For non-farming properties, the commercial lease value of an [glossary:asset:296] is the value that can reasonably be obtained by using the asset. Generally this is the asset's market rental value.

For farming properties, the commercial lease value is assessed by the [glossary:AVO:412]. Reassessment may be requested if the valuation does not sufficiently take into account any of the following:

  • inherent characteristics of the land, eg soil conditions, erosion, salinity, condition of fencing,
  • demand for the land,
  • general farm incomes,
  • legal impediments to commercial use, eg an existing lease,
  • expenses incurred if the farm is leased, eg rates, insurance, interest,
  • value of water licences (if relevant), or
  • value of tobacco quotas (if relevant).

Note: If the asset does not have commercial lease value then notional income for the asset cannot be assessed.