Page 2924 - Week 09 - Thursday, 26 August 1993
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If improvements to the land have been carried out in accordance with any other legislation or condition of lease, and if such improvements meet the criteria for inclusion in the assessment of unimproved value, then any "added value" they provide must be considered. Improvements within this definition generally create "added value" to the unimproved value.
Valuations for land rent purposes specifically exclude the improvements to Government owned assets undertaken by lessees. Many lessees believe they are penalised by undertaking improvements. If the improvements are approved by the Government and clearly identified, lessees are not penalised in the valuation of land rent. However, I am aware that some improvements have been undertaken without prior approval and it is very difficult for valuers to determine the nature and state of the asset as if it were maintained by the Government.
In these latter circumstances, there may be some assets which are included in the valuation for rental purposes.
The Government has recently reviewed the rural lease policy in consultation with lessees and their representative groups. A new system for determining rent is being introduced. Rent will be calculated on a fixed percentage of the unimproved value of the land. That percentage will vary, depending on whether the assets on the land are owned by the lessee, the Government, or a combination of lessee and Government ownership.
There will be further discussions with rural lessees and the Australian Valuation Office on the determination of that percentage.
(2) A rural lease provides for lessees to maintain and repair and keep in repair the Government owned assets and allows for normal wear and tear. Should a lessee fail to adhere to this provision, and thereby breach the lease, the Government acts to warn the lessee. There is no penalty prescribed under the Land (Planning and Environment) Act 1991 and this is not an activity listed in Schedule 5 for which an Order could be issued.
Where my Department becomes aware that this provision is being breached, lessees are advised formally of their obligations and asked to undertake the repair work necessary.
Failing this, the Department may undertake the necessary repairs and recover those costs from the lessee.
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