Purchase price is generally to be market value or land value
9 Purchase price is generally to be market value or land value
The purchase price for land to which a successful purchase application relates is to be one of the following—
the market value of the land determined by the Minister as at the date of the application,
if the Minister elects—the latest land value of the land determined in accordance with the Valuation of Land Act 1916 as at the date of the application.
The Minister may make an election under subclause (1) (b) by a written notice given to the applicant.
Any improvements on the land that were made by the lessee, or are owned or in the course of being purchased from the Crown by the lessee, must be disregarded in determining a purchase price based on the market value of the land.
Note.
Section 6A of the Valuation of Land Act 1916 already provides that land value determined under that Act is not to take into account improvements made by the owner (which includes a lessee because the lessee holds an interest in the land).
If it appears to the Minister that the purchase value of the land has been reduced by any act, default or neglect of the holder, the Minister must determine the purchase price as if the reduction in value had not taken place.
This Act’s bill:Explanatory memorandumSecond reading speech
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