Market rent redetermination

Rents

Under the Crown Lands Management Act 2016 (CLM Act), holders of leases, licences and permits (tenures) to use Crown land are required to pay rent. The NSW Government applies consistent, fair, and transparent methods for the redetermination of rents based on the type and purpose of the tenure.

Rents are determined on the market value of the land including its zoning and use. Recreational areas are assessed at a lower rate than commercial areas.

Under the CLM Act, leases and licenses are subject to a market rent review every 3 to 5 years, depending on their tenure.

Rebates and concessions

Some tenure holders are eligible for rebates, waivers or concessions under the department’s financial concessions policy.

For example, eligible community groups pay only minimum statutory rent and eligible single interest sporting groups are entitled up to a 50% rent discount.

For registered clubs on Crown land, if they earn revenue under $500,000 they are entitled to a 50% rent rebate and if they earn between $500,000 and $1 million in revenue they are entitled to a 20% concession. See ‘rent rebate concessions’ table at bottom of page for more information.

Rebates or waivers are not continuous, and you must provide evidence of eligibility for assessment each time your rent is redetermined.

Rebates cannot reduce rent below the statutory minimum. More information on rebates and waivers can be found under Financial assistance.

The revenue from rent paid by tenure holders is used by Crown Lands to support and invest in local community spaces, protect environmental assets and build climate change resilience, in line with the Crown land 2031 State Strategic Plan (PDF, 3.7 MB).

The department can work with tenure holders to develop payment plans. Tenure holders who are experiencing financial stress may apply for financial hardship in the form of waivers, billing frequency changes, postponement or payments and instalment plans.

Market rent redeterminations

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

The purpose is to keep the rent paid in line with rental rates of the current market.

Revenue raised from reestablishing market rents will go directly towards initiatives Crown Lands is responsible for, such as fire trail upgrades ahead of the bushfire season, and addressing the backlog of contaminated land sites across the state.

To assess the rent of a lease or licence, the following principles are applied in accordance with Section 6.5 of the CLMA 2016 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 considered.
The time for which the determined rent will be payable.

If rent is reviewed and updated, a Rent Redetermination Notice is issued to inform a tenure holder of their rental changes.

This notice is not a request for payment; it is a notification of rent redetermination only.

Objecting to a market rent redetermination

Crown land tenure holders generally have the right to object to a redetermination of rent. The exception to this is:

Independent Pricing and Regulatory Tribunal (IPART) market rent reviews for domestic waterfront and telecommunication tower licences
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 property, or if the area, dimensions, or description of the tenure is incorrect.

If you believe you have sufficient grounds to lodge an objection, you can lodge an online objection at Objecting to a market rent redetermination.

You will be required to provide supporting evidence clearly demonstrating your grounds for objection.

If you require further information on lodging an objection, please phone 1300 886 235.

Once a determination is made by the Certified Practicing Valuer, the Objections Officer will issue a letter informing you of the outcome, generally within 60 business days of the date of the Letter of Acknowledgement of Objection.

Payment of rent is a condition of tenure. The tenure holder has an obligation to continue to pay rent, even if an objection is lodged.

Guidelines on objecting to a market rent redetermination are available in Guideline – Objection to market rent redetermination for Crown land tenures (PDF, 482 KB).

Please see the factsheet under 'Further information' for more information on market rent redeterminations.

How we can help

We understand the past few years may have been difficult for many of our customers and we are here to support you.

Should you have any questions in relation to the process, email [email protected] or phone 1300 886 235.

Visit Financial assistance for more information.

Table of Rebates

Category	Rebate	Eligibility criteria	Rebate period
Community groups & registered clubs
Community Volunteer Service Groups (Category 1)	Statutory Minimum Rent ($579)	Applicant must be an organisation or group whose primary purpose is to provide services or facilities which are of benefit to the welfare of the general community, is largely supported by volunteers, uses the holding primarily for the specified purpose, and: a) is a registered charity with Australian Charities and Not-for-profits Commission, or b) is incorporated under the Associations Incorporation Act 2009, or c) holds an authority under the Charitable Fundraising Act 1991	Rebates will apply until the next redetermination of rent. A new application must be lodged at redetermination.
Single Interest and Sporting Groups (Category 2)	50%	Applicant must be an organisation or group whose primary purpose is to provide services or facilities for their members or users (rather than for the general community) and uses the holding primarily for the benefit of the sporting or other single interest group and: a) a registered charity with Australian Charities and Not-for-profits Commission, or b) is incorporated under the Associations Incorporation Act 2009, or c) holds an authority under the Charitable Fundraising Act 1991
Registered Clubs (Category 3a)	50%	Applicants must be a registered club under the Registered Clubs Act 1976 and the higher of annual gaming revenue (ie from poker machines) or annual gross revenue (exclusive) is less than $0.5 million.
Registered Clubs (Category 3b)	20%	Applicants must be a registered club under the Registered Clubs Act 1976 and the higher of annual gaming revenue (ie from poker machines) or annual gross revenue (exclusive) is between $0.5 million and $1.0 million, inclusive.
Community groups	Statutory Minimum Rent ($579)	Account holder must be a special community interest group being run on a not-for-profit basis.