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:
- contact us to discuss your objection to the rent determination within 28 days of receiving the rent redetermination notice
- lodge an objection form including supporting documentation and evidence relating to any feature of the property or tenure agreement you believe has been overlooked in the market rental redetermination assessment
- the department will conduct a preliminary assessment and then forwarded to a valuer who determines if the objection is successful or unsuccessful (the valuer has 60 days to make the determination)
- you will receive a letter from the department advising you of the determination outcome
- if your objection is successful an amended rent redetermination notice will be issued.
Payment of rent is a condition of your tenure. The tenure holder has an obligation to continue to pay rent, even if an objection is lodged.
Contact us for more information or email email@example.com.