Page 2921 - Week 09 - Thursday, 26 August 1993

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MINISTER FOR THE ENVIRONMENT, LAND AND PLANNING

LEGISLATIVE ASSEMBLY

QUESTION NO. 958

Rural Leases - Rent Reassessments

MR CORNWELL - asked the Minister for the Environment, Land and Planning - In relation to rent reassessments on rural leases -

(1) Is it a fact that the rent charged for a rural block is tied to the condition of improvements on that block.

(2) If the condition of those improvements is poor or no better than at the previous reassessment, is it usual that the rent increase will be minimal.

(3) If the lessee has improved the condition of the facilities on the block, is it usual that the rent increase will be significant.

(4) Is ownership of the improvements, ie by the lessee or by your department, taken into account when rent is reassessed.

(5) Is it a fact that a lessee frequently pays dearly in rent increase because he/she has gone to the trouble and personal expense of improving Government property.-

MR WOOD - the answer to the Members question is as follows -

(1) Land rent for a rural lease is determined on the lease purpose clause, the carrying capacity of

the land, whether improvements are Government

owned or lessee owned and the location of the land.

If the improvements are owned by the lessee then there is no rental component in the assessed or reappraised rent. If the improvements are owned by the Government, then a rental is charged for those improvements based on their condition.

(2) Where the market evidence at the time of reappraisal for Government owned improvements has generally been static since the previous reappraisal, then the component for those improvements remains unchanged.

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