Effect of Amalgamation on Crown Land under Management Orders


Another question to consider for Local Governments facing the Commencement of an amalgamation is what effect this might have upon Crown land that has been leased by a Local Government pursuant to Management Orders.

The term Commencement in this article means the day of commencement of any amalgamation order made by the Governor on the recommendation of the Minister pursuant to section 2.1 of the Local Government Act 1995 (WA) (the Act).

The power of a Local Government to lease Crown Land is typically given via Management Orders made pursuant to the Land Administration Act 1997 (WA) (the LAA). In the case of Reserves set aside for public purposes section 46 of the LAA enables the Minister for Lands, by order, to delegate the power to lease. This is referred to as a Management Order and the Local Government receiving the power is referred to as a Management Body.

The position of a Local Government in relation to Management Order land to which it has an interest in is going to depend on the type of amalgamation that has been ordered under section 2.1 of the Act.

Where a Local Government takes over the whole of the area of abolished District

Pursuant to Regulation 6 (4) (a) of the Local Government (Constitution) Regulations 1998 (WA) (the Constitution Regulations) the rights and liabilities under a Management Order lease will automatically vest in the new Local Government.

This will be the case where an existing Local Government remains in existence but takes over the whole of the area of an abolished Local Government by boundary change. Alternatively it will also be the case where a new district is created that takes over the whole of the area of an abolished District.

Consequently, the new Local Government will automatically inherit the rights and obligations of the abolished Local Government (as Landlord or Licensor) of any lease or licence that may have been granted by the abolished Local Government. There should be no need to prepare assignments of leases from one Local Government to another.

However, it will be necessary for the Minister for Lands to amend the Management Order to reflect the new Local Government entity if indeed a new one has been created.

Where a Local Government takes over part only of the area of abolished District

Provided the land in question was situated within the area taken over then the position is likely to be the same as set out above. However that position is not expressly set out in the Constitution Regulations.

A Local Government that believes it may find itself in this position may need to seek and order from the Governor (through the Minister) under clause 11 of Schedule 2.1 to the Act. This clause allows the Governor to make further regulations to give effect to property transfers where they may not be covered by the Constitution Regulations.

Where a Local Government takes over area from a Local Government that is not abolished.

What happens where a Local Government, let’s call them (A) is not abolished but say loses part of its area to another local government, let’s call them (B) and local government (A) has the power to lease delegated to it pursuant to Management Orders over land  within the area that it has lost to (B). Fundamentally (A) will still retain the rights under the Management Orders and consequently the rights as Landlord or Licensor under any lease or licence granted with respect to that land.

However, there is an obligation under clause 11 (2) of Schedule 2.1 to the Act on all Local Governments affected by an amalgamation to negotiate as to any adjustment or transfer of property rights. If the Local Governments do not agree on what should happen and they cannot resolve the matter by negotiation then the Minister has power to resolve those disputes under section 9.63 of the Act.

Consequently the Governor has power under clause 11 (3) of Schedule 2.1 to the Act to give effect to the Minister’s decision.

If you have any questions about the Effect of Amalgamation on Crown Land under Management Orders or the process to be followed, please contact Brenton Oakley on (08) 9321 3755.

The information published on this website is of a general nature and should not be construed as legal advice. Whilst we aim to provide timely, relevant and accurate information, the law may change and circumstances may differ. You should not therefore act in reliance on it without first obtaining specific legal advice.