Western leaseholders get a cash-for-freehold Crown Land deal

Western Division leaseholders will be able to apply to convert their leases to freehold, following changes to the Crown Land Management Act 2016.

Perpetual Western Division leases cover 42 per cent of NSW – about 32 million hectares – and are the responsibility of the Department of Industry, via tenures granted under Crown Land law. 

This includes the sprawling 1.5 million-hectare Western Division TSR network stretching west from Walgett to Nyngan and Balranald.

A report released in November last year showed 73 per cent of farmers and leaseholders believed Western Division TSRs should be revoked if they hadn’t been used for droving in a long time.

Minister for Lands and Forestry Paul Toole said eligible leaseholders could apply to the Department of Industry – Lands and Water to purchase their leases, bringing legislation for the Western Division in line with other parts of NSW.

“The option to purchase a lease is entirely voluntary,” Mr Toole said.

TSRs in the state’s eastern and central areas are managed by LLS and are not included in this plan. 

President of the Finch Action Group, Denise O’Brien, runs the 8500ha cattle and cropping property, “Neirbo Plains”, near Lightning Ridge, with husband Gerard, and plans to convert their property to freehold.

The action group represents about 100 graziers and farmers, many of whom were operating multiple leases.

She said the group was formed in the 1990s to represent the Western Division on the issue of native title.

A 1998-99 meeting with John Howard, facilitated by NSW Farmers, resulted in a High Court case (Wilson vs Anderson) in 2002 in which the court ruled western lands leases did confer exclusive possession and were as good as freehold. This was the first hurdle.

A change to freehold will mean they no longer have to renew their farming licenses. The conversion comes at a cost of 3pc of unimproved capital value and Mrs O’Brien said it could be paid in a lump sum, or over 20 years, as well as other costs such as stamp duty.

“We are very excited with the outcome and feel it is a positive step forward for the Western Division,” she said.

“(It) gives institutions, which will only invest in freehold land, freedom to purchase in the Western Division.”

A spokesperson for Mr Toole said only current registered title holders could apply, and funds would be distributed back to consolidated revenue.

For leaseholders who do not want to convert to freehold, current leasehold arrangements would continue.

All applications would need to meet certain eligibility criteria, including land capability, and land needed for public purposes may not be eligible. This could include land on which TSRs were still in use.

Information regarding the changes will be published on the Crown Lands website on Monday, March 19, when the provisions take effect.