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CROWN LANDS (CONTINUED TENURES) ACT 1989 - SCHEDULE 5

SCHEDULE 5 – Rent etc

(Parts 2-5 of Schedule 2)

1 Definitions

(1) In this Schedule:
"lease" means a perpetual lease, a term lease or a special lease.
(2) In this Schedule, a reference to the rent of a lease which is subject to periodic redetermination includes a reference to the rent of a lease which may be redetermined at any time.

2 Payment of rent etc

(1) The rent and any other money payable under the provisions of an Act repealed by the Principal Act or under the provisions of the Prickly-pear Act 1924 (including the provisions of that Act continued by, and repealed under, the Prickly Pear Act 1987 ) in respect of a lease are, subject to this Act and the Principal Act, payable under this Act as if those provisions were contained in this Act.
(2) Subject to this Act and the Principal Act, any amount shown as payable in the records of the Department in respect of a lease is, until the contrary is proved, payable in the manner and at the time indicated in those records.
(3) The rent of a lease is payable in advance.
(4) If the rent of a lease or any other money payable to the Crown in respect of a lease is payable half-yearly, the rent or other money is, as from a date fixed by the Minister, payable annually.
(5) If:
(a) money is payable to the Crown in respect of a lease by half-yearly or annual instalments, and
(b) the annual rate of interest payable on the money would, but for this subclause, be less than 8 per cent,
the annual rate of interest so payable is, from the commencement of this clause, increased to 8 per cent.
(6) If the interest rate in respect of money payable to the Crown is increased, the Minister may adjust the half-yearly or annual instalments so that the total amount owing is paid over the same or a longer period.
(7) If any money payable to the Crown in respect of a lease, without the interest added, is payable in equal annual instalments over a period, the Minister may vary the manner of payment so that the money, with the interest added, is payable in equal annual instalments over the same or a longer period.
(8) Despite the other provisions of this clause but without affecting any liability to make a payment due and unpaid before the commencement of this clause, any annual payment of 2.5 per cent of the value of timber treatment under the Crown Lands (West Bogan Settlers) Improvements Relief Act 1943 that but for this subclause would be payable after that commencement in respect of a perpetual lease is waived.

3 Supplementary provisions applicable to payment of rent etc on leases in special land districts

(1) This clause supplements clause 2 in relation to leases in special land districts.
(2) In clause 2 (1) the reference to the provisions of an Act repealed by the Principal Act includes a reference to section 18A of the Irrigation Act 1912 (repealed by the Miscellaneous Acts (Crown Lands) Amendment Act 1988 ).
(3) In clause 2 (2) the reference to the Department includes, in relation to a lease in a special land district, a reference to the Water Administration Ministerial Corporation, the Department of Water Resources and the State Bank.
(4) In clause 2 (5)-(7) a reference to the Crown includes, in relation to a lease in a special land district, a reference to:
(a) the Water Administration Ministerial Corporation and the Department of Water Resources, and
(b) the State Bank or, if another person or body is prescribed for the purposes of this paragraph, that other person or body.
(5) If:
(a) by virtue of clause 2 (1) a provision of an Act repealed by the Principal Act applies to a lease in a special land district,
(b) there is a reference to the State Bank in that provision, and
(c) a person or body other than the State Bank is prescribed for the purposes of this paragraph,
the reference to the State Bank shall be read as a reference to that other person or body.
(6) After the commencement of this clause the rent of a lease in a special land district is payable in advance on each 1 July.
(7) Payment of the rent for the first period in advance after the commencement of this clause shall be deferred (free of interest) but shall be payable on the granting of an application to purchase the land comprised in the lease.

4 Rent for certain leases

(1) If the annual rent of a lease:
(a) was less than $100 immediately before the commencement of this clause, and
(b) is not subject to periodic redetermination, the annual rent is increased to $100 with effect from the commencement of this clause.
(2) If the rent for a lease has been paid, or is payable, in advance in respect of a period of 12 months that expires during the year commencing at the commencement of this clause, subclause (1) does not operate to require the payment of any increase of rent in respect of that period of 12 months.

5 Adjustment of certain rents in line with Consumer Price Index

(1) If the rent of a lease is not subject to periodic redetermination, it may be adjusted as at each due date in accordance with the following formula:
graphic
"R" represents the adjusted rent,
"B" represents the rent base, being the annual rent as at the commencement of this clause or, if the rent was increased by clause 4, $100,
"C" represents the Consumer Price Index number for the last quarter for which such a number was published before the due date, and
"D" represents the Consumer Price Index number or the last quarter for which such a number was published before the commencement of this clause.
(2) This clause does not apply in respect of the rent of a lease if Part 1A applies in respect of the rent of the lease.
Note: From 1 July 2004, most rental adjustments are made under Part 1A, not the above provision. As at 1 July 2004, Part 1A does not apply in respect of certain leases of land situated in the Western Division. Accordingly, this clause continues to apply in respect of such leases. Note that the regulations may apply Part 1A in respect of such leases.

6 Redetermination of rent of certain leases

(1) This clause applies to:
(a) a lease described in paragraph (b), (d), (f), (g) or (o) of Part 2 of Schedule 1 or paragraph (a) or (b) of Part 3 of Schedule 1, the title to which commenced on or after 23 March 1964,
(b) a prickly-pear lease described in paragraph (h) of Part 2 of Schedule 1,
(c) a suburban holding (other than a suburban holding in respect of a block notified under section 124 of the Crown Lands Consolidation Act 1913 as made available for the erection of a dwelling) the title to which commenced on or after 23 March 1964, and
(d) a special lease in perpetuity applied for before 1 February 1984 or a special lease extended to a lease in perpetuity if the extension was applied for before 1 February 1984.
(2) The Minister shall redetermine the rent of a lease to which this clause applies at 5 yearly intervals commencing as provided by this clause.
(3) If the lease commenced not more than 5 years before the commencement of this clause, the intervals for redeterminations under subclause (2) commence from the date of commencement of the lease.
(4) If the lease was a term lease that was extended to a lease in perpetuity not more than 5 years before the commencement of this clause, the intervals for redeterminations under subclause (2) commence from the date of the extension.
(5) If the lease is not a lease to which subclause (3) or (4) applies, the intervals for redeterminations under subclause (2) are intervals of 5 years commencing:
(a) except as provided by paragraph (b)-5 years before the commencement of this clause, or
(b) if the rent was last redetermined not more than 5 years before the commencement of this clause-from the effective date of that last redetermination.
(6) A redetermination:
(a) may be made not more than 6 months before or after the end of the relevant interval and, if so made, takes effect from the end of the interval, or
(b) may be made more than 6 months after the end of the relevant interval and, if so made, takes effect from the date of the redetermination.
(7) For the purposes of subclause (5) (b), a redetermination of rent made by a local land board under clause 8 (2) (a) of Schedule 8 to the Crown Lands Act 1989 (savings, transitional and other provisions) has effect as if it had been made immediately before the commencement of this clause.
(8) This clause does not apply in respect of the redetermination of the rent of a lease if Part 1A applies in respect of the redetermination of the rent of the lease.

8 Redetermination of rent of certain special leases

(1) In this clause, a reference to a special lease is a reference to:
(a) a special lease granted for a term of years,
(b) a special lease in perpetuity applied for on or after 1 February 1984, or
(c) a special lease extended to a lease in perpetuity where the extension was applied for on or after 1 February 1984,
other than a special lease the rent of which may be redetermined at any time.
(2) Despite any condition of a special lease, the Minister shall redetermine the rent of the lease at the intervals fixed by this clause for the lease.
(3) If the conditions of a special lease provide for redetermination intervals of not more than 5 years, the intervals for redeterminations under subclause (2) are the intervals provided by the lease.
(4) If:
(a) a special lease commenced not more than 5 years before the commencement of this clause, and
(b) the conditions of the lease provide for redetermination intervals of more than 5 years,
the intervals for redeterminations under subclause (2) are intervals of 5 years commencing from the date of commencement of the lease.
(5) If:
(a) a special lease was a term lease which was extended to a lease in perpetuity not more than 5 years before the commencement of this clause, and
(b) the conditions of the lease provide for redetermination intervals of more than 5 years,
the intervals for redeterminations under subclause (2) are intervals of 5 years commencing from the date of the extension.
(6) If a special lease is not a lease to which subclause (3), (4) or (5) applies and the conditions of the lease provide for redetermination intervals of more than 5 years, the intervals for redeterminations under subclause (2) are intervals of 5 years commencing:
(a) except as provided by paragraph (b)-5 years before the commencement of this clause, or
(b) if the rent was last redetermined not more than 5 years before the commencement of this clause-from the effective date of that last redetermination.
(7) A redetermination:
(a) may be made not more than 6 months before or after the end of the relevant interval and if so made, takes effect from the end of the interval, or
(b) may be made more than 6 months after the end of the relevant interval and, if so made, takes effect from the date of the redetermination.
(8) For the purposes of subclause (6) (b), a redetermination of rent made by a local land board under clause 8 (2) (a) of Schedule 8 to the Crown Lands Act 1989 (savings, transitional and other provisions) has effect as if it had been made immediately before the commencement of this clause.
(9) A condition of a special lease providing that the Minister may at any time direct that the rent be reappraised by the local land board has no effect and, instead, the Minister may redetermine the rent at any time.
(10) This clause does not apply in respect of the redetermination of the rent of a lease if Part 1A applies in respect of the redetermination of the rent of the lease.

9 Redetermination of rent of certain special land district leases

(1) This clause applies to a lease in a special land district the rent of which, immediately before the commencement of this clause, was subject to periodic redetermination being:
(a) an irrigation farm lease of an area of 2 hectares or less,
(b) a non-irrigable lease comprising land not used for farming purposes, or
(c) a town land lease.
(2) This clause also applies to a non-irrigable lease in a special land district:
(a) the rent of which, immediately before the commencement of this clause, was not subject to periodic redetermination, and
(b) which comprises land that, under subclause (4), has been declared to be non-farming land.
(3) This clause also applies to a lease which is created in a special land district, by subdivision or otherwise, after the commencement of this clause and is:
(a) an irrigation farm lease of an area of 2 hectares or less,
(b) a non-irrigable lease comprising land that, under subsection (4), has been declared to be non-farming land, or
(c) a town land lease.
(4) If the Minister is of the opinion that land comprised in a non-irrigable lease is primarily suitable for residential, commercial, industrial or business purposes, the Minister may by notification in the Gazette declare the land to be non-farming land.
(5) Except as provided by subclause (7) or (7A), the Minister shall redetermine the rent of a lease to which this clause applies at 5 yearly intervals commencing:
(a) if the lease commenced not more than 5 years before the commencement of this clause-from the date of commencement of the lease, or
(b) in any other case:
(i) except as provided by subparagraph (ii)-5 years before the commencement of this clause, or
(ii) if the rent was last redetermined not more than 5 years before the commencement of this clause-from the effective date of that last redetermination.
(6) For the purposes of subclause (5) (b) (ii), a redetermination of rent made by a local land board under clause 8 (2) (a) of Schedule 8 to the Crown Lands Act 1989 (savings, transitional and other provisions) has effect as if it had been made immediately before the commencement of this clause.
(7) If:
(a) a lease to which this clause applies is a non-irrigable lease the rent of which was not subject to periodic redetermination before the commencement of this clause, and
(b) the land comprised in the lease has been declared to be non-farming land under subclause (4),
the Minister shall redetermine the rent of the lease as at the date of the declaration and after that at 5 yearly intervals.
(7A) If a lease to which this clause applies is an irrigation farm lease of an area of 2 hectares or less created by a subdivision, the Minister is to redetermine the rent of the lease as at the date of the approval of the subdivision and after that at 5-yearly intervals.
(8) A redetermination:
(a) may be made not more than 6 months before or after the end of the relevant interval and, if so made, takes effect from the end of the interval, or
(b) may be made more than 6 months after the end of the relevant interval and, if so made, takes effect from the date of the redetermination.
(9) This clause does not apply in respect of the redetermination of the rent of a lease if Part 1A applies in respect of the redetermination of the rent of the lease.

10 Applications for redetermination of rent of certain leases

(1) This clause applies to a lease the rent of which is not subject to periodic redetermination.
(2) The holder of a lease to which this clause applies may apply to the Minister for a redetermination of the rent of the lease.
(3) Any redetermination by the Minister takes effect from the first due date after the application.
(4) The rent of a lease which has been redetermined as a result of an application shall be further redetermined by the Minister at 5 yearly intervals commencing from the date when the first redetermination takes effect.
(5) A redetermination under subclause (4):
(a) may be made not more than 6 months before or after the end of the relevant interval and, if so made, takes effect from the end of the interval, or
(b) may be made more than 6 months after the end of the relevant interval and, if so made, takes effect from the date of the redetermination.
(6) Subclauses (3)-(5) do not apply in respect of the redetermination of the rent of a lease if Part 1A applies in respect of the redetermination of the rent of the lease.

11 Objections to, and appeals against, redeterminations

(1) The Minister shall give notice of a redetermination of the rent of a lease to the lessee and include in the notice a statement to the effect that the lessee may object to the redetermined rent.
(2) The Minister shall consider any objection lodged and by notice inform the objector:
(a) whether the redetermined rent is to stand or be varied, and
(b) that the objector, if dissatisfied with the Minister’s decision, may appeal as provided by subclause (3).
(3) An appeal against the Minister’s decision lies:
(a) to the local land board if the determined or redetermined annual rent does not exceed $10,000 or such greater amount as may be prescribed, or
(b) in any other case, to the Land and Environment Court.
(4) The local land board, or the Court, on hearing the appeal, may affirm the Minister’s redetermination or substitute its own.
(5) A redetermination of rent takes effect even if an objection or appeal is lodged.
(6) If:
(a) a redetermination is varied under subclause (2)-the varied redetermination has effect instead of the redetermination varied, or
(b) a redetermination is substituted under subclause (3)-the substituted redetermination has effect instead of that for which it is substituted.

12 Redetermination of rent-principles

(1) In redetermining the rent of a lease, the Minister, the local land board and the Land and Environment Court shall apply the following principles:
(a) the rent is to be the market rent for the land comprised in the lease having regard to any restrictions, conditions or terms to which it is subject, subject to subclause (3),
(b) any improvements on the land which were made by the holder, or are owned or in the course of being purchased from the Crown by the holder, shall be disregarded,
(c) regard may be had to any additional value which has accrued, or may reasonably be expected to accrue, to other land held by the holder by reason of holding the lease,
(d) regard may be had to the duration of the time for which the rent determined will be payable.
(1A) Despite subclause (1), if the Independent Pricing and Regulatory Tribunal makes a recommendation in relation to the rent of a lease (or any class of lease), the Minister may, in redetermining the rent of any lease that is the subject of the recommendation, apply the recommendation.
(1B) If the recommendation of the Independent Pricing and Regulatory Tribunal is applied by the Minister in redetermining the rent concerned, the local land board and the Land and Environment Court are, despite subclause (1), to apply the recommendation in determining any appeal against the Minister’s decision.
(3) Except as provided by clause 13, the rent of an irrigation farm lease, a non-irrigable lease or a town land lease, being a lease of land situated in the Western Division, which is subject to periodic redetermination shall be redetermined at 5 per cent of the market value of the land.
(4) For the purposes of subclause (3), the market value of the land is the market value as determined by the Minister, the local land board or the Land and Environment Court as at the date of the redetermination, exclusive of improvements which were made by the holder or are owned or being purchased from the Crown by the holder.
(5) If it appears to the Minister, the local land board or the Court that the value of the land has been reduced by any act, default or neglect of the holder, the value shall be determined as if the reduction in value had not taken place.
(6) Subject to Divisions 2A and 2B of Part 7 of the Principal Act, a redetermination of the rent of a lease in a special land district that is situated in the Western Division is subject to any reduction under the Irrigation Areas (Reduction of Rents) Act 1974 .
(7) The regulations may modify the application of this clause in respect of leases of land situated in the Western Division. In particular, the regulations may provide that subclause (3) or (6) do not apply in respect of such a lease.

13 Lower rate for certain redeterminations

(1) In this clause, a reference to a relevant lease is a reference to a lease in a special land district, being a lease of land situated in the Western Division, that:
(a) was granted under Part 6 of the Crown Lands Consolidation Act 1913 before 1 January 1933,
(b) was subsisting on 1 January 1948, and
(c) is not a lease excluded by subclause (2) or (3).
(2) A lease is not a relevant lease unless it is:
(a) an irrigation farm lease of an area not exceeding 2 hectares, or
(b) a non-irrigable lease or town land lease of land notified in the Gazette as available for disposal for the purpose of residence or described in the Gazette as suitable for residential purposes.
(3) A lease is not a relevant lease:
(a) if it was notified in the Gazette as available for disposal for the purpose of residence and was the subject of a consent under section 142D (10) of the Crown Lands Consolidation Act 1913 , permitting its use for another purpose, or
(b) if the annual rent for the lease had, before the commencement of this clause, been redetermined because land had been added to the lease.
(4) On the commencement of this clause, the rent of a relevant lease is the same as the rent payable immediately before that commencement (including any reduction made by section 20 of the Irrigation, Water and Rivers and Foreshores Improvement (Amendment) Act 1955 ).
(5) The annual rent shall, at the intervals provided by this Act, be redetermined at 3.875 per cent of the market value of the land determined in accordance with clause 12 (4).
(6) This section:
(a) has effect subject to Divisions 2A and 2B of Part 7 of the Principal Act, and
(b) ceases to have effect if, in the opinion of the Minister, the lease is being used mainly or substantially for business purposes.
(7) The Minister shall, if of the opinion referred to in subclause (6), redetermine the annual rent for the lease under clause 12 for the unexpired portion of the current rental period and, after that, at 5 yearly intervals.
(8) The regulations may modify the application of this clause in respect of leases of land situated in the Western Division. In particular, the regulations may provide that this clause does not apply in respect of such a lease.



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