What it does
The Special Purposes Leases Act 1953 establishes a statutory regime for the granting, management, variation, forfeiture, surrender and resumption of leases of unleased Crown or Territory land in the Northern Territory where the intended use is a "special purpose". Section 3 defines "special purpose" negatively: any purpose other than a private residential purpose within a town or a site for a town (within the meaning of the Crown Lands Act 1992), a pastoral, agricultural or mining purpose. "Agricultural" expressly excludes horticultural uses. The Act therefore fills a distinct niche between residential, primary production and extractive tenure regimes.
At its core, s 4(1) empowers the Minister, notwithstanding any other law, to grant leases in the name of the Territory of any unleased Crown or Territory land—including sea bed within territorial limits and reserved land—to natural persons over 18, foreign governments for diplomatic or consular purposes, associations incorporated under the Associations Act 2003 whose objects match the purpose, companies whose objects encompass the purpose, or statutory corporations. Grants are conditional on payment of all amounts due for the right to the lease plus survey costs (s 4(2)) and must not contravene Planning Act 1999 development provisions (s 4(3)).
The Act provides three primary allocation pathways. First, the Minister may invite applications by Gazette notice specifying location, permitted purposes, term, rent (or reserve price in towns), improvements and their value, and unimproved capital value or reserve price (s 5A(1)). Applicants bid by estimated unimproved capital value (outside towns) or by premium offered (inside towns). The highest compliant bidder obtains the right upon payment (s 5A(7)). Ties are resolved by ballot (s 5A(5)). Second, the Minister may auction the right to a lease (s 5AB). Bidding is by capital sum representing unimproved capital value (outside towns) or value of the right (inside towns), with reserve values or prices set by the Valuer-General or Minister. Successful bidders must pay the excess over reserve plus first year's rent and survey fee immediately. Failure to execute the lease within three months after notice can lead to determination of the right without compensation (s 5AB(8)–(12)). Third, direct grants without competitive process are permitted where the land was surrendered from a pastoral or agricultural lease for this purpose, is reserved land, or where the Minister is satisfied circumstances justify bypassing competition (s 5B(1)). Direct grants in towns require a pre-determined reserve price (s 5BA) and may attract a premium not exceeding the difference between current market value and reserve (s 5BB).