Valuer-General allows 103 objections lodged for 2019 pastoral lease rents
- 103 objections allowed for pastoral lease rents
- Rate of return adjusted from 2.8% to 1.8%
- Additional economic indicators considered following feedback
The Valuer-General (VG), has allowed 103 objections as part of the 2019 pastoral lease rent process.
Pastoral rents in Western Australia are independently determined every five years by the VG 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.
Following consultation with objectors and the pastoral industry 103 objections will have an adjusted rate of return from 2.8% to 1.8% applied.
Factors considered as part of the 2019 objection process included sales analysis, movement in Bond rates, Consumer Price Index and movements in returns of other property classes which decreased over the review period.
As a result of the adjusted rate of return 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)
Landgate is working with the Department of Planning, Lands and Heritage 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.
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 objection process has been extended until 30 June 2021 to allow for those who have not objected to do so.
For further information, including Frequently Asked Questions and to obtain an objection form, pastoralists can visit the Pastoral Rent Review page on the Landgate website.
Comments attributed to the Valuer-General:
“The valuation of land for rating, taxing and other purposes is an important role that I, as Valuer-General at Landgate, have been entrusted to deliver on behalf of the State.
“It is my responsibility to ensure that this statutory obligation is fulfilled, and that a fair and equitable process is undertaken when objections are lodged.
“Following consultation with objectors and industry I have determined to allow 103 objections as part of the 2019 pastoral lease rent objection process which includes a reduction in the rate of return from 2.8% to 1.8%.
“I am committed to working closely with the Department of Planning, Lands and Heritage to improve the pastoral rent methodology as part of the Pastoral Lands Reform to determine a better way of calculating pastoral lease rents so that it is less volatile and provides confidence and greater certainty to both pastoralists and rating authorities”.