The 1978 legislation provided for the establishment of a Valuer General's office. The latter's main objective is to provide a specialised valuation service for State Government agencies and local Government authorities. Prior to the Act taking effect the Commissioner of State Taxation supplied values to all local authorities except the City of Perth, the Metropolitan Water Board, and the Public Works Department. There was no legal hindrance to local authorities conducting their own valuation separate from the Commissioner for Taxation. A 'Valuation Bill' which provided for the establishment of an agency that would value and record all lands for 'the whole of the Taxing Authorities' of the state was passed by the Legislative Assembly but rejected by the Council, in 1913.

Between 1921 and 1970 many of the core functions of the Valuer Generals Office were performed by the Federal Taxation Department, following a State-Commonwealth agreement to that effect. In 1975 the 'Committee of Inquiry into Rates and Taxes attached to Land Valuation' saw the need for a central valuation authority which records and co-ordinates values and itself carries out valuations of property for all rating and taxation purposes. This committees recommendations formed the basis of the current legislation.

Pursuant to the Tax Collection Act 1920 the State and Commonwealth Governments reached an Agreement whereby the Commonwealth would collect on behalf of the state, all taxes and duties payable under the 'Land and Income Assessment Act' 1907, the 'Dividend Duties Act 1902,' and the 'Totalisator Duties Act' 1905. On the date this Agreement took effect (1 July 1921) all State Taxation Department Officers, including the Commissioner, were transferred to the Commonwealth Public Service. The Deputy Federal Commissioner of Taxation was given authority under the Agreement to act as the State Commissioner of Taxation. In June 1941 the Commonwealth assumed total control of income tax collection. Those branches of the Federal Taxation Department that dealt with land valuation and the collection of state taxes were transferred back to State jurisdiction in 1970 and integrated with the State Taxation Department.

See: 'Fourteenth Annual Report of the State Commissioner of Taxation' 1921/1922. Parliamentary Paper No. 22. 1922. 'Hansard' Volume 185 (1969-1970) Page 2783-4.