35Determining market value of improvements

35 Determining market value of improvements

Meaning of assessment day and market value (1) The assessment day, in relation to determining the market value of improvements on land, is: (a) if the term of the lease has expired—the day the term expired; or (b) if the lease has been terminated or surrendered—the day the lease was terminated or surrendered. (2) The market value of improvements on land is the amount by which the improvements increase the value of the lease of the land, assuming that the lease, together with the improvements, were offered for sale on the open market on the day before the assessment day on the reasonable terms and conditions that a genuine seller might require. Process for determining market value of improvements (3) If the Commonwealth is required under this Division to pay a lessee the market value of improvements on land, the Minister must, as soon as reasonably practicable after the assessment day: (a) determine the market value of the improvements on the land as at the assessment day; and (b) give the lessee written notice of the determination. (4) In determining the market value of the improvements, the Minister must: (a) in the case of a lease that has expired—assume that a further lease of the land had been granted subject to the same provisions, and for the same term, as the lease the term of which has expired; and (b) in the case of a lease that was terminated or surrendered—assume that the lease had not been terminated or surrendered. (5) The Minister must give the lessee a copy of the Minister’s determination under subsection (3) within the period ending 20 business days after the day the determination is made.