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Department of Primary Industries

Aquaculture lease tenures and renewals

Lease tenure

An aquaculture lease is a tenure over public water land for the purpose of aquaculture. In line with the section 167 of the Fisheries Management Act 1994, aquaculture leases are let for a maximum term of 15 years. The lessee is entitled to the first renewal for another term of 15 years, and then subsequent renewals subject to conditions.

Lease renewals

NSW DPI progresses approximately 150 lease renewal applications each year.

An application to renew a lease may be rejected or refused if:

  • The application is incomplete, or the application fee is not paid.
  • The lessee has outstanding debt.
  • The lessee has failed to clean-up a terminated lease area.
  • The lessee is a disqualified person.
  • The lease area is no longer available for aquaculture, or it is in the public interest to refuse the application.

Permitted lease transactions within a lease’s tenure

Within the tenure of a lease, the lessee may apply to:

  • Transfer (sell) the lease.
  • Surrender (either whole or part of) the lease so the area is returned to public water land.
  • Sublet the lease to another current permit holder.
  • Subdivide the lease to create two smaller areas.
  • Consolidate the lease with an adjoining lease to create one larger area.
  • Register or discharge a mortgage over a lease.
  • Vary the marking requirements of a lease.

Activities not permitted on a lease

Activities not permitted include:

  • Cultivating or holding stock for another person without a sublet agreement being in place.
  • Cultivating stock or installing infrastructure on an expired or otherwise terminated lease.
  • Installing cultivation material outside the boundaries of the lease, as shown on the approved lease plan.
  • Using cultivation equipment not endorsed by the NSW Oyster Industry Sustainable Aquaculture Strategy 2021 - Fourth Edition.
  • Depositing waste in the lease area.
  • Constructing any kind of structure without the relevant approvals.
  • Harming fauna, flora or habitat without the relevant permit.
  • Cultivating or releasing species not approved by the aquaculture permit.

Lease mortgages

An aquaculture lease is “real property” and as such, a mortgage may be endorsed over the lease.

In accordance with the Fisheries Management Act 1994, the Minister must endorse on a lease document the particulars of any mortgage, charge or other interest to which the lease is subject.

If a mortgage or other interest is endorsed over a lease, NSW DPI cannot progress a lease transaction (e.g., lease transfer) without the written consent of the mortgagee or interested party.

Leases that are not renewed

If a lessee does not renew a lease before the date of expiry, the lease will be terminated. The lessee will be issued with a notice under section 171 of the Fisheries Management Act 1994, requiring the removal of all improvements (cultivation material, lease marking and structures) within a specified period (generally 3 months). Once remediated, the lease is returned to public water land.

If a lessee fails to clean up a terminated lease, the department will engage contractors to complete the work and the relevant lessee will be charged for the associated clean-up costs.

If the lease is suitable for aquaculture, the department may decide to relet the area via a public tender process.

More information

Please contact aquaculture administration via email at aquaculture.administration@dpird.nsw.gov.au