The Newman Government announced on 12 August 2013 that it is addressing Queensland’s security of land tenure for rural landowners. Many readers will be aware of the current problems with security of land tenure on rural leases and the certainty that a more secure process can provide for rural leaseholders.

As part of the State Government’s response to the Parliamentary Inquiry into the future and continued relevance of government land tenure across Queensland,the Government is proposing to introduce a rolling term lease under the Land Act 1994 to boost the security of tenure for rural lessees whilst maintaining compliance with the Native Title Act 1993. The rolling lease will streamline the lease renewal process for rural leasehold land by allowing term leases to be automatically renewed at expiry provided certain requirements have been met by a leaseholder.

The Government has stated that it intends to extend rural leases which expire on or before 31 December 2015 and where an application has already been made, for up to two years so that these renewals can be considered under the proposed amended legislation.

While much of the proposed amendments are still being developed by the Government, this announcement is indicative of a positive way forward towards a more secure renewal process for rural leaseholders.

The table below summarises the key issues with the current system of State land tenure on rural leases across Queensland and how the Newman Government proposes to address these issues.

Rural Lessees are currently faced with:

The State Government proposes to:

  •  uncertainty every time their lease is due for renewal

 

  •  inability to make long term investment decisions
  • lack of security of tenure which affects the confidence of investors and the leaseholder’s negotiating power with financiers
  •  introduce “rolling leases” which will:
  • allow rural producers to automatically renew their term leases at expiry provided a limited number of requirements have been satisfied;
  • provide rural lessees with 60-years of “rolling tenure”; and
  • streamline the lease renewal process
  •  identify clear pathways for rural lessees to upgrade from leasehold to freehold land

 

The Holding Redlich Agribusiness & Rural Industries team will monitor the Government’s proposed amendments and report on any developments as they arise.

If you require more information, have any queries or require any assistance with your land tenure enquiries, please contact:

Authors: Adele O’Driscoll

Contact

Brisbane
Ron Eames, Partner
T: +61 7 3135 0629
E: ron.eames@holdingredlich.com

Disclaimer

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accurate and timely information, we do not guarantee that the information in this publication is accurate at the date it is received or that it will continue to be accurate in the future. We
are not responsible for the information of any source to which a link is provided or reference is made and exclude all liability in connection with use of these sources.  

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