Rents

Holders of leases, licences and permits to occupy Crown Land are required to pay rent. Both the Crown Lands Management Act 2016 and individual tenure agreements contain provisions for the periodic market redetermination of rent.

The NSW Government applies consistent, fair and transparent methods to the determination and redetermination of rents based on the type and purpose of the tenure.

The rent for tenures is determined by one of the following methods:

  • market rent reviews for most tenures
  • IPART market rent reviews for domestic waterfront and telecommunication tower tenures
  • Ministerial direction for enclosure permits
  • statutory formulae for Western Land leases.

Minimum rent and Consumer Price Index value

Date Minimum rent CPI value
25 July 2018 $493.00 114
24 April 2018 $491.00 113.6
31 January 2018 $490.00 113.3
27 April 2017 $481.00 111.3
27 January 2017 $479.00 110.9
27 October 2016 $477.00 110.4
27 July 2016 $472.00 109.3
27 April 2016 $470.00 108.7
27 January 2016 $471.00 108.9
28 October 2015 $469.00 108.6
22 July 2015 $468.00 108.3

Rebates

Rebates from market rent can be granted for tenure holders that meet defined eligibility criteria. This includes pensioners, charitable or non-profit community service, sporting or cultural organisations, however the rent will not fall below minimum charge.

If you are experiencing difficulty paying your account, contact us to discuss your circumstances as financial concessions may be available.

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 rental rates shown in the current market.

Rental redeterminations occur every three to five 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.

Further information on objecting to a market rent redetermination is available in the Market rent determination policy and guideline.

Contact us for more information or email rent.redeterminations@crownland.nsw.gov.au.