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Commercial lease value

For non-farming properties, the commercial lease value of an asset 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 AVO. 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.



An asset means any property, including property outside Australia.

The Australian Valuation Office is a business line within the Australian Taxation Office. It provides Commonwealth Government departments, including DVA, with property valuations for assets test assessment purposes. Some of the types of property commonly valued include:

  • real estate;
  • commercial leaseholds; and
  • taxi plates and licences.

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