Security of tenure
All new and renewed leases are issued as ‘term’ leases for a set period of time. Since 1986, the maximum renewal term has been 30 years.
Under the Delbessie Agreement, longer terms can now be achieved in conjunction with managing land in good condition:
- 30-year lease—the standard lease term
- 40-year lease—where the land is assessed as being in good condition
- 50-year lease—where the land is assessed as in good condition, and the leaseholder has entered into an Indigenous access and use agreement and a conservation agreement or covenant, where the Minister for Natural Resources and Water (the Minister) considers these appropriate.
All leasehold land is subject to Commonwealth native title provisions, which may limit renewal for a term longer than an original lease grant without native title being resolved. However, leaseholders now have an opportunity to achieve longer leases through extension provisions in the Delbessie Agreement.
Renewing a lease
Renewing a term lease
The leaseholder of a term lease may apply for an offer of a new lease unless a condition of the lease or the Land Act 1994 prohibits its renewal.
A decision to renew a lease is based on considerations required by the Land Act 1994, including:
- determining that the most appropriate long-term land tenure is leasehold for the purpose of grazing, agriculture or pastoral industry
- the interest of the leaseholder
- whether the public interest could be adversely affected
- whether part of the lease should be set aside as State forest or for conservation purposes
- the extent to which the lease suffers from, or is at risk of, land degradation
- the leaseholder's performance in regard to compliance with the conditions of the lease
- whether part of the lease land is needed for a public purpose.
Under the Delbessie Agreement, where a new or renewed lease is offered for rural leasehold land for a term of 20 years or more, and where the area of land is 100ha or more, the lease will be subject to a condition that the leaseholder must enter into a land management agreement.
Renewing a term lease early
All rural leaseholders will be contacted by the department and invited to apply for renewal about two years out from the date of expiry of their lease. Leaseholders wanting to renew a lease earlier can only apply to do so:
- after 80 per cent of the current term has expired; or
- when in the Minister’s opinion, special circumstances exist.
Early renewal will forego the benefits of any remaining term on an existing lease.
It is expected that a lease renewal will take about one to two years to finalise.
All rural leases subject to the agreement will likely be renewed - if they comply with the statutory requirements. However, when an future conservation area (FCA) is declared over part or all of a lease, a subsequent lease application cannot be made, and that land will be transferred to the protected area estate.
Special circumstances for early renewal of a lease, see page 9 of the Delbessie Agreement (PDF, 471K)*
Extending a lease
An extension of up to 10 years, to a maximum of 40 years, is available where either the land is assessed in good condition, or the leaseholder returns it to good condition within 10 years of entering into a land management agreement.
An extension of up to a further 10 years, to a maximum term of 50 years, is also available where land is in good condition and the leaseholder has entered into an Indigenous access and use agreement and a conservation agreement or covenant, where the Minister considers these appropriate.
For example, a leaseholder granted a 30-year term lease can receive both lease extensions (to a maximum of a further 20 years) if all the extension requirements are met. Similarly, a leaseholder granted a 40-year term lease can receive one lease extension of up to a further 10 years if an Indigenous access and use agreement and a conservation agreement (if required) have been entered into.
Perpetual leases
As perpetual leases do not expire, their level of security approaches that of freehold land.
Under the Delbessie Agreement, perpetual leases will still be made available where it can be demonstrated that:
- native title has been resolved
- the land is resilient and in good condition, and requires minimal government oversight
- measures have been adopted to preserve all significant values and interests in perpetuity
- all public interest and planning requirements have been identified
- all other requirements under the Land Act 1994 have been met.
* Requires Acrobat Reader
Last updated: 20 May 2009