Leasing Indigenous land
- Types of leases
- Obtaining a lease
- Valuation of Aboriginal and Torres Strait Islander 99-year home ownership leases
- Frequently Asked Questions about Home Ownership
- Leasing Support Team
- Further Information
Long-term leasing arrangements are available under the Aboriginal Land Act 1991 and the Torres Strait Islander Land Act 1991 (the Acts).
A registered lease provides a lessee with: exclusive occupation of land; the long-term security required to obtain a loan; and opportunity to build a home, develop a business, or install and operate infrastructure. In return, a lease can provide a lessor (the trustee of the land) with a return for the use of their land. Leasing will also be of general benefit to Aboriginal and Torres Strait Islander communities through the diversification of land use and stimulation of activities to improve social and economic wellbeing.
Granting a lease means that a trustee agrees to allow exclusive use of a parcel of the land by another party for an agreed purpose, period of time, price/rent, and can be limited by other terms and conditions.
If a lease is not renewed it will expire at the end of its term and the land reverts back to the control of the trustee.
Leasing Indigenous land provides home ownership opportunities for people and facilitates land-based economic development and infrastructure provision without affecting the underlying tenure of the communal land.
Types of leases
The main types of leases under the Acts are:
- Private residential purposes leases — renewable leases of 99 years for private residential purposes (also referred to as home ownership leases);
- commercial purposes—encouraging economic development by enabling the renewal of leases and longer term leasing of up to 99 years. There are strict criteria that must be met before a proponent can obtain a commercial lease for greater than 30 years;
- public infrastructure and social housing purposes—allowing the State to hold long-term and renewable leases of up to 99 years for public infrastructure purposes or for purposes under the Housing Act 2003. The Australian Government and the local authority for the land can also be granted long-term leases to provide public infrastructure.
In some communities there may be leases (or lease applications) under the Aborigines and Torres Strait Islanders (Land Holding) Act 1985 (commonly referred to as the ‘Land Holding Act’ and ‘Katter leases’).
The Department of Environment and Resource Management is reviewing the Land Holding Act. Read more about the Land Holding Act.
Obtaining a lease
Leases are granted by the trustee of the land. For Aboriginal or Torres Strait Islander Deeds of Grant in Trust (DOGITs) the trustee will be the relevant Indigenous local council.
To obtain a lease a person (the lease applicant) must first lodge an application with the trustee.
To assist lease applicants and trustees to take advantage of, and implement these leasing arrangements the Department of Environment and Resource Management has prepared leasing manuals to guide parties through the leasing process.
The manuals include conditional agreements to a lease, lease terms documents and template letters for trustees. To apply for a lease, an Expression of Interest form must be completed.
To assist with the leasing process the Leasing Support Team in Cairns can assist or advise trustees and applicants.
Valuation of Aboriginal and Torres Strait Islander 99-year home ownership leases
The Acts provide that a purchaser of a home ownership lease must pay the trustee a purchase price for the lease over their land.
The purchase price must include, as a lump sum payment, an amount equal to the value of the lease land as decided by the trustee using at least one of the following:
- A valuation methodology decided by the chief executive [of the Department of Environment and Resource Management];
- The benchmark purchase price, as prescribed under a regulation.
Currently the purchase price is determined using a ‘nominal’ based valuation methodology. The nominal value is $4,000 for leases up to 2,000 m2 and that for each additional 100m2 the price would increase by $100. The nominal value is expected to be reviewed every three years and likely increase in line with the consumer price index. The Leasing Support Team in Cairns can provide assistance on the application of the land valuation methodology.
Frequently Asked Questions about Home Ownership
What is a 99-year home ownership lease?
Who owns the land when it is leased?
Who owns the house on leased land?
Who does the purchase price for a house and lease go to?
Will I have any ongoing costs?
Why would I want a home ownership lease?
Can I apply for a loan to buy or build a house?
If I am living in social housing, can I apply to buy the house?
Becoming a homeowner on Indigenous land.
How are 40-year social housing leases different to 99-year home ownership leases?
Where can I get further information and assistance?
What is a 99-year home ownership lease?
This type of lease provides home ownership—you own the house and are responsible for its maintenance and any council charges for services.
As these are residential leases, you may be able to obtain a loan to purchase the lease and any house on the land, or to build a new house on vacant land.
Who owns the land when it is leased?
A lease gives you (the leaseholder) exclusive use of the land. Exclusive use allows you to say who can come onto the land—meaning that the general community will not be able to enter or use your property without your permission.
The lease or your exclusive use of the land does not change the underlying ownership of the land, which remains in trust for the benefit of the community.
Who owns the house?
As the leaseholder, you own the house on your land.
What costs are involved?
The lease applicant will pay an upfront payment to the trustee to purchase the lease. The applicant will also pay a purchase price for any house on the leased land if they did not build it. Other costs might include:
- surveying— before an land can be leased it must be surveyed
- stamp duty—a charge imposed on the land dealing by the State government.
- rent – there is a $1 annual rent payable
Native title compensation costs may also apply. Where native title survives, an Indigenous land use agreement (ILUA) will likely be needed in order for the lease to be granted.
If there is no ILUA already covering your lease application, one will have to be agreed to with the traditional owners. The traditional owners may seek compensation as part of agreeing to the ILUA.
Your council or trustee should be able to advise you if there is already an ILUA in place, otherwise contact the Leasing Support Team in the Department of Environment and Resource Management on free call 1800 067 615.
Who does the purchase price for a house and lease go to?
The money you pay for the lease goes to the trustee and is used for the benefit of the community.
The money you pay for your house also goes to the trustee and is used for social housing purposes.
Other than stamp duty, no money goes to the State.
Will I have any ongoing costs?
There is an annual rental charge for the lease, which is no more then $1 per year.
Other ongoing costs for a home owner may include:
- loan repayments
- repairs and maintenance
- payment of council charges for services
- house and other forms of insurance
- electricity, gas and telephone.
As part of their lending packages, Indigenous Business Australia or the Torres Strait Regional Authority, can provide information about the ongoing costs involved with home ownership.
What land can I lease?
The trustee decides what land to make available for home ownership, but this is subject to local government planning approval.
If social housing is located on the land you are interested in leasing, the Department of Communities must decide if the house is still required for social housing. If it is required, then that house would not be available for home ownership.
Why would I want home ownership lease?
As a home owner you cannot be moved from your house and you are able to make your own decisions about the property, such as:
- making improvements (e.g. painting, or building a pergola)
- when to sell
- whether you will pass it onto your family.
Can I build my own house?
Yes, you can build your own house. If the land is vacant, you must build a house on the land within eight years of the lease being granted. Any house you build must meet the standards contained in the Building Act 1975.
Can I apply for a loan to buy or build a house?
Yes, Indigenous Business Australia and the Torres Strait Regional Authority provide home loans for eligible applicants to assist with buying, or building, a house in an Indigenous community.
If you obtain a loan through Indigenous Business Australia they may provide grants with their loan which can also be used to help cover some of these costs.
Additionally, you may also be eligible for the First Homeowner’s Grant as well.
The First Home Owners Grant can help to cover some of the costs associated with purchasing a house. To check whether you are eligible for the First Home Owners Grant contact the Queensland Office of State Revenue on 1300 300 734 or visit their website.
If I am living in social housing, can I apply to buy the house?
Yes, you can apply to the trustee to buy the house and the trustee will seek approval from the Department of Communities for the grant of the lease and sale of the house. If approval is granted, then you can purchase the house.
Becoming a homeowner on Indigenous land.
The Department of Communities (Housing and Homelessness Services) has developed a series of fact sheets for trustees and community members who wish to know more about becoming a homeowner on Indigenous land.
How are 40-year social housing leases different to 99-year home ownership leases?
The following table details the important differences between these two leases.
Aspects |
99-year home ownership lease |
40-year social housing lease |
What is the purpose of the lease? |
Private home ownership |
Social housing for the community |
Who issues the lease? |
Trustee |
Trustee |
Who holds the lease? |
You |
Queensland Government |
What is the term of the lease? |
99 years, which can be renewed |
40 years |
What is the price? |
A purchase price is charged for the lease and any house. |
Queensland Government pays a lease charge to the trustee and a service charge to the council. The tenant pays rent to the Queensland Government. |
Who pays? |
You (Stamp duty, a land valuation and service charges may also apply) |
Queensland Government |
Who pays for maintenance? |
You |
Queensland Government |
Native Title
Native title is the continuing connection of Aboriginal people and Torres Strait Islanders to their land and waters. The connection is maintained by exercising their native title rights and interests possessed under traditional laws and customs, which relate to this land and waters.
Native title must be addressed prior to every land and resource dealing, eg. the grant of a lease, the grant of a quarry permit, or the construction of a public work, in accordance with the Commonwealth Native Title Act 1993 which protects and recognises native title.
For more information, contact the Leasing Support Team.
Further information and assistance
The State can assist trustees and individuals with the home ownership process. Please contact the relevant area below for more information.
The Department of Environment and Resource Management has established a Leasing Support Team in Cairns. The role of the Leasing Support Team is to support the trustees of Indigenous land to process lease applications and if requested by the trustee, undertake many of the administrative tasks and requirements associated with leasing processes, in partnership with the trustee.
The team also provides information and training to trustees regarding their roles and responsibilities, and assists them to consider and decide lease applications.
Individuals wishing to find out more information should also contact the trustee of the land - for DOGIT land this will be the local council.
Leasing Support Team
Leasing Support Team
Department of Environment and Resource Management
Free call 1800 067 615.
Further Information
Home ownership
The Department of Communities is the contact for further information about social housing, including purchasing social housing for home ownership purposes.
Home Ownership Contact Office
Department of Communities
Phone: (07) 3225 1234
Department of Communities website
Finance
Indigenous Business Australia
Free call: 1800 107 107
Web: www.iba.gov.au/home-ownership
Torres Strait Regional Authority
Free call: 1800 079 093
Web: www.tsra.gov.au/
Fact sheets
fact sheet: L185—Leasing Indigenous land for private residential purposes (PDF, 69K)*
* Requires Adobe Reader
Last updated 2 December 2011