Farm Lease Agreement (Australia)
Date: [Agreement Date] | State / Territory: [Property State] | Country: Australia
This Farm Lease Agreement ("Lease") is entered into on the date shown above between the Landlord and the Tenant identified below, for the lease of agricultural land on the terms set out herein.
1. PARTIES
THE LANDLORD: [Landlord Name] (ABN: [Landlord ABN]), of [Landlord Address], [Landlord City], [Landlord State] [Landlord Postcode], Phone: [Landlord Phone], Email: [Landlord Email] (the "Landlord").
THE TENANT: [Tenant Name] (ABN: [Tenant ABN]), of [Tenant Address], [Tenant City], [Tenant State] [Tenant Postcode], Phone: [Tenant Phone], Email: [Tenant Email] (the "Tenant").
The Landlord and the Tenant are collectively referred to as the "Parties".
2. DESCRIPTION OF LEASED PROPERTY
2.1 The Landlord leases to the Tenant the agricultural property known as [Property Name] (the "Property"), being:
Address: [Property Address], [Property Suburb], [Property State] [Property Postcode]
Legal description: [Legal Description]
Total area: approximately [Farm Area] hectares
2.2 Description of improvements and facilities included in this Lease: [Farm Description]
2.3 The Landlord warrants that it has the right and authority to grant this Lease and that, to the best of the Landlord's knowledge, there are no encumbrances, caveats, or charges registered against the Property that would prevent the Tenant from quiet enjoyment of the Property during the lease term.
3. LEASE TERM
3.1 This Lease commences on [Lease Start Date] and expires on [Lease End Date] (the "Term"), unless sooner terminated in accordance with this Lease.
3.2 The Tenant is not entitled to hold over after the expiry of the Term without the Landlord's written consent. If the Tenant continues in occupation after the expiry of the Term with the Landlord's consent and without a new agreement, the tenancy shall be a monthly tenancy terminable by either party on not less than one month's written notice.
4. RENT AND PAYMENT
4.1 The Tenant shall pay to the Landlord an annual rent of AUD $[Annual Rent] per annum (exclusive of GST), payable [Rent Payment Frequency].
4.2 GST: If the Landlord is registered for GST, GST at 10% will be added to the rent, and the Landlord shall provide the Tenant with a valid tax invoice. If the supply of the Property constitutes the supply of a going concern or a supply of farmland for a farming business (under Divisions 38 and 40 of the A New Tax System (Goods and Services Tax) Act 1999 (Cth)), the Parties may agree that the supply is GST-free and record that agreement separately.
4.3 Rent review: [Rent Review Mechanism].
4.4 Security deposit: The Tenant shall pay a security deposit of AUD $[Security Deposit] on or before the commencement date. The security deposit will be held by the Landlord and returned to the Tenant at the end of the Lease, subject to deduction of any amounts owed by the Tenant for rent arrears, damage beyond fair wear and tear, or breach of this Lease.
4.5 Late payment: If rent is not paid within 14 days of the due date, the Landlord may charge interest on the outstanding amount at the rate of 10% per annum, calculated daily, and may take action to recover the debt.
5. PERMITTED USE AND AGRICULTURAL ACTIVITIES
5.1 Permitted use: [Permitted Use]
5.2 The Tenant must not use the Property for any purpose other than the permitted use without the Landlord's prior written consent.
5.3 The Tenant must comply with all applicable Commonwealth, state, and local government laws, including biosecurity laws (Biosecurity Act 2015 (Cth)), weed and pest management obligations, and environmental regulations applicable to farming activities on the Property.
5.4 The Tenant must conduct all farming activities on the Property in accordance with sound agricultural practice so as to maintain the long-term productivity and condition of the land and soil.
6. WATER RIGHTS AND FENCING
6.1 Water rights and access: [Water Rights]
6.2 The Tenant must not sink any bore, dam, or irrigation works on the Property without the prior written consent of the Landlord and any required government approvals under applicable state water legislation.
6.3 Fencing: [Fencing Responsibility]
6.4 Nothing in this clause limits either party's obligations under the applicable Dividing Fences Act or equivalent legislation in [Property State].
7. MAINTENANCE, REPAIRS, AND END-OF-TERM CONDITION
7.1 Tenant's obligations: [Maintenance Obligations]
7.2 The Landlord is responsible for major structural repairs to buildings and improvements on the Property, unless damage is caused by the Tenant's negligence or breach of this Lease.
7.3 The Tenant must, at the expiry or earlier termination of this Lease, return the Property to the Landlord in substantially the same condition as at the commencement of the Lease, subject to fair wear and tear, and must remove all personal property belonging to the Tenant.
7.4 A condition report shall be prepared at the commencement and at the end of the Lease to record the condition of the Property and its improvements. Disputes about the condition of the Property shall be resolved by reference to the condition report.
8. GOVERNING LAW AND DISPUTES
8.1 This Lease is governed by the laws of [Property State], Australia, including applicable agricultural tenancy legislation and the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010 (Cth)).
8.2 Any dispute arising from this Lease that cannot be resolved by the Parties through good-faith negotiation shall be referred to mediation before either Party commences court or tribunal proceedings. Either Party may apply to the appropriate state agricultural tenancy tribunal or civil and administrative tribunal if mediation fails.
8.3 Either Party must give the other Party written notice of any alleged breach of this Lease and allow a reasonable period of not less than 14 days to remedy the breach before taking legal action.
EXECUTED as an agreement:
THE LANDLORD
Name: [Landlord Name]
Signature: _______________________________
Date: [Agreement Date]
THE TENANT
Name: [Tenant Name]
Signature: _______________________________
Date: [Agreement Date]
Landlord
________________
Signature
Date: ________________
Tenant
________________
Signature
Date: ________________
What Is a Farm Lease Agreement (Australia)?
A Farm Lease Agreement in Australia grants the right to occupy and use the land for the agreed purpose and records the rent, term, and the obligations of the landowner and the lessee under the Real Property Act 1900 (NSW).
A farm lease records all the material terms of the tenancy, including the description of the land and improvements, the permitted agricultural use, the lease term and rent, the rent review mechanism, the allocation of water rights and fencing obligations, the parties' biosecurity and weed management responsibilities, the tenant's maintenance obligations, and the condition in which the property must be returned at the end of the lease.
A farm lease is different from an ordinary commercial property lease because it must deal with agricultural-specific issues that do not arise in urban property leases — including cropping rights, water entitlements, livestock management, biosecurity, and the right to harvest crops after lease expiry.
The key Australian legal frameworks governing farm leases are: state agricultural tenancy legislation (including the Agricultural Tenancies Act 1990 (NSW) and the Farm Tenancies Act 1994 (SA)); the National Water Initiative and state water legislation governing water entitlements; state biosecurity legislation; state dividing fences legislation; and the general common law of contract and property.
The legal framework governing the Farm Lease Agreement (Australia) in Australia draws on several key statutes and regulatory bodies. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Section 52 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010) prohibits misleading conduct in property transactions. The Foreign Acquisitions and Takeovers Act 1975 (Cth) requires FIRB approval for foreign purchasers. Parties executing a Farm Lease Agreement (Australia) in Australia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Real Property Act 1900 (NSW) sets the foundational requirements.
When Do You Need a Farm Lease Agreement (Australia)?
A Farm Lease Agreement is needed whenever agricultural land is leased for farming purposes. This includes leases of broad-acre cropping properties, cattle or sheep grazing stations, dairy farms, horticulture properties, and mixed farming enterprises.
For landlords, a written farm lease protects the long-term condition and productivity of the land by setting clear obligations on the tenant for maintenance, weed and pest management, soil health, and the condition of improvements. Without a written lease, a landlord may have difficulty enforcing obligations or recovering the cost of damage caused by the tenant's activities.
For tenants, a written lease provides security of tenure for the agreed period and clearly establishes their rights to carry out farming activities, including cropping and use of water. Without a written lease, a tenant farming on an informal arrangement may be at risk of being required to vacate on short notice, losing the benefit of crops sown, or being held liable for activities they reasonably believed they were permitted to undertake.
A Farm Lease Agreement is particularly important where the property has irrigation infrastructure or water entitlements (which need to be clearly allocated), where the tenant plans to make improvements to the property, where the lease involves cropping (and the right to harvest after expiry needs to be addressed), or where the lease term is two years or more.
Parties in Australia should prepare a Farm Lease Agreement (Australia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Section 52 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010) prohibits misleading conduct in property transactions. The Foreign Acquisitions and Takeovers Act 1975 (Cth) requires FIRB approval for foreign purchasers. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Farm Lease Agreement (Australia)
A well-drafted Australian Farm Lease Agreement should include the following key elements.
Party details should identify the landlord and tenant fully, including their names, ABNs, addresses, and contact details. If either party is a company or trust, all relevant details should be recorded.
Property description should include the property name, address, total area in hectares, legal description (lot and deposited plan number), and a description of all improvements included in the lease (homestead, sheds, silos, yards, fences, water infrastructure).
Lease term should specify the commencement and expiry dates, and any option to renew.
Rent and payment terms should state the annual rent in AUD (exclusive of GST), the frequency of payment, the rent review mechanism (CPI, market review, or fixed percentage), and the amount of any security deposit. GST treatment should be addressed.
Permitted use should specify the farming activities the tenant is authorised to carry out, including grazing, cropping, irrigation, and any restrictions.
Cropping rights (if applicable) should specify which paddocks may be cropped, the types of crops permitted, any conditions on cropping, and the tenant's right to harvest crops sown before the lease expiry.
Water rights should specify the water access the tenant is entitled to, including bore water, dam water, surface water, and any irrigation licences.
Fencing responsibilities should allocate responsibility for boundary and internal fences.
Biosecurity obligations should address weed and pest management in accordance with applicable legislation.
Maintenance and repair obligations should specify what the tenant must do to keep the property in good farming condition and the condition in which it must be returned at lease end.
Additional compliance elements for a Farm Lease Agreement (Australia) used in Australia include: Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Section 52 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010) prohibits misleading conduct in property transactions. The Foreign Acquisitions and Takeovers Act 1975 (Cth) requires FIRB approval for foreign purchasers. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
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author = {{Forms Legal}},
title = {Farm Lease Agreement (Australia) (Australia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/australia/real-estate/leases/farm-lease-agreement-australia}},
note = {Free legal document template. Based on Real Property Act 1900 (NSW)}
}Also available for these jurisdictions:
Frequently Asked Questions
Agricultural tenancy law in Australia is primarily state-based. In New South Wales, the Agricultural Tenancies Act 1990 (NSW) provides specific protections for agricultural tenants and requires minimum notice periods for termination. In South Australia, the Farm Tenancies Act 1994 (SA) applies. In Queensland, the Property Law Act 1974 (QLD) and general common law principles govern farm leases. In Victoria, farm leases are mainly governed by the common law and the express terms of the lease, as the Residential Tenancies Act does not apply to agricultural properties. Western Australia's Property Law Act 1969 (WA) and Tasmania's Landlord and Tenant Act 1935 (TAS) are also relevant. Regardless of state, all Australian farm leases are subject to the general common law of contract and, where the landlord or tenant is a business, the Australian Consumer Law prohibitions on misleading and deceptive conduct. Parties should seek legal advice from a rural property solicitor in the relevant state before entering into a farm lease.
Water rights in Australia have been separated from land title under the National Water Initiative agreed by Australian governments in 2004. This means that owning or leasing farmland does not automatically give the tenant the right to use any water resources on or adjacent to the property. Water access entitlements (such as water licences, water allocations, and water shares) are typically held separately and may or may not be included in the farm lease. A farm lease should expressly specify what water access the tenant is entitled to — including bore water, dam water, surface water extraction, and any licensed irrigation entitlements — and what quantities apply. Tenants who intend to irrigate crops should verify the availability and quantity of water entitlements before signing and requires the lease clearly grants access. Water trading (buying or selling water access entitlements) is permitted in most states and may offer additional water access options for tenants with significant irrigation needs.
In general, the lease of commercial property (including agricultural land) by a GST-registered landlord is a taxable supply under the A New Tax System (Goods and Services Tax) Act 1999 (Cth), and GST at 10% applies to the rent. The landlord must issue a valid tax invoice to the tenant. However, two important exemptions may apply to farm leases. First, if the lease of the farmland is a 'supply of a going concern' (both parties are GST-registered and the lease includes everything necessary for a farming enterprise to continue), the supply may be GST-free if both parties make a written election. Second, if the farmland is leased for use in carrying on a farming business, the lease may qualify as a GST-free supply of 'farmland' under Division 38 of the GST Act, provided the land has been used for farming in the five years before the lease and both parties make a written election. Parties should seek advice from a tax accountant or solicitor with GST experience to determine which treatment applies to their specific arrangement.
Biosecurity obligations in Australia are imposed by the Biosecurity Act 2015 (Cth) and state biosecurity legislation (such as the Biosecurity Act 2015 (NSW) and the Biosecurity Act 2014 (QLD)) on the person in control of land, which during the lease term is primarily the tenant. The tenant is generally responsible for managing declared weeds and pests on the property in accordance with applicable biosecurity laws. However, if the property had pre-existing weed or pest problems that were not disclosed by the landlord at the commencement of the lease, this may give rise to a claim by the tenant. The farm lease should clearly allocate biosecurity responsibilities — including which party is responsible for baiting, mustering, spraying, and fencing to control pests and weeds — and should require the tenant to provide the landlord with a record of biosecurity activities carried out during the lease.
Yes, under the common law doctrine of emblements (which has been modified or codified in some Australian states), a tenant who sows a crop during the lease term generally has the right to re-enter the land and harvest the crop after the lease expires, provided the crop was sown with the reasonable expectation that it would be harvested before the lease expired. However, this right is not absolute and can be affected by the express terms of the lease. A well-drafted farm lease should expressly address the tenant's right to harvest crops sown before the expiry of the lease, the period for which the tenant may remain on the property to complete the harvest, and any conditions (such as paying a use-and-occupation fee) that apply during the harvest period. Failure to address this issue in the lease is a common source of disputes between landlords and outgoing tenants.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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