Leases and licences

A wide range of organisations and individuals use Crown reserves. We refer to any group or individual – apart from the Crown land manager – who organises activities on Crown land as a user.

Common examples of users include sporting clubs, service organisations, small business, schools, the local council (except where the council is the Crown land manager), and individuals. From one-off activities such as a hall hire for a birthday party through to a 10-year lease on a racecourse, there is a range of different types of tenure (licences or leases) for which Crown land managers are responsible under the Crown Land Management Act 2016 (CLM Act).

In situations where you – the Crown land manager – are not organising or carrying out an activity, you should not take responsibility for the risks involved. Instead, you should enter into an agreement that passes the responsibilities to the user. Granting a tenure to third parties sets out the rights and responsibilities of both the Crown land manager and the tenure holder (the organisation or individual who holds a licence or lease).

Income generated through tenure is a primary form of funding for a Crown land manager. The income can cover running costs and be invested in long-term improvements of the Crown land.

When you grant tenure over Crown land, you should follow these principles:

1. You should ensure the tenure purpose/s is consistent with the purpose/s for which the Crown land is reserved or dedicated (or is ancillary or incidental).
2. You cannot grant certain tenures over the Crown land if they are prohibited under the Native Title Act 1993. Native title legislation always overrides the CLM Act.
3. You should grant tenures to suitable holders in the best interest of managing the Crown land, in keeping with the objects and principles of the CLM Act.
4. You should seek market rent for tenure. You may grant a rebate, or waiver, where suitable, though the final rent should not be less than the statutory minimum rent. The statutory minimum rent value (for a 12-month period) is available at Application fees and rents. The final rent amount is to be the best return possible for the Crown land manager to invest in maintaining and improving the Crown reserve over the long term.
5. You should ensure the process to select a suitable holder is open, transparent and accountable so that dealings promote fairness and competition.
6. You must follow the requirements of the Community Engagement Strategy before issuing tenure for a term longer than 12 months.

The requirements for entering into tenure vary depending on the type of Crown land manager (council or non-council) and category (1 or 2).

Category 1 Crown land managers can issue leases and licences for a period up to 10 years (including any option to renew) without the minister’s consent. However, under the Community Engagement Strategy, you must inform the minister of leases with terms of up to 10 years. You must also inform the minister of licences for terms longer than 12 months and up to 10 years. You need the minister’s consent for longer-term leases and licences.

Category 2 Crown land managers can issue short-term licences of up to 12 months without the minister’s consent. You need the minister’s consent for leases, and for licences with terms longer than 12 months.

We encourage non-council Crown land managers to contact the Department early when you are considering granting a lease or licence (excluding short-term licences). Contact us to confirm, at a minimum:

• the appropriateness of the proposed tenure with the reserved or dedicated Crown land purpose
• Community Engagement Strategy requirements
• market rent, and any appropriate rebates or waivers for non-commercial tenure holder
• if you need approval under the Environmental Planning and Assessment Act 1979 or any other legislation
• native title rights and Aboriginal land claims.

Local councils are appointed to manage Crown reserves under the public land provisions of the Local Government Act 1993, including the granting of leases and licences.

Interim arrangements under clause 70 of the Crown Land Management Regulation 2018 allow local councils to grant certain leases and licences on Crown land until either a plan of management under the Local Government Act 1993 is adopted or the Crown land is classified as operational land with the minister’s consent.

For more information on transitional provisions, visit Council Crown Land Manager.

*Consent is not needed. However, you must inform the minister if the term is more than 12 months.