Division 10 of Part X of the Land Act 1996 creates a lease with a job to do rather than a use to enjoy. It is the mechanism by which raw government land in towns becomes serviced, subdivided allotments.
Section 103 — the planning officials
Division 10 brings in two officers from the physical planning system:
- the Physical Planning Board established under the Physical Planning Act 1989 with jurisdiction over the land; and
- the Chief Physical Planner appointed under section 6 of that Act.
This is the one lease type where planning approval is built into the Land Act process rather than running beside it.
Section 105 — the certificate that must come first
Before land is offered for lease under Division 10, the Chief Physical Planner or a delegate shall:
- certify that the land is (A) within a physical planning area; (B) properly zoned; (C) suitable for subdivision; and (D) suitable for release — and, after consultation with the relevant authorities, that the State will not incur undue expense in providing electricity, water and other services to the proposed subdivision;
- provide a plan showing the location of the land, and an assessment of its subdivision potential; and
- specify the development conditions that will apply to the lease, and the conditions that will apply to infrastructure and zoning when part or the whole of the land is later surrendered.
Subdivision creates an obligation on the State to service the new allotments. Section 105(a)(ii) requires that question to be answered before the land is released, not after the lots are sold.
Sections 104 and 106 — tender and what the tender must contain
Subject to section 69, government land in a physical planning area suitable for subdivision shall in the first instance be offered for lease by tender. The tender document contains the section 68 particulars, the Chief Physical Planner’s information under section 105, the reserve price, and anything else the Departmental Head thinks fit or the Minister directs.
A tender must specify the amount offered and be accompanied by:
- a preliminary proposal for the subdivision;
- a preliminary sketch plan of the proposed subdivision;
- a preliminary proposal for the infrastructure; and
- evidence of the financial and other resources of the tenderer available for the subdivision.
A tender below the reserve price is invalid and shall not be considered. The successful tenderer pays the tendered amount and is entitled to an urban development lease.
When considering tenders or applications for an urban development lease, the Land Board shall consist of five persons, including the Chairman or a Deputy Chairman, the Surveyor General or a delegate, and the Chief Physical Planner or a delegate.
This is the only lease type for which the Act prescribes a special composition of the Board — because the decision is as much a surveying and planning judgement as a land-allocation one.
Section 108 — five years, and four covenants
An urban development lease shall be for a term not exceeding five years — far shorter than the 99-year maximum elsewhere in Part X, because it is a development vehicle, not a tenure.
It shall contain covenants that the lessee will:
- within one year of the grant (or such further time as the Minister allows), submit to the Physical Planning Board an application for full planning permission or subdivision and zoning, and a final proposal for subdivision, together with survey plans;
- conform with a determination of the Physical Planning Board under section 108(3);
- after the Board’s approval, submit a cadastral survey plan of the subdivision to the Surveyor General for registration; and
- observe such other covenants and conditions, including the restrictions on disposal prescribed by section 70, as the Land Board thinks proper or as are prescribed.
The lease may also require the surrender of areas not required for business or residence purposes under the final proposal, and may contain covenants to be inserted in the new leases granted on surrender of the developed parts.
Section 109 — the deadline, and forfeiture
The final proposal for subdivision, the plan of the subdivision design, a timetable for development work, and the application for full planning permission, subdivision and zoning must be lodged with the Physical Planning Board within twelve months of the grant — or such further time as the Minister allows on the Board’s recommendation.
If the final proposal and the application for full planning permission are not submitted within one year (or such further time as the Board allows), the Board may recommend to the Minister that the lease be forfeited — section 109(2).
On a five-year lease, losing the first year is fatal to the project. Apply for an extension in writing, on the Board’s recommendation, well before the anniversary.
In approving a final proposal, the Board shall decide whether it appears suitable under section 5 of the Physical Planning Act 1989, determine the periods during which the stages of development are to be carried out, and specify the covenants and conditions relating to physical planning that will go into the new leases granted under section 110. The Board may vary the staging determination on such conditions as it thinks proper.
A cadastral survey plan conforming to the approved final proposal must be lodged for registration by the Surveyor General within six months of the Board’s approval; for a staged development, it must illustrate each subdivisional stage and any residue parcel at each stage.
Section 110 — surrender and the new leases
The lease ends by being converted. Developed parts of the subdivision are surrendered and new leases are granted over them — ordinarily business or residence leases carrying the covenants the Physical Planning Board specified. A new lease granted under section 110 is one of the grounds on which land may be exempted from advertisement under section 69(2)(j), so the developed lots are not re-tendered.
The timeline at a glance
| Step | Deadline | Section |
|---|---|---|
| Chief Physical Planner certifies and provides plans | Before land is offered | 105 |
| Land offered by tender; five-member Land Board considers | — | 104, 106 |
| Lease granted | Term not exceeding 5 years | 108(a)(i) |
| Final proposal and full planning application lodged | 12 months from grant | 108, 109(1) |
| Failure to lodge → Board may recommend forfeiture | After 1 year | 109(2) |
| Cadastral survey plan lodged for registration | 6 months from Board approval | 109(5) |
| Surrender of developed parts; new leases granted | Per the staging determination | 110 |
Sources
- Land Act 1996 — ss 68, 69, 70, 103–110
- Survey Act and Survey Co-ordination Act — PacLII 1986 Revised Edition
- Land Registration Act (Chapter 191)
The Physical Planning Act 1989 — which establishes the Physical Planning Board and the Chief Physical Planner and is referred to throughout Division 10 — is not carried in the PacLII databases, so no direct link is given here rather than an unverified one.
Before relying on anything here, read the current text of the Land Act 1996 and check for later amendments. If a decision matters to you, get advice — start with the Office of the Public Solicitor, or find a firm in the law firms directory.