[Cherie Muir]

Hi there
Council land not leased for value can be GOVT land.
The Manual speaks or peppercorn nominal rent of $1 or $2, and rules out heavily discounted rent and gives an example of 25% of market rent NOT being nominal rent.
We have nominal rent situations that are % based, e.g. rent is 10% of market value. Say, annual market rent for a property is $50k, the discounted rent payable is $5,000 p.a. This example is heavily heavily discounted (and less than 25% mentioned in the Manual) by not truly peppercorn.
Has anyone else faced scenarios like this? What choice did you make? Thanks
BTW, if my 10% example here was considered nominal I would end up with Pre-schools classified as GOVT.

[Andrew Butcher]

Hi Cherie

I believe the intent is to capture just the peppercorn rents of $1 or so. Reduced rents I would be classifying in accordance with the purposes of the lease.

Hope this is helpful.

Regards,
Andrew

[Cherie Muir]

Thanks Andrew

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