Pastoral Lease Rent Review
Pastoral rents in Western Australia are independently determined every five years by the Valuer-General with rents based on land values, the economic state of the pastoral industry and the rate of return.
Under Section 32 of the Valuation of Land Act 1978, pastoralists have the right to object if they consider their rent to be excessive.
As a result of pastoral objections received following the delivery of new rents on 1 July 2019, and in conjunction with the pastoral industry, the rate of return utilised in the calculation of the rents was reduced from 2.8% to 1.8%.
On the basis of this, the Valuer-General granted an extension for pastoralists to lodge an objection to their 1 July 2019 rent until 30 June 2021. This extension has now expired but if you require any further assistance with your 2019 pastoral objection you can contact Landgate customer service on (08) 9273 7373.
If you are looking to lodge an objection to your 1 July 2021 rent notice then please complete the objection form below.
For further information take a look at our Frequently Asked Questions below.
Frequently asked questions
Under the Land Administration Act 1997, the Valuer-General is responsible for undertaking a review of Western Australia’s pastoral lease rents every five years.
Annual pastoral lease rent is the amount of ground 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.
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 rate of return is then applied to the unimproved value to derive a rental value.
Being based on analysis of sales of pastoral leases in the marketplace, 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, houses 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, land system productivity, location, access, rainfall reliability.
The Valuer-General also consults with the Pastoral Lands Board in relation to the economic state of the pastoral industry.
There are 449 Pastoral Stations in Western Australia, which cover 86 million hectares and extend over 26 shires.
The most recent pastoral lease rent review occurred in 2019, with the determined values taking effect from 1 July 2019. At the time, the Minister of Lands determined that the rent increases were to be phased in over a three-year period, resulting in rent increases being capped at 20% in 2019-20 and 2020-21, with the balance to be applied in 2021-22.
Landgate received objections against the pastoral rents for 103 leases. These objections satisfied the requirements under the Valuation of Land Act 1978.
Factors considered as part of the pastoral objection process included sales analysis, station specifics, movement in Bond rates, Consumer Price Index and movements in returns of other property classes which decreased over the review period.
The rate of return has been reduced from 2.8% to 1.8% as part of the pastoral rent objection process.
As a result of the adjusted rate of return and the factors considered (mentioned above) in the objection process the expected average changes to rents for 2019 include:
- Kimberley: +104% (instead of 325% increase)
- Pilbara: +10% (instead of 91% increase)
- Gascoyne/Goldfields: -7% (instead of 58% increase)
- Southern Rangelands: -3% (instead of 8% increase)
The revised rate of return can only apply where an objection has been received and allowed. The rate of return will not apply if a station is on minimum rent.
The minimum rent for pastoral leases is $2,000 plus GST. The minimum rent isn’t covered in the LAA but is a market assessment determined by the Valuer-General.
For those pastoral leases on minimum rent the rate of return will not be applied.
All pastoral lease rents are effective from 1 July 2019.
Current objectors will be notified of the decision on their objection by 30 June 2021. This information will also be provided to the Department of Planning, Lands and Heritage who will issue updated rent assessments.
Pastoral lease rents form the basis for the unimproved value which are used in the calculation of local government rates and biosecurity levies payable by pastoralists.
The Valuer-General has extended the pastoral lease objection process until 30 June 2021, to allow for those who have not objected to do so.
A simplified objection form is available at landgate.wa.gov.au/pastoral-rent-objection.
The new rate of return will only be applied to those who have objected in accordance with the objection process.
The Valuer-General aims to send out letters advising of the decision for current objections by 30 June 2021.
Any further objections will be processed promptly, and decisions will be notified as soon as possible.
Landgate is working with the Department of Planning, Lands and Heritage (DPLH) to review the pastoral rent setting methodology as part of the Pastoral Lands Reform, to enable both local government and pastoralists to plan with more certainty. Further information on Pastoral Lands Reform can be found on DPLH’s website.
How can I get further information?
You can find further information on the pastoral lease rent review at Landgate’s website: landgate.wa.gov.au/pastoral-rent-objection or by calling our customer service centre at (08) 9273 7373 for assistance.
This page was last updated on: 01 Jul 2021