Minimum rent for leases, licences and permits to occupy state-owned land are set to reduce from $370 to $200 this year.

Member for Cook, Jason O'Brien MP said it has been a hot topic in our area.

“I have had many people in the Port Douglas and Mossman region come up and talk to me about this issue,” said Mr O’Brien. 

“These are tough times and that circumstances are different from when the regulation was reviewed two years ago.”

The change means that the rent for all 11,580 leases currently on the minimum rent will benefit from a reduction on their rental, with some 8,565 decreasing to the new minimum rent of $200 and with annual CPI increases.

Natural Resources Minister Stephen Robertson said the rent on the remaining 3,015 leases will now be in the range of $200 - $370 based on the land value of the lease.

"This strikes a reasonable balance between the cost to Government to administer these leases, and the benefit received by the lessee from the use of these lands," Mr Robertson said.

Mr Robertson added that as a result of significant increases in land values reflected in the statutory valuations issued in March this year, combined with the rent percentage increase, these industrial estates had experienced large increases to their rent.

"The government recognised the impact this would have on businesses and has decided to place a cap on increases in rentals for the 2010-11 period to no more than 50% above the previous year's rentals.

Any rents that have been paid would be refunded if eligible under these amendments.