Queensland Consolidated Acts

PROPERTY LAW ACT 1974 - SECT 161

161 Rules for ascertaining amount of compensation

In ascertaining the amount of compensation payable to the tenant in respect of any improvements made by the tenant, the arbitrator shall be guided by the following rules—

(a) the amount to be awarded shall be such sum as fairly represents the value of the improvements to an incoming tenant;

(b) there shall not be taken into account as part of such improvements what is justly due to the inherent capabilities of the soil;

(c) there shall be taken into account by way of set off against such improvements—

(i) any benefit which the landlord has given or allowed to the tenant in consideration of the tenant making the improvements; and

(ii) any sum due to the landlord from the tenant for rent or otherwise; and

(iii) compensation to the landlord by way of damages for any waste, or for any breach of covenant, contract or agreement connected with the tenancy committed or permitted by the tenant, but the landlord shall not be entitled to have taken into account any waste or breach by the tenant in relation to a matter of husbandry or cultivation committed or permitted more than 2 years before the determination of the tenancy; and

(iv) any rates, taxes, or assessments due in respect of the holding to which the tenant is liable as between the tenant and the landlord.