How are leasehold rents calculated over State land?
At present all State leases issued under the Land Act 1994 are subject to an annual rent, which is generally calculated by multiplying the most recent valuation for rental purposes by the prescribed percentage rate for the land use. The prescribed percentage rate differs depending on the category of lease. Some tenures, however, are only subject to a nominal (minimum) rent, while others are subject to a fixed rent for the term of the lease. Provisions exist to allow rents to be capped for certain categories and also for averaging of valuations for rental purposes. Recent amendments to State land rentals have been made subject to the Land Regulation 2009 and all enquiries regarding these changes and to State land rentals in general, should be made via DERM’s website or your nearest DERM business centre.
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