Township Leasing Model

Office of Township Leasing

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.

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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.

Residents of Townships established on Aboriginal land held in communal Aboriginal title have a right to experience the same opportunities, services and facilities that are available to residents in other Australian towns and cities. Secure land tenure supported through sound land administration is the foundation upon which this right can be realised.

The arrangements under Section 19A of the Aboriginal Land Rights Act (Northern Territory) 1976 (ALRA), provide the mechanism to establish secure, tradeable land tenure for Townships established on Aboriginal land while maintaining the underlying Aboriginal land title. This is the Township Leasing Model.

The Township Leasing Model offers certainty of tenure, the reliability of long term rental income streams and an enabling foundation for economic and social development. This foundation in turn supports Traditional Owners to build capability within their organisations, establishing sound cultural decision making and articulating and implementing their vision and aspirations for their communities.

The Township Leasing Model aligns with key policy initiatives. The four Closing the Gap Priority Reforms are enlivened through the implementation of the Model. The Model focusses on establishing and supporting locally controlled, culturally appropriate decision making, which also provides insight and support for the local and regional Voice.

The Executive Director of Township Leasing (Executive Director) and the Office of the Executive Director, the Office of Township Leasing (the Office or OTL) is the lead agency in implementing the Township Leasing Model to ensure tenure is secure and enabled to its maximum potential.

The Township Leasing Model does not extinguish the underlying tenure or cultural responsibility for the land.

Township Leasing Model

Welcome to The Office of Township Leasing