Agistment — paying to run livestock on someone else's land — is a fundamental arrangement in Australian rural industries. A Grazing Licence formalises this without creating a pastoral lease or any interest in land. It sets out the land to be used, the type and number of stock permitted, fencing and water responsibilities, the agistment fee, and what happens if seasonal conditions deteriorate or the agreement must end early. Built for Australian conditions: NLIS compliance, state water law references, and biosecurity obligations are all addressed. Download as PDF or Word, no account needed.
What Is a Grazing Licence?
A Grazing Licence is a legal agreement under which a landowner (the licensor) grants a grazier (the licensee) the right to run livestock on specified rural land for a fixed period in exchange for an agistment fee. Unlike a pastoral lease or a rural tenancy, a grazing licence does not create any interest in land. It is a personal contractual right that gives the grazier access to the land for the purpose of grazing livestock only, subject to the conditions set out in the licence.
In Australia, grazing licences are widely used across all states and territories for cattle, sheep, horses, and other livestock. They are particularly common in NSW, QLD, VIC, WA, and SA where large-scale pastoral and mixed farming operations regularly need to agist stock during drought or manage seasonal carrying capacity. The arrangement is distinct from a pastoral lease — which is a form of Crown land tenure granted by a state or territory government — and from a rural tenancy, which may attract residential or commercial tenancy legislation.
Because a grazing licence does not create a tenancy, the landowner retains full rights to enter and use the land, including the right to conduct farm operations and maintain fences, water points, and infrastructure. The licence is governed entirely by its terms and by general contract law, making a well-drafted written agreement essential to avoid disputes over stocking rates, fencing obligations, water access, NLIS compliance, and the circumstances under which either party may terminate.
When Do You Need a Grazing Licence?
A Grazing Licence is needed whenever a landowner agrees to allow a third party to run livestock on their land in exchange for an agistment fee. This is among the most common rural transactions in Australia and arises in several standard situations: a grazier needs additional carrying capacity during a dry period on their own property; a landowner has vacant paddocks after destocking and wants to generate income while holding the land; or a livestock producer wants to run out young stock on improved pastures.
The licence is also important for landowners who wish to prevent an agistment arrangement from being characterised as a lease, which could give the grazier rights under rural tenancy legislation. Without a written agreement expressly stating that no tenancy is created, a long-term agistment arrangement in some states may attract statutory protections that were not intended by either party.
From the grazier's perspective, a written licence provides certainty about the maximum stocking rate, fencing and water arrangements, what happens if seasonal conditions deteriorate, and how much notice is required to remove stock. Without a written licence, a grazier may be required to remove stock at very short notice with no recourse.
A grazing licence also addresses critical compliance obligations: under the National Livestock Identification System (NLIS), cattle, sheep, and goats must be tagged and movements recorded on the national database. Under state biosecurity legislation, graziers have obligations to report notifiable diseases and manage weeds and pest animals on the land they occupy. The licence should clearly allocate these responsibilities.
What to Include in Your Grazing Licence
A properly drafted Australian Grazing Licence must address several critical elements to be effective and enforceable. The licensed land must be precisely described — ideally by lot and deposited plan number, local government area, and approximate area in hectares. If only part of a property is being licenced for grazing, the excluded areas should be clearly identified.
The type of livestock permitted must be specified precisely. A licence that allows 'cattle' does not authorise the grazier to introduce sheep, horses, or goats. The maximum stocking rate — expressed in adult equivalent units per hectare or as a total number of head — must be stated and enforced. Overgrazing can cause significant and lasting damage to pastures, and the landowner needs a contractual basis to require stock reduction if conditions deteriorate.
Fencing obligations under the Dividing Fences Act in each state govern boundary fences, but internal fencing is a matter for the licence. The licence should clearly state whether the landowner maintains external fences and the grazier maintains internal paddock fences, or whether the cost is shared. Any obligation on the grazier to improve fencing should specify the standard required.
Water access provisions must distinguish between access to existing infrastructure (dams, tanks, troughs) and any rights to extract water under state water legislation. The grazier's right is limited to using existing infrastructure unless a separate water licence or consent is obtained.
NLIS compliance obligations, biosecurity requirements, and insurance — in particular public liability cover for livestock on the land and on public roads during movement — must be allocated clearly. The agistment fee structure, payment frequency, and what happens to the fee if stock numbers are reduced due to seasonal conditions or early termination complete the key financial provisions.
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