About Township Leasing

Township Leasing Model

A Township Lease is an innovative form of land tenure that allows Traditional Owners to maximise the economic potential of their land without compromising the land’s ownership, which remains Aboriginal owned. A Township Lease is long term and is a voluntary agreement. Traditional Owners advise the Executive Director on land management and development matters through the Consultative Forum, which is central to the Township Lease.

Township Leasing Choices

Township Leasing is a voluntary agreement between Traditional Owners and the Australian Government. A Township Lease does not change the ownership of the land - it always has and always will remain Aboriginal Land.

4 June 2025

Township Leases held by a Community Entity

There are some differences between the two. Here is a summary of how they are similar and how they are different.

15 August 2025

Other Leasing on Aboriginal Land

11 June 2025

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So what is a township lease and what does it mean for me and my community?
1976 – a landmark decision for Aboriginal people in the Northern Territory. For the first time through law government recognised Aboriginal people as the Traditional Owners of their custodial lands across the Northern Territory.
Despite this, Aboriginal communities have often lacked infrastructure, economic opportunities and commercial development. In 2006, to help fix this, the Land Rights Act was amended to allow for township leasing.
So let's look at what township leasing means. Township leasing is a voluntary agreement between Traditional Owners and the Australian Government. Traditional owners negotiate the terms of the township lease with help from their land council. Traditional Owners also agree to the boundary of the Township Lease area. A township lease does not change the ownership of the land. It always has and always will remain Aboriginal land.
So here is the land. On this land is a township. Here is a school, here is a clinic, over there is the council office. This is your community. A township lease is negotiated for all of the land of the township including important infrastructure like barge landings and airstrips, but it only covers a Township as well as some land to allow for the community to grow in the future. It does not cover the country outside of the community.
A township lease is an agreement that lasts for a very long time – for up to 99 years. The Executive Director of Township Leasing will manage this lease on behalf of traditional owners and community. He is a dedicated impartial land administrator who grants subleases over lots in the township to businesses government and service providers.
A Traditional Owner consultative forum is established to talk about land use and the development in the township. The Executive Director makes the final decisions, however all decisions about important development and changes in land use is discussed and endorsed by the consultative forum members.
In the middle of town you may have a sacred site. Township leases protects sacred sites. No one can develop land where there is a sacred site in the township lease area. The township lease recognises the Northern Territory Sacred Sites Act and advice from Traditional Owners about cultural sites that need to be observed.
Not signing a township lease does not mean that the Australian Government will stop providing services. Important services like clinics and schools will continue with or without a lease.
Once a township lease is finalised the Executive Director will then issue occupiers a sublease. A sublease provides occupiers with a secure tenure. This means people or organisations can use the land they sublease with security, which encourages them to develop the land and promote economic development.
Traditional Owners will receive rent for the use of their land through payments made by the sublease holders. Rent money can be used by Traditional Owners to invest in a community or get a loan from a bank, which can then be invested in a business.
A township lease is not for every community and the negotiations can take some time. This is so that Traditional Owners are not being rushed into an important decision. A township lease requires full engagement and participation by Traditional Owners to help plan and work for the development and economic empowerment of their communities.

Frequently asked questions

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The Office of Township Leasing works to assist the Executive Director in managing Township Leases. Our role is to listen to the ambitions of Traditional Owners and help them realise their vision.

When Traditional Owners are considering a Township Lease, OTL will provide all the information necessary to make an informed decision. OTL staff will meet with Traditional owners and township community members to provide all the resources that are relevant to the Township.

OTL staff will arrange meetings with the Executive Director, arrange for different communities to meet with each other and learn from each other as well as provide their offices for any meetings and consultations.
OTL’s work will always be done side by side as partners with Traditional Owners.
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Having a Township Lease has a number of benefits for the Traditional Owners and the people who are part of the community.
As a Traditional Owner:
You are recognised as owners of the land in the Township
You continue to have a say about how land is used in the Township
You may receive funding to invest in the economic development through an up-front payment when the Township Lease is signed
You receive fair rent in return for people wanting to use your land
You and community members can buy or build your own home in the Township through a long-term home ownership sublease.
For your community, a Township Lease brings in a secure and regular land administration system that benefits the whole community. A Township Lease provides the following:
Establishes a strong and consistent land administration system for the entire Township area
Ensures the Traditional Owners will continue to have a say in how their land is used
Ensures that the development of Aboriginal land within the community is done responsibly and in compliance with the rules
Long-term tradeable tenure - providing security for business and economic development
It is an incentive for Government to invest in the community, manage Government assets (such as schools, clinics, and housing) and improve service delivery
Government will know their rights under a sublease and will know who to talk to about land use
Businesses will know their rights under a sublease which allows the business to plan for the future, invest in the community and operate within their rights
Businesses investing in the Township create jobs for local people and opportunities for business partnerships.
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No. Township Leases are voluntary agreements that do not affect the level of services provided to a community.
A community that agrees to a Township Lease will still receive basic services from Governments.
Communities that do not sign up to a Township Lease will still receive basic services from Governments.
The Northern Territory Government is responsible for providing health, education, police, power and water, and emergency services in the Northern Territory. These services will continue in a Township Lease community.

The Local Government Act says that Regional Councils will provide municipal services and some community services in communities. This includes rubbish collection, road maintenance, weed control, managing parks and public spaces, library services, night patrol and a range of other local services. The Regional Council will continue to provide those services when there is a Township Lease.

A Township Lease creates a secure and regular land administration system and provides certainty of tenure through long-term subleases. This means that Government and commercial developers can operate in the Township knowing they have secure land under their sublease.

The land administration system created by a Township Lease provides Governments and the Regional Council with secure tenure over their assets in the community.

This means that Governments can build infrastructure, including community housing, and have the authority to maintain them over time through their subleases.
Township Leases are voluntary agreements that do not affect the services provided to a community
Long-term leases over its buildings in remote Aboriginal communities in the Northern Territory allows the government to maintain facilities and services more easily and properly plan for future services and infrastructure

Once the Township Lease is signed, the Township will be surveyed to identify each individual block or ‘Lot’ in the Township.

The Executive Director, or Community Entity, will then provide long-term subleases over each Lot in the Township.

The prior rights of existing occupiers are recognised as part of this, particularly where there is already a Section 19 or some other kind of lease/ agreement in place.

Executive Director	Community Entity
Who manages the sublease?	If the Head Lease is held by the Executive Director, the Executive Director will issue subleases based on advice provided by Traditional Owners through Consultative Forum Meetings.	If the Head Lease is held by a Community Entity, the Entity will issue subleases based on their identified consultation procedures.
Who collects the rent and where does it go?	The Executive Director will collect the rent from the subleases. The rental revenue collected through the Township Lease can then be reinvested in social and economic development opportunities in the Township.	The Community Entity will collect the rent from the subleases. The rental revenue collected through the Township Lease can then be reinvested in social and economic development opportunities in the Township

If you would like further information or have any more questions on Township Leasing, you are welcome to contact the OTL Office. Contact us | Office of Township Leasing(Opens in a new tab/window)