Document ID: chunk:federal_register_of_legislation:F2022L00470:reg:33:p1
Version: federal_register_of_legislation:F2022L00470
Segment Type: reg
Provision Reference: reg 33 (pt 1/2)
Character Range: 45870–48361

33  Commonwealth to pay lessee for certain improvements

Commonwealth's liability to pay for improvements
 (1) This section applies if:
 (a) the term of a lease expires; and
 (b) there are improvements to which this Division applies on the land comprised in the lease at the time of expiry; and
 (c) there is no provision in the lease that precludes or limits the right of the lessee to payment in relation to the improvements; and
 (d) the lessee is not granted a further lease of the land, or is granted a lease of only part of the land.
 (2) The Commonwealth is liable to pay to the lessee:
 (a) if no further lease of the land is granted to the lessee—the market value of the improvements on the land; or
 (b) if a further lease of only part of the land is granted to the lessee—the market value of the improvements on the part of the land not included in the further lease.

Period within which lessee must be paid
 (3) An amount that the Commonwealth is liable to pay the lessee under subsection (2) must be paid within the following period:
 (a) if the Commonwealth does not propose to grant a further lease of the land to any person—within the period ending 3 months after the expiry of the lease;
 (b) if the Commonwealth leases any part of the land to another person within 6 months after the expiry of the lease—within the period ending 3 months after the grant of that lease;
 (c) in any other case—within the period ending 6 months after the expiry of the lease.

Deduction of leasing expenses from payment to lessee
 (4) This subsection applies if:
 (a) the Commonwealth is liable to pay to the lessee an amount under subsection (2); and
 (b) before the expiry of the lease (the original lease), the Minister offers the lessee a grant of a further lease of the land comprised in the lease, or of part of the land; and
 (c) the lessee does not take the further lease; and
 (d) the Commonwealth grants a lease of the land comprised in the lease, or part of the land, to another person; and
 (e) the original lease was not granted for diplomatic purposes.
 (5) If subsection (4) applies, the Minister must deduct from the amount payable to the lessee the amount of any expenditure reasonably incurred by the Commonwealth in relation to the grant of a lease of the land, or a part of the land, to another person.

Commonwealth to account for revenue received from improvements
 (6) The Commonwealth must pay to a lessee the amount set out in subsection (7) if:
 (a) the term of the