Legislation creating a new system to set rents for Crown pastoral leases has passed its first reading in Parliament.
At present, such leases are determined on land value.
The proposed Crown Pastoral Land (Rent for Pastoral Leases) Amendment Bill abandons the land valuation concept and looks at the earning capacity of the property in a pastoral lease.
The legislation also sets up a dispute resolution system to replace the process of appeal to the Land Valuation Tribunal.
The bill passed its first reading by 76 votes to 39, with Labour and the Progressive Party leader Jim Anderton voting against.
It will now be considered by the Primary Production Select Committee, which will take public submissions.