Class A Aquaculture Permit - Information Kit
A Class A aquaculture permit is required to carry out extensive aquaculture on public water land in NSW. The permit may be endorsed for the cultivation of various species including oysters and other shellfish where feeding of the shellfish is not required. This information kit will provide you with assistance in completing your application and answer some questions you may have.
Prior to entering the NSW aquaculture industry, prospective permit and lease holders should become familiar with Part 6 of the Fisheries Management Act 1994, the Fisheries Management (Aquaculture) Regulation 2017 and the NSW Oyster Industry Sustainable Aquaculture Strategy (OISAS).
Do I need an aquaculture permit to grow oysters?
Yes. A Class A aquaculture permit is required in NSW. A person/corporation must not undertake oyster farming except under the authority of an aquaculture permit issued by the NSW Department of Primary Industries (NSW DPI). All oyster farming activities on an oyster lease are required to be conducted under the authority of a current Class A aquaculture permit.
What information do I need to provide in Part 1 of the Application Form - Applicant Details?
You will need to provide the name and contact details of the individual/partnership or corporation who will be the permit holder. In this section, you are required to nominate at least one mobile phone number for NSW DPI SMS alerts. Where the applicant is a corporation, you will also need to provide a copy of:
- A current ASIC extract
The above documentation is available from the Australian Securities and Investments Commission (ASIC).
In Part 1, you will also need to list all current aquaculture leases that will be authorised by your Class A aquaculture permit, if granted. You will also need to provide details of the working depot, from where you will undertake your land based operations.
What does “disqualified from holding an aquaculture permit” mean?
Under Section 161 of the Fisheries Management Act 1994, the Minister has the power to disqualify a person or corporation from holding an aquaculture permit, following the cancellation of their permit. This action is normally in response to outstanding debt.
NSW DPI reserves the right to refuse any application made by a person or corporation who is disqualified from holding an aquaculture permit. Any person/company previously disqualified from holding an aquaculture permit, and who wishes to re-enter the aquaculture industry, must ensure that their details are first removed from the disqualified register. This is usually achieved by paying any outstanding debt owed to the State with respect to previous aquaculture businesses operated by the applicant.
Why do I need access to a working depot?
A Class A aquaculture permit will not be granted unless the applicant can demonstrate access to an approved working depot site. To ensure that new entrants into the oyster industry undertake their activities in an environmentally sustainable and economically viable manner, it is essential that they have access to suitable working depot sites that have been approved for shellfish farming activities by the appropriate authorities. These sites are required to enable the oyster farmer to carry out day-to-day activities, such as the storage of materials, culling and drying of oysters, the loading and unloading of equipment and depuration.
In the past, there have been a number of instances where oyster farmers have established working depot sites illegally on Crown land; established working depots on private land without obtaining proper approval from local council; or have established working depots in unapproved structures built over oyster leases. In many instances, these practices have resulted in conflict with other Government agencies, councils, adjacent landowners, other members of the industry and the general public.
It is the responsibility of the applicant to demonstrate that the working depot site on which they intend to carry out their activities has the appropriate approvals under the Environmental Planning and Assessment Act 1979. Provision of the following with the permit application will be considered as adequate evidence of approval:
- An approval issued by the Department of Lands, such as a lease or licence authorising oyster depot activities (including a subletting agreement); or
- An approval issued by the local council to carry out oyster depot activities on private land (incl. industrial estates, factories etc.); or
- The acquisition of an oyster lease with an approved structure, which adjoins land with approved land based access (the onus is on the applicant to demonstrate that the structure and land based access has been approved by the appropriate authority).
Why do I need to nominate a lease security arrangement?
In January 2001 the Aquaculture Lease Security Arrangements (bonds) came into effect in NSW. All oyster farmers with either a Class A and/or B aquaculture permit that authorises Class 1 or 2 leases are required to enter into an arrangement with NSW DPI to provide security for their aquaculture leases.
The bonds system was introduced to ensure that the industry shares the responsibility in the future for problems arising from lease management and maintenance issues.
There are three types of arrangements available to Class A aquaculture permit holders with Class 1 leases.
Arrangement 1
A cash deposit at the prescribed rate per hectare (refer to the payment schedule for the prescribed rate).
Arrangement 2
A guarantee issued by a bank, building society, credit union or corporation authorised to carry on insurance business in Australia, guaranteeing to indemnify NSW DPI to the required amount.
Arrangement 3
A system of annual contributions linked to the total amount of lease hectares held by the permit holder ($40 per hectare or part thereof).
Who needs to sign the applicant(s) declaration?
All applicants must sign the declaration. An application lodged by a company must be signed by two directors, or one director and a secretary. If the company is a sole director company, and the sole director is also the sole secretary, then the sole director must state this next to his/her name.
Is there an application fee for a Class A aquaculture permit?
Yes. The prescribed fee is listed in the aquaculture fee schedule. This schedule provides a list of all fees and charges that may be payable as an aquaculture permit holder.
To pay the application fee by credit card fill out the credit card authority in the application form. Note that the credit card details will be appropriately discarded following processing of the payment.
Other than the application fee, what other fees and charges may be payable following the granting of my aquaculture permit?
In addition to the permit application fee, there are additional fees and charges that will be incurred annually by the permit and/or leaseholder, which are listed in the fee schedule. Fees and charges often increase annually, in accordance with the Consumer Price Index (CPI).
To ensure the financial viability of your aquaculture operation, you should be aware of the following recurrent fees and charges applicable to a Class A aquaculture permit:
Annual permit contribution fee
As a condition of holding an aquaculture permit, permit holders are required to pay an annual contribution towards the cost of administration and management of the aquaculture industry.
Lease rental
Lease rental is charged annually to the leaseholder, based on a per hectare rate (or part thereof), rounded up to the nearest whole hectare. Minimum rent applies. Goods and Services Tax (GST) at the rate of 10% applies to lease rent.
Research contribution
A research contribution is charged to the permit holder, based on a per hectare rate (or part thereof), rounded up to the nearest whole hectare. It is calculated on the total permit area (total lease hectares held under a permit). Research contributions are deposited into a Trust account administered by the Minister for Primary Industries. Industry make recommendations to the Minister, through the Aquaculture Research Advisory Committee (ARAC), regarding expenditure of funds from this Trust account. In the past, contributions have been made to the Fisheries Research & Development Corporation (FRDC) for research grants to assist the aquaculture industry.
NSW Shellfish Program
The NSW Shellfish Program is a compulsory, industry funded program that assists in ensuring the public health safety of oysters and other shellfish grown and harvested from NSW waters. Fees to manage this scheme are invoiced and collected by the NSW Food Authority. For further information contact the NSW Food Authority.
Public liability Insurance and Indemnity
When a new aquaculture permit is issued, the permit holder must sign a Deed of Undertaking and Acknowledgement (U&A) agreeing to indemnify the State of NSW, the Minister and their servants and agents against all action, suits, claims and demands in relation to any accident or injury to any person or property in respect to the lease(s) that the permit covers. Each permit holder must maintain Public Liability Insurance (PLI) cover to a minimum of $10 million.
Permit holders are required to submit their insurance details annually (or as required). If a lease is subject to a subletting arrangement, the lease details must be listed on the insurance policy.
Will I have sufficient working capital?
The day-to-day running of an aquaculture business can be expensive. Sufficient working capital should be available to ensure the operation of the lease(s) in an efficient and productive manner. NSW DPI recommends that any person intending to enter the aquaculture industry consult an accountant or business management firm to provide advice on the financial aspects of the operation.
What other licences will I need to obtain as part of my aquaculture business?
Permit holders wishing to commercially harvest shellfish in NSW must obtain a Seafood Licence - Shellfish Cultivation or Harvest from the NSW Food Authority. Where necessary a permit holder may also be required to demonstrate access to a licensed oyster purification facility. The NSW Food Authority licence all NSW purification plants.
Should your aquaculture permit be issued, you are required to contact the NSW Food Authority to apply for a Seafood Licence - Shellfish Cultivation or Harvest. For further information, contact the NSW Food Authority, Taree Office on 02 6552 3000.
Can I transfer my aquaculture permit?
No. Aquaculture permits are not transferable and remain in force until cancelled at the request of the permit holder or by NSW DPI.
The permit holders listed on the permit cannot be changed. If there are changes to a business partnership, corporation or business name, or group of farmers working under one permit, then a new permit must be applied for and assessed by NSW DPI.
If an oyster farming business is sold, the intended new owner of the business must first apply for and be issued with a new aquaculture permit if one is not already held. Any oyster leases may then be transferred to the new business owner/permit holder.
What if I no longer require my permit?
An aquaculture permit may be cancelled at the request of a permit holder under Section 159 of the Fisheries Management Act 1994. All lease/permit fees and charges payable on the permit holder’s aquaculture account will need to be paid before permit cancellation can occur.
NSW DPI may cancel an aquaculture permit under Section 160 of the Act. A permit holder can request an internal review following the cancellation of their permit. If not satisfied with the outcome of this review, an application can be made to NSW Civil & Administrative Tribunal (NCAT) for a review of the decision to cancel the permit.
What is a Commercial Farm Development Plan (CFDP)?
It is a legal requirement under Section 145 of the Fisheries Management Act 1994 that a Class A aquaculture permit application be accompanied by a Commercial Farm Development Plan (CFDP) that describes how you plan to operate your shellfish business and justify your use of public water land for the purpose of carrying out shellfish aquaculture.
As part of your CFDP you are required to submit a Biosecurity Plan and a Lease Maintenance and Development Plan (LM&DP).
What is a Biosecurity Plan (BP)?
A BP identifies the risks associated with diseases and pests that have the potential to impact your shellfish farming business, or the environment, and details measures that you will undertake to control these risks. Your BP should demonstrate an understanding of your biosecurity responsibilities as a permit holder in regard to the Biosecurity Act 2015 and the Fisheries Management Act 1994 and the Fisheries Management (Aquaculture) 2017. Please see the Biosecurity Risk Management Plan Guidelines (PDF, 110.79 KB).
What is a Lease Maintenance and Development Plan (LM&DP)?
A LM&DP lists all oyster leases that will be operated under the Class A aquaculture permit should it be granted. Your LM&DP should describe the current cultivation infrastructure and the condition of the infrastructure present on each lease area. Your LM&DP should indicate how the leases will be maintained in accordance with Chapter 7 (Lease Marking) and Chapter 8 (Lease Tidiness) of the NSW Oyster Industry Sustainable Aquaculture Strategy (OISAS). Please see the Lease Maintenance and Development Plan Guidelines (PDF, 71.67 KB).
Where lease area that is going to be authorised by the Class A aquaculture permit is undeveloped, the applicant is required to indicate what action will be taken to develop the cultivatable area over the next five (5) years.
To ensure the financial sustainability of the farming business, it is critically important that the applicant is fully aware of the costs associated with the operation and maintenance of oyster aquaculture leases and sufficient funds are allocated to undertake the necessary work. This should be demonstrated when completing the financial forecast section of the application.
Where the lease area that is being transferred to the new Class A aquaculture permit has lease marking or lease tidiness issues, the applicant may be issued with a Notice to Comply and will be made responsible for bringing the area to the required OISAS standards. It is therefore important to discuss the current NSW DPI compliance status of the lease with the vendor prior to completing and lodging the lease transfer documents.
Applications for oyster aquaculture permits will be assessed by NSW DPI against the Best Practice Standards in OISAS. Most applicants find that going through the process of preparing a CFDP leaves them better prepared to commence shellfish farming as they are required to consider issues that they otherwise may have overlooked.
To enable NSW DPI to properly assess your CFDP, you are encouraged to carefully answer each question with as much detail as possible. You may be requested to supply further information. If you do not provide all the information requested, your aquaculture permit application may be refused by NSW DPI.
For assistance, contact Aquaculture Administration on 02 4916 3900 or view the Aquaculture page.
How long does it take to process an application?
For information on application processing times, refer to the Aquaculture Transaction Fact Sheet
