The Australian Valuation Office (AVO) will cease to provide services by 30 June 2014.
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.
The losses are forecast to get worse 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.
On top of 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.
The Parliamentary Secretary to the Treasurer, Steven Ciobo, said he paid tribute to those who have worked in the AVO. The organisation has a rich history and has assisted organisations over many years to meet policy outcomes and financial reporting requirements.
The Australian Taxation Office will work with affected employees and manage the wind-down period for the organisation, with up to 198 staff to be offered redundancies.