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Does the Government profit from selling land repeatedly, when the land returns to the Government?



Land returns to the State at the end of a lease, as the State holds ultimate title to the land. It then becomes State land once again and is protected as part of the reserves.

When that happens, there is no “profit” or net increase in the reserves. This is because the value of the “reversionary interest” in land (i.e. the right to resume ownership of the land at the end of a lease) forms part of the reserves.

In other words, when land is sold, the financial proceeds that the State receives make up for the State's loss of use of the land for the lease period, and not for the State giving the land away forever.

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