FMDs & Stamp Duty Exemptions Estate & Succession Planning

It is pleasing to see that both the Federal and Queensland Governments have introduced measures to assist rural clients with tax and stamp duty, to be effective from 1 July 2016.

Strengthening of the Farm Management Deposits Scheme

As you are no doubt aware, increasing the limits on FMDs by doubling them from $400,000 to $800,000 and the use of same as offsets against other farm business loans will be a valuable tax planning and estate planning tool for rural clients.

Strengthening the Stamp Duty Exemptions for inter-family business property transactions for Rural Families

The Queensland government has amended the Duties Act to exempt certain inter-family transaction from Stamp Duty even when monetary consideration passes or when liabilities are assumed.  Prior to 1 July, the exemption was only available for that part of the transaction that was a gift by the transferor to the transferee. So with the changes, provided all of the conditions of the legislation are satisfied, there will be stamp duty exemption on transfers of rural properties and rural businesses (stock and plant) even when the relative acquiring the property is paying for it or taking over the debt of the disposer (transferor).  The exemption is not restricted to transactions between parents and children. The definition of ‘defined relative’ is very wide and will give stamp duty relief to a much wider group of family members e.g. transactions between siblings; uncle/aunt – nephew/nieces etc.

Advice will need to be obtained to assess stamp duty exemption for each proposed family transaction to make sure the exemption applies before embarking on a deal and signing documents.

Both of the above legislative changes are of significant benefit to rural clients with their tax and succession planning.

Please contact Gerard Houlihan or Lauren Farrelly of Rees R & Sydney Jones Solicitors on (07) 4927 6333 or at enquire@reesjones.com.au for any further information.

Queensland Government Restores Landowner & Community Rights on Mining!

On Tuesday 24 May 2016, the Queensland Government restored balance between the rights of farmers, miners, and the community by passing legislation that protects farm infrastructure and restores community objection rights.

The Mineral and Other Legislation Amendment Bill restores the rights of landowners and community members to object to proposed mining projects and protect key agricultural infrastructure.

Landowners 

This Bill provides Landowners with

"a minimum 50 metre protection zone around key agricultural infrastructure such as principal stockyards, bores and artesian wells, dams and artificial water storages connected to a water supply; 

the right to prevent any mining lease being granted over restricted land without the consent of the owner; and, the security of knowing ministers cannot extinguish restricted status for their land – a power a minister would have had under the LNP’s proposed laws."1

Community Members

This Bill provides Community Members at large with the opportunity

"to have their say on mining lease and environmental authority applications for mining projects to be advised of any proposed mining projects through ads in newspapers."2

The above changes are set to come into affect from 27 September 2016.

View the Queensland Government Statement regarding the passing of this Bill.

If you have any queries or would like to discuss this Bill further, please do not hesitate to contact Rees R & Sydney Jones Energy, Environment & Agribusiness Partner, Melanie Findlay on (07) 4927 6333.

[1] Queensland Government, 'Govt restores farmer & community rights on mining' (24 May 2016) <http://statements.qld.gov.au/Statement/2016/5/24/govt-restores-farmer--community-rights-on-mining>.
[2] Ibid.

Land-use change and sustainability scenario, Australia 2013 - 2050

Our Landowner Lawyer found this animated YouTube clip on the CSIRO site. 

It depicts "the economic potential for land-use change and the impact on economic and environmental sustainability." and has been supplied by Brett Bryan. 

Brett Bryan is the author of a previous article shared by The Landowner Lawyer on 1 April 2016 "Farming in 2050: storing carbon could help meet Australia's climate goals".

Of particular interest is the huge predicted growth of carbon plantings (pale blue on the map). As the years progress, the area of carbon plantings increase along with the economic returns. Crop and livestock demand increases as does the carbon price, while oil and electricity prices level out.

Our Energy, Environment & Agribusiness team would be happy to talk to you about how you can use Carbon Planting as an alternative on-farm income source.

Gasfields Commission Review - Have your say

Bob Scott has been appointed as an Independent Reviewer of the role of the GasFields Commission.

People may remember Bob Scott as a serving member of the Land Court for some 14 years. Public submissions, as well as submissions from industry groups will be considered and recommendations made to the Minister for State Development.

You can have your say one whether you feel the current model works or make submissions as to whether a different form of Ombudsman might be more appropriate.

A link to the review process can be found here.

http://www.statedevelopment.qld.gov.au/industry-development/gasfields-commission-review.html

Our Mining and Gas Lawyers will be happy to assist Landowners who wish to make submissions or require assistance with Coal Seam Gas Agreements.

Solar Projects: The Prospecting Race & ARENA Funding

UPDATE: The Solar Race

The “solar prospecting race” is continuing to heat up with in Central Queensland. Farmers and landowners are being approached by solar and renewable energy companies interested in building large-scale solar farms on their land.

Solar Projects – On-farm Income

Solar projects and farms are an opportunity for farmers and landowners to earn a different form of “on-farm” income. In addition to directly benefiting the farmers and landowners, solar projects and farms can have a wider impact on rural communities in Queensland. These projects offer a relatively reliable energy source and create job opportunities during the construction of the solar farm.

Australian Renewable Energy Agency

The Australian Renewable Energy Agency (ARENA) has recently announced that 10 large-scale solar projects in Queensland have been selected to proceed from the proposal stage to the full application stage. The projects selected are able to bid to secure Federal Government funding. A full list of these solar projects can be found on the ARENA website.

The Federal Environment Minister, Greg Hunt has said “the shortlisted proposals were chosen from a very strong field, demonstrating Australia is ready to invest in utility-scale renewable energy options suited to the 21st century”.

If Federal Government funding is received by solar and renewable energy companies, we are set to see large-scale solar projects located in Dalby, Proserpine, Oakey, Hughenden, Longreach, Baralaba and Ipswich.

If you have been approached by a solar or renewable energy company or have questions about the potential opportunities, including the use of your property for clean energy or renewable projects, our Rural, Mining and Gas Agribusiness Team can help.

Please contact either Melanie Findlay or Emma Kime of Rees R & Sydney Jones for further information. 

You may also be interested in reading other articles written by Melanie Findlay such as Solar Farm Opportunities for Landowners.

Strategic Offset Investment Corridors - Southern Brigalow Belt and New England Tableland

Landowners in the Southern Brigalow Belt Strategic Offset Investment Corridors will be interested in the release of the Southern Brigalow Belt and New England Tableland Strategic Offset Investment Corridors Methodology Report.

Strategic Offset Investment Corridors (SOICs) identify some of the best places in the landscape for environmental offsets. SOICs make offsets easier and cheaper to find, provide income opportunities for landholders willing to provide offsets on their land, and provide strategic conservation benefits for important environmental values.

Melanie Oliver explains the benefits to Landowners of a voluntary offset agreement here.

Landowner rights restored by the State, but now the Federal Government may have go!

Late last year the State Government passed the MERCP Bill which took away the rights of various community groups, landowners and persons concerned. To put it simply the bill made it hard or impossible for anyone other than a directly affected landowner to object to an Application for a Mining Lease or an Environmental Authority. The bill was passed but never came into effect.  Last month a Bill revoked s47D of the State Development and Public Works Organisation Act 1971 which restored objection rights to coordinated projects.

 The Federal Government now is making noises that they want to remove the legal right for persons other than those directly affected to object to approvals.  This would cause the same problems and reaction that the removal of the rights at a state level caused.  A landowner should be able to object to a coal mine if they are not directly affected by the Mining Lease but their Water Source is going to be impaired. A landowner should be able to object to a project if the dust impacts outside of the mining lease are going to cause health issues.

 Hopefully the Federal Government reviews the consultations that took place when the Queensland government considers this issue. Landowners would be well advised to speak to their members and federal representatives about their concerns on this issue.

Melanie Oliver the Rural, Mining & Gas Partner at local law firm Rees R & Sydney Jones.  If you have any questions, please contact Melanie on 4927 6333.

Changes to Restricted Land Laws may diminsh Landowner Rights

 On 5 June 2014 the Mineral and Energy Resources (Common Provisions) Bill 2014 was presented to Parliament.  If the Bill becomes law then there will be a variety of amendments to the current laws, which will diminish the rights of Landowners when they are negotiating or dealing with a mining company.

What are the current rights of Landholders in regard to Restricted Land?

At the moment, a Mining Lease can be granted over Land that is "Restricted Land" only if the owner of the land gives consent to the application for the Mining Lease. "Restricted Land" means land that is within 100m of permanent buildings used for accommodation or business, community or recreational buildings. It also means land within 50m of a bore, dam, some water storage facilities, cemeteries or burial places or a principal stockyard.

 Currently, what happens if the Landowner won't give consent?

If a Landowner won't give consent, then the application cannot be granted over the "Restricted Land" areas. A Landowner with a property that had Restricted Land was therefore put in better bargaining position with a Mining Company.

 Are there changes in how Restricted Land is treated if the Bill becomes law?

Yes. The Bill proposes changes in the types of infrastructure used to identify Restricted Land. Only land within a "prescribed distance" of certain types of buildings or infrastructure will be considered as Restricted Land.  At this stage, we do not know whether that "prescribed distance" is going to be the same as under the current law, because the "prescribed distance" is yet to be written into the regulations. The regulations have not been issued yet.

If the Bill becomes new law and I have say a bore, will things change for me if a Mining Lease is applied for?

Yes. The types of infrastructure or buildings that are now considered to be "Restricted Land" are changing.  In the new Bill, Restricted Land will mean land within the prescribed distance of a residence, a place of worship, a childcare centre, hospital or library. It will also include a school, a cemetery or burial place. An area within a prescribed distance of intensive animal feedlotting, pig keeping, poultry farming and aquaculture will become a restricted area. In other words, pretty much only buildings are now protected, and definitely not watering facilities.

 So, under the current system if a Mining Lease was to be applied for over an area where you had a dam or bore, you could withhold your consent and the mining lease would not have been granted over that area. If the bill becomes law, you will not be able to prevent the grant of a mining lease over the area around your dam or bore by withholding consent.

 For further information in relation to these issues, contact Justin Houlihan or Melanie Oliver at Rees R & Sydney Jones on 4927 6333.

Watch out you do not Opt Out?

 The new Mining and Energy Resources (Common Provisions) Bill 2014 was passed by the LNP Government and comes into force over the next month or so.  Whilst there has been much debate over the issue of removing rights to object to Mining Leases for landowners, some other nasty provisions have been added to the mix which landholders need to be wary of.  Rural Lawyer Melanie Oliver explains the new “Opt Out Agreements” that have just been added into the already confusing world of resource company documents.

An owner or an occupier of Land can now Opt Out of a Conduct and Compensation Agreement with a resource company. Once an Opt Out Agreement is signed, the resource company can enter the land and start its activities.  In our view it would be very rare for it ever to be appropriate for a Landholder to sign an Opt Out Agreement and we would urge Landholders to be very cautious and get full advice before signing anything they are presented.

If you would like further information or have any questions please give Melanie Oliver, Amy Gudmann or Justin Houlihan a call at Rees R & Sydney Jones on (07) 4927 6333.  

ACCESS LAND – WATCH YOUR SPOKEN WORDS WHEN DEALING WITH RESOURCE COMPANIES!

It is a longstanding general rule in property law which says that if you are going to give away a right or interest in your Land, then this should be in writing. Unfortunately though, as new laws have been created to deal with Land Access for coal seam gas (CSG) and mining companies, this general and longstanding rule has been whittled away.

What is an Access Agreement?

Sometimes gas companies need access across blocks of land to get to the blocks of land under which the coal seam gas (CSG) might be found. The gas companies are required under the Petroleum and Gas legislation to enter into "Access Agreements" with landowners and occupiers of land. The right to come across the land is called an "Access Right" and it can include the right to construct roads or tracks across your Land to allow them to get to the area that they want to explore.

How can I give away access rights without an agreement in writing?

The Petroleum and Gas (Production and Safety) Act is currently drafted in such a way that Access Agreements or Access Rights can be given away orally.

How are Access Agreements different to Conduct and Compensation Agreements?

These Access Agreements are very different. There isn't even a need to compensate the Landowners or occupiers under an Access Agreements. Conduct and Compensation Agreements have to be in writing. If an oral agreement is made in regard to an Access Arrangement for say a road across the land, then this could be enough to allow a company to access and build the road on your Land. There is no requirement for compensation to be paid, but it can be negotiated.

If a Seller of Land enters into an oral agreement, and I buy the place, am I bound by this?

Yes. The law states that these agreements are binding on future owners of the Land. The fact that someone's word could bind up a property well into the future is obviously a very large problem and the law should be changed.

Surely the new laws about mining and gas will fix this won't they?

No. The laws in regard to Access Land are changing; however when the Mining and Energy Resources (Common Provisions) Bill 2014 was presented to Parliament on 5 June 2014, the problem with oral Access Agreements had not been addressed. It seems silly that a company might be allowed to build a large road on someone’s land without giving someone compensation, and without entering into a written agreement.

Every situation is different and because some things you even say now could be binding on you, you really should seek legal advice as soon as you are approached by a mining or gas company for access to your Land. It is also very important to look at whether or not your land is inside or outside the exploration area or tenement of a company to know what type of agreement you should be negotiating.

If you would like further information or have any questions please give Melanie Oliver, Amy Gudmann or Justin Houlihan a call on (07) 4927 6333. 

UPDATE ON THE GALILEE RAIL

In November late last year the State Government announced their Galilee Basin Development Strategy.

After months of consultation the size of the GBSDA has been reduced by 94 percent and new mapping has been released by the government.  Currently the GBSDA is around 500 metres wide and it will apparently be further reduced.  This is a good result for Landowners, but still further refinement of the area would provide more certainty for persons currently in “limbo”.

There have been statements made in the media that the declaration of the area will not affect Landowner’s rights. This is quite a naive statement. There is a large amount of difference between a landowner that has been negotiating with a private company who has limited rights to resume land, and the Co-ordinator General who can resume the Land and pay an amount of compensation specified by the law. There will be less commercial deals made and landowner’s rights to compensation and negotiation will be affected. Information on the mapping can be located here www.dsdip.qld.gov.au/gbsda.

If you are approached by a resource or rail company you should seek legal advice early in regard to the negotiations. There are differences in the process when you are negotiating with the government for a resumption compared to when you are negotiating with a private company for a sale or an easement.  If you are approached, we have a specialised mining and resumption team who can give you advice.  Please contact Melanie Oliver, Andrew Palmer, Amy Gudmann or Justin Houlihan at Rees R & Sydney Jones Solicitors on 4927 6333.

Update on Galilee Basin State Development Area (GBSDA)

In November 2013, the Queensland Government released a paper entitled "Galilee Basin Development Strategy". In the document, great emphasis was placed upon the desire of the government to open up the Galilee Basin. One of the initiatives identified by the Government in achieving this aim was the streamlining of the land acquisition, planning and approvals process.

The Government has now released the fact sheet and a map of the proposed GBSDA and is undertaking consultation with various stakeholders. Included in the consultation will be landowners and the community affected by the proposed GBSDA.  The consultation will take place between January and March and the Government will consider feedback provided by stakeholders on the extent of the proposed GBSDA as well as a draft development scheme proposed for the GBSDA. The proposed GBSDA and the draft development scheme are available on the Department of State Development, Infrastructure and Planning website at www.dsdip.qld.gov.au/coordinatorgeneral/.  It is also proposed that officers of the Coordinator-General will visit Clermont, Moranbah, Collinsville and Glenden during March 2014 to have face-to-face meetings with some stakeholders.

If your property is within the area of the proposed GBSDA, then it is important that you are aware of the impacts that the declaration of the State Development Area and the likely impacts of the rail corridors may have on your property to enable you to make a meaningful submission to the Coordinator-General, so that all of the relevant impacts are properly considered.

If you need assistance or further information in relation to this, contact Andrew Palmer or Justin Houlihan at Rees R & Sydney Jones on 4927 6333.