New Diversification Lease for Pastoralists
January 5, 2026
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.
Bailiwick Legal Advises on Landmark Acquisition of Rawlinna Station by Consolidated Pastoral Company
Bailiwick Legal is proud to have acted for Consolidated Pastoral Company (CPC) in its successful acquisition of Rawlinna Station , Australia’s largest sheep station, located on the remote Nullarbor Plain in Western Australia. Spanning over 1 million hectares and running approximately 30,000 sheep , Rawlinna is an iconic pastoral asset with a rich legacy, having been held by the MacLachlan family’s Jumbuck Pastoral Company since its establishment in 1962. The sale marks the first change of ownership in over six decades and was finalised following formal approval from the Western Australian Government for the transfer of the pastoral leases. This transaction involved navigating: The transfer of three separate pastoral leases Coordination across multiple vendor entities Consideration of livestock and operating assets Fulfilment of regulatory and compliance requirements, including WA lease approval processes Bailiwick Legal is a boutique agricultural and regional law firm , proudly based in Perth and Bridgetown, Western Australia. Our role in this acquisition demonstrates that deep sector knowledge, local insight, and personalised legal support are crucial for agribusiness clients managing complex, high-value transactions. Our team, led by our regionally-based solicitor, Matilda Lloyd, provided end-to-end legal and strategic support, including: Due diligence on land tenure and operating assets Contract negotiation and preparation Advice on regulatory approvals and compliance Strategic coordination with CPC’s internal and external stakeholders to ensure a smooth and timely settlement We are honoured to have supported CPC in this milestone acquisition and look forward to watching Rawlinna’s next chapter unfolds. At Bailiwick Legal, we believe that regional expertise, deep industry knowledge, and relationship-based service remain essential to agribusiness success, no matter the scale. Congratulations to all parties involved, including the MacLachlan family, whose stewardship of Rawlinna leaves a lasting legacy in Australian agriculture. – The Bailiwick Legal Team Working alongside agribusinesses to grow, transition, and thrive . For assistance with all of your agribusiness needs, contact Bailiwick Legal on 08 9321 5451 or email office@bailiwicklegal.com.au By Matilda Lloyd (Associate) 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.
Our June 2024 newsletter is now available. Have a read to find out what we have been up to in the first half of the year!
The International Sustainability and Carbon Certification (ISCC) System has come to the attention of many Western Australian farmers recently, as the scheme has changed one of its policies regarding aerial spraying. What is the ISCC? The ISCC is one of the world’s largest voluntary sustainability certification schemes enabling participants to demonstrate they are producing materials in a sustainable way that meets or exceeds community expectations. In Australia it is widely used in the canola industry, enabling Australian canola growers to access the European biofuel market. CBH Marketing and Trading holds certification for the ISCC EU and ISCC PLUS programs, that cover canola, barley, oats, wheat and lupin, allowing WA growers to participate in both programs. Participating in the ISCC program can result in a premium on grain, however participants are subject to more stringent measures to satisfy sustainability accreditation requirements. Recent decision on aerial spraying ISCC Principle 2.6.2 prevents aerial spraying from taking place within 500 metres of a body of water. CBH has successfully lobbied for an exemption to this Principle, for farm dams and salt lakes of low ecological value. As part of its lobbying, CBH provided expert reports to the ISCC on the hydrology and ecology of WA farm systems. For farmers who are signed up to the ISCC program, this removes an obstacle during the season for weed management. The Principle does still require a 500 metre buffer for other bodies of water, including freshwater lakes, rivers, ponds or creeks. However, for those who farm yabbies and marron, this change may not be welcome. Marron and yabby farmers have noticed impacts on their populations where aerial spraying has taken place close to their properties, and aerial spraying can unintentionally damage natural vegetation, including young and old growth trees. For growers, it’s always prudent to follow best practice guidelines for aerial spraying to avoid spray drift – including monitoring weather conditions and the effect of water added to the chemical. For some farmers, this decision may prompt an examination of whether signing up to the ISCC program might be best for their business. In this circumstance, it is important to weigh up the potential benefits of the program compared to the sustainability accreditation requirements. For others, this decision is a timely reminder to stay up to date with best practice guidelines when it comes to spraying, particularly during the seeding season. For assistance with all of your agribusiness needs, contact Bailiwick Legal on 08 9321 5451 or email office@bailiwicklegal.com.au By Ciara Nalty (Solicitor) 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.
