Commonwealth Consolidated ActsGrant of lease
(1) A Land Trust may grant a lease of a township to an approved entity if:
(a) the Minister consents, in writing, to the grant of the lease; and
(b) the Land Council for the area in which the land is situated directs, in writing, the Land Trust to grant the lease.
A consent or direction under this subsection is not a legislative instrument.
(1A) If an approved entity is the Commonwealth or a Commonwealth authority (within the meaning of the Lands Acquisition Act 1989 ), the Commonwealth or authority is authorised to acquire a lease under this section.
Land Council direction
(2) A Land Council must not give a direction under subsection (1) for the grant of a lease unless it is satisfied that:
(a) the traditional Aboriginal owners (if any) of the land understand the nature and purpose of the proposed lease and, as a group, consent to it; and
(b) any Aboriginal community or group that may be affected by the proposed lease has been consulted and has had adequate opportunity to express its view to the Land Council; and
(c) the terms and conditions of the proposed lease (except those relating to matters covered by this section) are reasonable.
(3) If a Land Council, in giving a direction for a grant of a lease, fails to comply with subsection (2), that failure does not invalidate that grant unless the approved entity to whom the grant was made procured the direction of the Land Council by fraud.
Term of lease
(4) The term of a lease granted under this section is the term specified in the lease (which must be at least 40 years and no more than 99 years). The term specified in the lease must not be varied. This subsection is subject to subsections (4A) and (5).
(4A) A lease granted under this section may provide for the variation of the lease by way of one or more extensions of the term of the lease. The extensions must not result in the term of the lease being more than 99 years.
Interpretation
(4B) Subsection (4A) does not limit variations of the lease in relation to other matters.
Operation of Lands Acquisition Act
(4C) If an approved entity is the Commonwealth or a Commonwealth authority (within the meaning of the Lands Acquisition Act 1989 ), the Commonwealth or authority is authorised to acquire the interest (within the meaning of that Act) in land that arises under an extension of the term of a lease granted under this section (as mentioned in subsection (4A)).
Grant of replacement lease
(5) If, at least 20 years before the end of the term of a lease (the original lease ) granted under this section (including that term as extended as mentioned in subsection (4A)), a Land Trust grants another lease under this section to the same approved entity covering the area of land concerned (whether or not the other lease also covers other land), the original lease ends at the time the other lease takes effect.
Limitation on grant of replacement lease
(5A) The Minister must not, under subsection (1), consent to the grant of another lease as mentioned in subsection (5) unless the Minister is satisfied that the grant of the other lease would not adversely affect a sublease or other right or interest derived from the original lease mentioned in subsection (5).
Payments
(6) A lease granted under this section must not make provision for the lessee to make a payment to a person other than the lessor.
Transfer of lease
(8) A lease granted under this section may be transferred to another approved entity:
(a) with the written approval of the Minister; and
(b) in accordance with the terms and conditions of the lease.
An approval under paragraph (a) is not a legislative instrument.
(8A) The Commonwealth or a Commonwealth authority (within the meaning of the Lands Acquisition Act 1989 ) is authorised to:
(a) transfer a lease granted under this section in accordance with subsection (8); or
(b) acquire a lease that is transferred in accordance with subsection (8).
Lease not to be used as security
(9) A lease granted under this section must not be used as security for a borrowing.
Preserving any existing right, title or other interest
(10) Any right, title or other interest in land the subject of a lease granted under this section that existed immediately before the time the lease takes effect is preserved as a right, title or interest in that land after that time.
(11) If that right, title or other interest was granted by the Land Trust, then, at the time the lease granted under this section takes effect, that right, title or other interest has effect as if it were granted by the approved entity on the same terms and conditions as existed immediately before that time.
(12) If:
(a) subsection (11) applies in relation to a right, title or other interest; and
(b) the lease is transferred in accordance with this section; and
(c) the right, title or other interest existed immediately before the time the transfer takes effect;
then, at that time, the right, title or other interest has effect as if it were granted by the transferee on the same terms and conditions as existed immediately before that time.
Subleases
(13) This section does not prevent a sublease of a lease granted under this section.
(14) A lease granted under this section must not contain any provision requiring the consent of any person to the grant of a sublease of the lease.
(15) A lease granted under this section must not contain any provision relating to the payment of rent, or the non‑payment of rent, in relation to a sublease of the lease.
(16) The Commonwealth or a Commonwealth authority (within the meaning of the Lands Acquisition Act 1989 ) is authorised to acquire, or grant, a sublease of a lease granted under this section in accordance with the terms and conditions of the lease.
Licences
(17) This section does not prevent the lessee of a lease granted under this section from granting a licence in relation to land covered by the lease.
(18) The Commonwealth or a Commonwealth authority (within the meaning of the Lands Acquisition Act 1989 ) is authorised to acquire, or grant, a licence in relation to land covered by a lease granted under this section in accordance with the terms and conditions of the lease.
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