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Legislative Assembly for the ACT: 1999 Week 9 Hansard (2 September) . . Page.. 2910 ..


granted under section 161 or 17 1 A, then the first amount is any amount paid at the time the lease was granted, plus any amount that is to be paid under the lease. In all cases, the first amount does not include any amount that is attributed to lessee owned improvements.

index number is the All Groups Consumer Price Index (CPI), which is the weighted average of the eight capital cities as published by the Australian Statistician.

later index number is the last index number that was issued before the last amount is calculated.

earlier index number is last index number that was issued before the lease was granted under section 161 or 171A.

owed amount is any amount of the first amount value that has not been paid plus any unpaid amount for lessee owned improvements that were required to be purchased at the time of the grant of the further lease. For a long lease the amount is the amount to be paid as required in the lease. For a short lease the amount is any rent and additional rent payable under the lease.

2) There will be no appeal rights on the payment of the "discharge amount".

3) The term 'Full tenant rights lease' refers to leases where the Lessee owns all the improvements on the land, including the timber treatment. Timber treatment is the value of the timber clearance on the land and recognition of this value came about as the result of a case in the Supreme Court in the early seventies. Full tenant right lessees do not own the land under lease. The only difference between a full tenant right rural lease and any other rural lease in the Territory is the level of improvements owned by the lessee. Any payment required by a full tenant right lessee under the provisions of the 10 year covenant will relate to the difference in the land value at the commencement of the scheme (ie the "first amount" determined under 161 or 171A of the Land Act) and the market value of the land at the time of sale (ie the "last amount" as defined).

The pay out provisions of the policy requires the lessee to pay a premium that is based on the carrying capacity of the land rather than the market value. In the case of the 1956 leases, this is the land in its timbered state, which would reduce the carrying capacity and the cost of the pay out.

The Government has recognised the problems associated with running any agricultural enterprise and the result is the pay out being based on the carrying capacity of the land. Coupled with the 15% reduction for ACT factors, this equates to a lessee paying a concessional rate, but, if the lessee decides to sell, the property will be sold at full market value. It is only fair that any windfall derived from the sale of land (exclusive of improvements) is shared by the Territory.

4) No and it is not expected that any rural lease will lose productivity as a result of Land Management Agreements (LMAs).


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