Subdivision of Oyster Lease Information Kit
What is a subdivision of an oyster lease?
A subdivision of an oyster lease is where a lessee divides a current oyster lease into two or more leases. The new areas become different entities and are covered by separate lease agreements.
Who is the lessee?
The lessee is the individual, partnership or corporation owning the lease. An application to subdivide an oyster lease must be made with the consent of all parties concerned.
When can an oyster lease be subdivided?
A subdivision application may be submitted at any time during the currency of the lease. Any lease that has expired, cancelled, or has been surrendered cannot be subdivided. If a mortgage or other interest is noted on the lease, a subdivision application cannot be processed without the written consent of any other party with a registered interest in the lease. If the lessee has overdue rent, contributions or other amounts payable to the Minister in respect to that or any other lease, the application may be rejected.
How is an application duly made to subdivide an oyster lease?
- Complete the lease subdivision application form. This involves filling out every section of the form in clear and legible print. An incomplete application form will result in the application being rejected.
- Submit with your application a draft plan/sketch which shows the proposed boundaries of the subdivided leases.
- Attach the original lease documents (deeds and plan). If the lease documents are not supplied with the application form, the application will be rejected. If the deeds are lost or destroyed, the current lessee(s) must complete the statutory declaration on the back of the form and replacement documents applied for with the relevant fee (see fee schedule).
- Submit all payments with the application. The applicant must submit the subdivision application fee (see fee schedule) and any other payment required with the application. If payment is made at a local office of NSW DPI, a copy of the receipt must be attached to the application. Any overdue account matters relating to the relevant aquaculture account should be settled prior to an application being lodged.
Do I need to provide a surveyed plan as part of the application process?
Yes. An approved survey and new lease plan will be required, prior to the lease area being subdivided. An Aquaculture Officer will contact you when the initial assessment of your application has been completed advising you to engage a surveyor to submit the required survey plans. For further information on Aquaculture Lease Surveys please refer to Specifications for Surveyors or alternatively, contact Aquaculture Administration on 02 4982 1232.
What is the maximum term of a lease created by subdivision?
The maximum term of leases created by subdivision is the same as the remainder of the term of the original lease.
Are the subdivided lease areas given new oyster lease numbers?
Yes. The subdivided lease will not retain the original number. New oyster lease numbers will be allocated.
Who arranges the ordering and installation of lease markings and lease signs?
After the lease is approved for subdivision, NSW DPI sends an oyster lease sign order form to the successful applicant (lessee), specifying the quantity of lease signs required to adequately mark the leases.
The applicant must place the order and arrange payment, delivery and installation of the lease signs. The lessee is also required to mark the lease boundaries and install the lease signs within 30 days of taking delivery of the lease signs.
Does the subdivision of an oyster lease attract Goods and Services Tax?
No. Goods and Services Tax is not payable on an application for a subdivision.
Does the subdivision of an oyster lease attract stamp duty?
No. However, if a lease created through the subdivision is sold (transferred) to another person then stamp duty is payable on the sale of that lease - see Aquaculture Lease Transfer Information.
How can the subdivision application fee be paid?
There are several methods available for the payment of fees.
- Submit a cheque or money order with your application, made payable to Department of Trade & Investment.
- Pay at any office of NSW DPI using the methods available there and attach the receipt to the application.
- Complete the credit card section on the application form to make payment by credit card.
Is the processing fee refundable if the application is withdrawn or refused?
If an application to subdivide an aquaculture lease is withdrawn or refused, NSW DPI is not required to refund the processing fee. The department may however, refund the whole or part of the fee in such circumstances as considered appropriate.
Where can more information about subdividing an oyster lease be obtained?
More information about subdividing an oyster lease may be obtained from Aquaculture Administration at Port Stephens on 02 4982 1232.
Information about the Aquaculture Lease Area Condition Statement (ALAC)
What is the purpose of an ALAC?
The purpose of the ALAC is for all parties subject to the lease subdivision to identify and agree on the condition of a lease area or work required, prior to the subdivision being progressed. The ALAC aims to improve the time taken to process oyster lease transactions. The lease condition statements relate mainly to neat and tidy and marking provisions.
Where do I find information about lease condition standards?
Standards for lease marking, signs, neat and tidy, other structures, storage and mooring can be found in the NSW Oyster Industry Sustainable Aquaculture Strategy (OISAS), at NSW DPI Fisheries Offices or by contacting Aquaculture Administration on 02 4982 1232.
What parts of the form must I complete?
All condition statements 1 to 11 must be answered and the ALAC declaration signed and dated. Photographs of the lease area with the lease number, date and time they were taken written on them must be attached. If the ALAC is incomplete the application will be rejected and returned to the applicant.
What if I answer No to any of the lease condition statements?
Where any one item from 1 - 11 on the ALAC is answered No the subdivision application will be rejected unless there is an approved work plan. To obtain an approved work plan complete a work plan form. After completing the work plan form the District Fisheries Officer for the area where the lease is situated will need to approve and sign the work plan – always leave a message if the office is unattended. The approved work plan must then be submitted with the rest of the subdivision application to NSW DPI Aquaculture Administration at Port Stephens. Alternatively, contact Aquaculture Administration on 02 4982 1232.
Who has to sign the ALAC declaration?
All current aquaculture permit holders who have the lease number listed on their aquaculture permit.
- All current lessees (if two or more people own the lease they all must sign).
If the ALAC declaration is not signed by all parties the application will be returned as incomplete.
I do not agree with the answers on the lease condition statement. Do I have to sign it?
- DO NOT sign it until you agree with it.
- Talk with all parties involved and make it a truthful condition statement BEFORE anyone signs the declaration.
- If an agreement over the lease condition statement can not be made you can engage the District Fisheries Officer to complete the statement for all parties to sign. A fee of $250 is payable to NSW DPI for this service.
How do I get the District Fisheries Officer to complete the ALAC?
- Contact the NSW DPI District Fisheries Office for the area where the lease is situated.
- Once the ALAC has been completed and signed by the District Fisheries Officer it will be sent to all relevant parties for signature. All people involved in the transaction MUST sign the statement and submit it with the rest of the subdivision application.
What happens if the condition statement is false or misleading?
Where false or misleading information is provided penalties may apply and the work may be completed by NSW DPI and costs recovered. Action may also be taken to have the lease and aquaculture permit suspended or cancelled.
This checklist will help you to lodge a successful subdivision application.
- Has the applicant completed every section of the application form?
- Has the application form been signed by all owners of the lease?
- Are the lease deeds attached, or a statutory declaration for lost or destroyed documents completed and replacement fee submitted?
- Is the processing fee (made payable to Department of Trade & Investment), or receipt of such fee, or credit card details supplied with the application?
- Is the lease current at the time of application?
- Is the lease covered by current public liability insurance?
- Have any outstanding account matters been settled prior to the lodgement of the application?
- If a mortgage or other interest is noted on the lease documents, has the written consent of the mortgagee or other party been submitted with the application?
- If you have answered No to any of the lease condition statements 1 - 11 on the ALAC is an approved work plan attached?