Market rent redetermination

Market rent redeterminations

A rent redetermination refers to a change in rental after an assessment of the market rental value of Crown land.

Market rental reviews are a standard condition in leasing agreements. Their purpose is to keep the rent paid in line with current market rental rates.

Rental redeterminations occur every 3 to 5 years and both the individual tenure agreements and the Crown Land Management Act 2016 contain provisions for the periodic market rent redetermination.

To determine the rent of a lease or licence the following principles are applied by a certified practicing valuer:

Rent will be the market rent for the land taking into consideration any restrictions, conditions or terms to which it is subject.
Improvements on the land which were made by the holder, or are owned or in the course of being purchased by the holder will not be considered.
Any additional value which, because of the lease or licence, has accrued or is expected to accrue, to other land held by the holder will be taken into account.
The period of time for which the determined rent will be payable.

If rent is reviewed and updated, a redetermination notice is issued to inform a holder of their rental changes. This notice is not a request for payment as it is a notification of rent redetermination only.

Objecting to a market rent redetermination

Crown land lease, licence or permit holders generally have the right to object to a redetermination of rent. The exception to this is:

IPART market rent reviews for domestic waterfront and telecommunication tower tenures
ministerial direction for enclosure permits
rents that are below or at the statutory minimum rent

To object to a redetermination, the holder must have evidence that the redetermined rent is more than the market rental value of the Crown-owned property.

The objections process:

You can lodge an objection form if you have grounds to object to the market rent redetermination. You must supply supporting documentation as evidence that the market rent assessment is incorrect.
The department will conduct a preliminary assessment and then forward to a valuer who determines if the objection is successful or unsuccessful.
You will receive a letter from the department advising you of the outcome (generally within 60 days of the department receiving the objection).
If your objection is successful, an amended Notice of Redetermination of rent will be issued.
Payment of rent is a condition of your lease, licence or permit. As the lease, licence or permit holder you have an obligation to continue to pay rent, even if an objective is lodged.

Lodge an objection

Further information

Related Information