Pastoral Lease Rent Review

Western Australia’s pastoral lease rents are reviewed every five years by the Valuer General, in consultation with the Pastoral Lands Board (PLB) and in accordance with the Land Administration Act 1997 (LAA).

It has been five years since the last review. The Valuer General is now determining new pastoral rents, which will be effective from 1 July 2019.

Frequently asked questions

What is annual pastoral lease rent?

Annual pastoral lease rent is the amount of rent that land in good condition might reasonably be expected to realise when managed as a long-term pastoral lease, plus any rents in relation to diversification permits.

How is pastoral lease rent determined?

The Valuer General determines rents based on accepted valuation practice. This is achieved by analysing sales of pastoral leases and deducting the value of any improvements to determine the unimproved land value. A capitalisation rate is then applied to the unimproved value to derive a rental value.

Being based on analysis of sales of pastoral leases in the market place, the assessments reflect the impact of any drought, industry economics and other factors that were considered by the parties to the sale transaction.

Only pastoral lease sales that are considered to represent “fair market” transactions are used in determining what is termed ‘market unimproved value’. These sales are analysed by distributing the sale price between livestock, plant and equipment, house and buildings, waters, fencing, any other improvements and the unimproved land value. This unimproved value evidence provides the basis for determining a separate unimproved value for each lease. The final market unimproved value considers a number of factors relevant to the pastoral enterprise such as potential carrying capacity (PCC), land system productivity, location, access, rainfall reliability, water supply, size, and environmental issues.

The Valuer General also consults with the Pastoral Lands Board in relation to the economic state of the pastoral industry

When will the new rent rates come into effect?

Pastoral lessees will receive their lease rent invoice in early July from the Department of Planning, Lands and Heritage. Payment will be due by 1 September 2019.

Rent review and objection

Under the LAA and VLA, any person liable to pay a pastoral rent has the right to:

1. Object to the related assessed values

2. If dissatisfied with the outcome of an objection, seek a review by the State Administrative Tribunal

If you are a lessee and have a concern about your rent or valuation please schedule a meeting with one of our specialist valuers. Staff qualified and experienced in the valuation of pastoral leases will be available to discuss how the rent for your leases(s) was determined.

Schedule A Meeting

Objections

If you query is still not resolved, after discussing it with a specialist valuer, you (or your agent) may lodge a formal objection.

Formal objections must be lodged within 60 days from the issue of a rent notice. While the Valuer General may accept objections outside this period, it is more likely the matter will then be treated as an informal query without a right of review.

The Valuer General may grant an extension of time in which to lodge a valid objection, however the onus is on the objecting party to establish reasonable cause for such an extension to be granted.

Objections must be made in writing to the Valuer General and include sufficient information to identify the property. For the objection to be valid, this must include:

  • The name of the station and pastoral lease number(s) or Crown Land title details
  • The Department of Planning, Lands and Heritage invoice number on the rent notice
  • Confirmation that the objection relates to the pastoral lease rent determination
  • Detailed reasons and evidence in support of the grounds for objection
  • Details of the objector’s name, postal address and telephone number

Once an objection is received and accepted, the Valuer General may seek to arrange an inspection of the property. A response, including the decision to allow or disallow the objection, will be provided in writing.

Download an Objection Form.

Seek a review

If you lodge an objection and are dissatisfied with the Valuer General’s decision, you may have the decision reviewed by the State Administrative Tribunal (SAT). A request to have the decision referred to the SAT must be served on the Valuer General within 60 days of the service of the Valuer General’s decision on the objection, or such further period as the Valuer General may allow.

What support is available to pastoralists?

For further information please refer to the Department of Planning, Lands and Heritage website.

This page was last updated on: 16 Jul 2019