Sublet aquaculture lease - information kit
When is a sublet agreement required?
An application to sublet a lease is required when:
- The current lessee does not hold an aquaculture permit, or
- The current lessee does not hold an aquaculture permit in the same name as they hold the lease in (for example, the permit is held by a company and the lease is held by a director of that company), or
- The current lessee would like another permit holder to be responsible for the farming activities on their aquaculture lease.
A sublet agreement changes the authorised person or company who is permitted to undertake aquaculture on a lease without changing the ownership of that lease.
Who is the lessee and the sub-lessee?
Lessee - the individual or corporation who owns the lease and is making application to sublet the lease to another permit holder.
Sub-lessee - the individual or corporation whose aquaculture permit will authorise the lease under the sublet agreement. The sub-lessee must hold a current aquaculture permit.
When can an aquaculture lease be sublet?
A sublet application may be submitted at any time while the lease is current. A lease that has expired, been surrendered or cancelled cannot be sublet.
How is an application to sublet an aquaculture lease duly made?
- Complete the lease sublet application form. Every section of the form must be completed in clear and legible print. Ensure all parties (lessees and permit holders) sign the form. An incomplete application form will result in the rejection of the application.
- Submit payment of the application fee (refer to the aquaculture fee schedule).
What happens to the lease and permit fees already invoiced for the current billing period?
Lease rent remains the responsibility of the lessee.
After the sublet has been completed, the relevant permit fees will be redirected to the new permit holder in the next billing period (on 1 July). Until then, any existing permit fees remain the responsibility of the former permit holder.
Can a lease be sublet to any person?
No. The sub-lessee must be:
- An individual or corporation who is not disqualified from holding an aquaculture permit under section 161 of the Fisheries Management Act 1994.
- An individual or corporation with no overdue lease or permit fees on their aquaculture account.
- An individual or corporation who, in the Minister’s opinion, is not considered to have a poor record of managing one or more leased areas.
Does the sub-lessee need to hold an aquaculture permit?
Yes. The sub-lessee must hold a current aquaculture permit or have an application pending with DPIRD.
How can the sublet application fee be paid?
When a sublet application is submitted, an invoice will be raised for the application fee. Payment options will be provided on the invoice.
Refer to the aquaculture fee schedule for information on prescribed fees.
Is the application fee refundable if the application is withdrawn or refused?
If a sublet application is withdrawn or refused, the department is not required to refund the application fee. The department may, however, refund the whole or part of the fee in such circumstances as considered appropriate.
What happens after an application to sublet a lease is lodged?
DPIRD will check the application to ensure all matters have been addressed. If anything is missing or outstanding, the application will not be progressed until the outstanding requirements are met. If these are not met in a reasonable timeframe, the application may be refused.
Once all requirements are met, the department will update its records with the details of the sublet. The relevant aquaculture permit is amended to reflect the sublet agreement and an updated copy is sent to the permit holder.
The sublet will remain in force until such time as one party terminates the agreement, or until the lease expires, is surrendered or cancelled.
What happens if the lease expires?
If the lease expires, the sublet agreement is automatically cancelled. However, if the lessee applies to renew the lease and the renewal is approved, the sublet agreement continues automatically.
How is a sublet agreement terminated?
The Minister may terminate a sublet agreement at any time for any reason.
Either the lessee or the permit holder can cancel the sublet agreement at any time. If the permit holder requests sublet cancellation, the lessee will be given a period of time to make an alternative arrangement for their lease. Likewise, if the lessee requests sublet cancellation, the permit holder will be given a period of time to remove any stock or infrastructure belonging to them from the lease.
Under what circumstances would an application to sublet a lease be refused?
An application to sublet an aquaculture lease may be refused if:
- the sub-lessee is disqualified from holding an aquaculture permit.
- the lessee or sub-lessee fails to submit or complete any requirements of the transaction within a specified timeframe.
- the lessee or sub-lessee has overdue debt which has been outstanding for more than 90 days.
- the lessee has failed to clean up a previously terminated lease area.
- the sublet of the lease is not in the public interest.
Before an application is refused, DPIRD may write to the applicants inviting them to lodge objections to the refusal of the sublet application.
What are the lessee’s and permit holder’s responsibilities following a sublet agreement?
Lessee | Sub-lessee (permit holder) |
|---|---|
Owns the lease | Is permitted to undertake aquaculture on the lease |
Is responsible for:
| Is responsible for:
|
When is a sublet agreement not required?
When a permit is held by more than one individual and the associated lease is held by at least one of those individuals, then a sublet agreement is not required. Likewise, if a permit is held by a company and that company is also a lessee, then a sublet agreement is not required.
If a permit is held by a company and the associated lease is held by a director of that company (or vice versa), then a sublet agreement is required as the lessee and permit holder are two separate legal entities.
Must the lease be covered by public liability insurance?
Yes. All aquaculture leases must be covered by public liability insurance. This is the responsibility of the permit holder. Each year, DPIRD will conduct an audit on public liability and may request information from permit holders regarding their public liability insurance.
Where can more information about subletting an aquaculture lease be obtained?
For information about subletting an aquaculture lease, contact aquaculture administration via email at aquaculture.administration@dpi.nsw.gov.au.
Application checklist
This checklist will help you to lodge a successful sublet application.
- Has the lessee completed every section of the application form?
- Has the application form been signed by both the lessee and proposed sub-lessee?
- Does the proposed sub-lessee hold a current aquaculture permit, or have they submitted an application for a new class A aquaculture permit?
- Is the lease current at the time of application? If the lease is about to expire, has an application to renew the lease been submitted?
- Have any outstanding aquaculture accounts been paid?
- Has the lessee addressed any outstanding clean-up issues on an expired, cancelled or otherwise terminated lease area?
