When you are working out compensation, you need to apply a discount rate. This discount rate is either set out in the regulations or determined by the valuer. You can find more information about this in sections 374(1)(b) and 375.

The valuer determines the discount rate based on certain assumptions. These assumptions must be fair and reasonable, and not contradict any assumptions in the regulations. The valuer uses these assumptions to work out the discount rate if it is not already set out in the regulations.

You use the discount rate to calculate the compensation, making sure the assumptions are fair and reasonable. The regulations may already set out the discount rate or explain how to determine it. If not, the valuer decides the discount rate and the assumptions to use.