New South Wales Consolidated Acts

CROWN LANDS (CONTINUED TENURES) ACT 1989 - SECT 4C

4C Adjustment of annual rent in line with Consumer Price Index-rent subject to redetermination

(1) The annual rent of a lease (except a lease the rent of which is not subject to redetermination) or permissive occupancy at a due date that is the effective date of a redetermination of the rent of the lease or permissive occupancy, or that is the next due date after a mid-term redetermination of the rent of the lease or permissive occupancy, is:

(a) the rent as so redetermined, or

(b) if the minimum rent at that due date exceeds the rent as so redetermined, the minimum rent.

(2) The annual rent of a lease or permissive occupancy referred to in subsection (1) at any other due date is:

(a) the CPI adjusted rent at that due date, or

(b) if the minimum rent at that due date exceeds the CPI adjusted rent, the minimum rent.

Note: As at 1 July 2004, the minimum rent under Division 2A of Part 7 of the Principal Act is $350. That amount is subject to CPI adjustment under that Act and may also be increased by the regulations under that Act.
See also Part 4 of Schedule 8 to the Principal Act, which provides for the phasing-in of minimum rents from 1 July 2004 to 1 July 2006.

(3) The "CPI adjusted rent" is to be determined in accordance with the following formula:

"R" represents the CPI adjusted rent.
"A" represents the determined rent, being the annual rent as at the last due date before 1 July 2004, or as at the effective date of the last redetermination of rent to take effect on or before the due date, whichever is later.
"C" represents the Consumer Price Index number for the last quarter for which such a number was published before the due date for the rent.
"D" represents the Consumer Price Index number for the last quarter for which such a number was published before the last due date before 1 July 2004, or as at the effective date of the last redetermination of rent to take effect on or before the due date, whichever is later.

(4) Despite subsections (1) and (2), if a mid-term redetermination of rent is made, the rent as so redetermined may be charged, on a pro rata basis, in respect of the period commencing on the date the redetermination takes effect and ending on the next due date in respect of the rent, and the annual rent payable may be adjusted by the Minister as appropriate (even if the rent in respect of that period has already been paid in advance).

(5) The operation of this section in respect of the rent of a lease or permissive occupancy is not of itself a redetermination of the rent for the purposes of this Act. Accordingly, clause 11 of Schedule 5 does not apply.

(6) For avoidance of doubt, the rent of a lease is not to be regarded as being subject to redetermination merely because the holder of the lease has the option, under clause 10 of Schedule 5, of applying to the Minister for a redetermination of the rent. However, it does become subject to redetermination if such an application is made.

Note: See section 4F.

(7) In this section:
"mid-term redetermination" of rent is a redetermination of rent that takes effect on any date other than the due date for the rent.

Note: See sections 4E and 4F in relation to effective dates of redetermination of rent. Redeterminations of rent are made in respect of rent review dates, which coincide with due dates for the rent. However, if a redetermination of rent is made more than 6 months after a rent review date, it takes effect on the date it is made (not the rent review date or due date for the rent). This is a mid-term redetermination of rent.