources such as IT and telecommunications at reduced rates
  • reduced commercial rents, accommodation search costs and fit-out costs as a result of being co-located with the ATO
  • diminished search and compliance costs in relation to professional indemnity insurance, given AVO’s 'government' status.

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Contents

Preliminaries
Cover, Copyright, Competitive neutrality policy, Contents

Chapter 1 The complaint
1.1 Nature of the complaint
1.2 CN status of the AVO

Chapter 2 Assessment of issues

2.1 Is the AVO a stand-alone business?
2.2 The AVO’s cost base
2.3 Rate of return issues and the AVO
2.4 Findings

References

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