New Diversification Lease for Pastoralists
April 19, 2023
Author name
Proposed Amendments to the Land Administration Act 1997
On 18 November 2021 the Minister for Lands, Tony Buti, announced that the Land Administration Act 1997
(WA) would be amended in 2022 to introduce a new, more flexible form of land tenure for unallocated Crown land and pastoral land known as a ‘diversification lease’.
Currently, the Land Administration Act
only permits pastoral and unallocated Crown land to be used for grazing livestock. Pastoral leases in WA are granted for a period of 50 years with an option to renew, which most pastoralists exercise at the end of the lease period. The proposed ‘diversification lease’ will allow pastoralists to extend their pastoral lease for a further 50 years and use their land for other than pastoral purposes including horticulture and renewable projects such as wind farms and carbon sequestration projects.
The Minister has said that this new ‘diversification lease’ will also open up large areas of land for conservation organisations to preserve or rehabilitate biodivsity or for Native Title holders to undertake economic development activities such as cultural tourism.
Diversification Leases
The diversification lease that has been proposed will not extinguish native title rights and interests where there is native title, nor will it prevent mining and exploration activities from occurring. However, the Minister has indicated that all diversification leases will require the establishment of an Indigenous land Use Agreement with native title holders in the area.
The Northern Territory has been granting diversification leases to pastoralists through the Northern Territory Pastoral Land Act 1992
and the Crown Lands Act 1992
for several years and many pastoralists in the Territory have been able to leverage opportunities in the renewable energy sector and diversify their operational activities.
The Minister believes that the proposed amendments will:
- Offer greater certainty of tenure for pastoralists;
- Provide new large-scale carbon farming opportunities on Crown and pastoral lands;
- Remove red tape to aid in the fight against climate change;
- Facilitate important renewable energy projects in regional WA;
- Unlock economic opportunities for Native Title holders; and
- Be another step closer in WA’s transition to net zero emissions by 2050.
Some farmers and pastoralists have raised concerns about the practicality of the diversification lease and whether the proposed amendments will make much difference to the average pastoralist. Most renewable energy projects are very costly and require investment from external sources in order to be established. Diversification leases may only be a viable option for pastoralists with other interests, whom can gain large investments. However, a diversification lease may be an avenue for pastoralists to establish carbon projects and participate in the Commonwealth’s ERF scheme.
The amendments are still being drafted so the details of the diversification lease will not be known until a Bill is introduced into parliament, scheduled for early 2022.
Until then if you would like further information in relation to how the above matters may affect your business, please contact us on (08) 9321 5451 or by email at office@bailiwicklegal.com.au.
By Matilda Lloyd (Paralegal)
For further information about our legal services, please visit our website: https://www.bailiwicklegal.com.au/
The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.
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