Rent redeterminations for continued irrigation leases
17 Rent redeterminations for continued irrigation leases
The Secretary may, by notice given to the holder of a continued irrigation lease, redetermine the rent for the lease. The Secretary may do so at any time (whether during or after the expiry of the initial period).
A notice for the redetermination of rent for a continued irrigation lease made during the initial period must provide that the redetermination takes effect only when the initial period ends.
If rent is not redetermined during the initial period, the Secretary must redetermine it as soon as reasonably practicable after the initial period ends.
Where there is a rent redetermination under this clause (the initial rent redetermination) for a continued irrigation lease that does not provide for rent redeterminations, the rent for the lease is to be varied for inflation on the date of each anniversary of the initial rent redetermination (the CPI adjustment date) in accordance with the following formula—
where—
R is the rent adjusted for inflation.
C is the rent payable immediately before the CPI adjustment date.
P2 is the Consumer Price Index number for the last quarter for which a number was published before the CPI adjustment date.
P1 is the Consumer Price Index number for the last quarter for which a number was published before the initial rent redetermination or last CPI adjustment date (as the case requires).
Any redetermination of rent under this clause must be in accordance with Part 6 of this Act. For this purpose, that Part applies as if the continued irrigation lease made no provision for how rent is to be redetermined.
Note.
Division 6.3 of this Act will require the rent to be redetermined by reference to the market rent for the land.
This clause applies despite any other provision of this Schedule or the terms and conditions of the continued irrigation lease.
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