Commonwealth of Australia Explanatory Memoranda

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INDIGENOUS AFFAIRS LEGISLATION AMENDMENT BILL 2008

                          2008




THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




             HOUSE OF REPRESENTATIVES




INDIGENOUS AFFAIRS LEGISLATION AMENDMENT BILL 2008




             EXPLANATORY MEMORANDUM




              (Circulated by the authority of the
  Minister for Families, Housing, Community Services and
      Indigenous Affairs, the Hon Jenny Macklin MP)


INDIGENOUS AFFAIRS LEGISLATION AMENDMENT BILL 2008 OUTLINE This bill makes amendments to the emergency measures to protect Aboriginal children in the Northern Territory, through amendments to the Northern Territory National Emergency Response Act 2007. It also amends the Aboriginal Land Rights (Northern Territory) Act 1976 to give greater flexibility in relation to the grant of township leases and to expand the functions of the Executive Director of Township Leasing. In addition, it makes provision for the further grant of Aboriginal land in the Northern Territory. Schedule 1 - Land rights The bill makes amendments to the Aboriginal Land Rights (Northern Territory) Act 1976. Provision will be made for township leases under section 19A to be for a period of between 40 and 99 years. The Executive Director of Township Leasing will be given new functions in relation to leases to the Commonwealth under section 19 of the Act, and leases and subleases to the Commonwealth of certain other Indigenous land. Other minor amendments include clarification of certain powers of the Minister, conferral of certain new functions on Land Councils, and provision for the Executive Director of Township Leasing to be appointed on a part-time basis. Schedule 2 - Acquisition of rights, titles and interests in land Minor improvements are made to several provisions in Part 4 of the Northern Territory National Emergency Response Act 2007. Amendments are also made to allow the Commonwealth and certain persons to agree on amounts to be paid in respect of the five-year leases and certain other payments, and other minor and technical amendments are made. Schedule 3 - Park lands The bill amends the Aboriginal Land Rights (Northern Territory) Act 1976 to allow for the grant of 13 further areas of Aboriginal land, which will be operated as national parks. Financial impact statement The financial impact of this bill is negligible.


INDIGENOUS AFFAIRS LEGISLATION AMENDMENT BILL 2008 NOTES ON CLAUSES Clause 1 sets out how the Act is to be cited, that is, the Indigenous Affairs Legislation Amendment Act 2008. Clause 2 provides a table that sets out the commencement dates of the various sections in, and Schedules to, the Act. Clause 3 provides that each Act that is specified in a Schedule is amended or repealed as set out in that Schedule, and that any other item in a Schedule has effect as it is set out in the Act. This explanatory memorandum uses the following abbreviations: · `Land Rights Act' means the Aboriginal Land Rights (Northern Territory) Act 1976; and · `NT NER Act' means the Northern Territory National Emergency Response Act 2007. 1


Schedule 1 - Land rights Summary This Schedule makes amendments to the Land Rights Act. Provision will be made for township leases under section 19A to be for a period of between 40 and 99 years. The Executive Director of Township Leasing will be given new functions in relation to leases to the Commonwealth under section 19 of the Land Rights Act, and leases and subleases to the Commonwealth of certain other Indigenous land. Other minor amendments include clarification of certain powers of the Minister, conferral of certain new functions on Land Councils, and provision for the Executive Director of Township Leasing to be appointed on a part-time basis. Background The amendments made to the Land Rights Act include amendments to: · allow for township leases to be for a period of between 40 and 99 years; · allow for township leases to provide for rights of renewal; and · expand the functions of the Executive Director of Township Leasing so that he or she may enter and administer leases granted under section 19 of the Land Rights Act; and enter and administer leases and subleases of certain other Indigenous land in the Northern Territory. These measures allow Land Trusts considering a township lease to propose a lease tailored to the needs of a particular community. The measures will also add to the range of options that Aboriginal owners of land granted under the Land Rights Act, of community living areas, or of town camps, have in considering leasing or subleasing. Where leases or subleases are held by the Executive Director of Township Leasing, they are administered by an independent statutory office-holder, rather than directly by the Commonwealth. The amendments made by this Schedule commence on the day after Royal Assent. Explanation of the changes Amendments to the Land Rights Act Definitions Item 1 amends subsection 3(1) to provide for the definition of Executive Director, being the Executive Director of Township Leasing referred to in section 20B. 2


Requests for Executive Director to hold leases Item 2 amends section 19 to insert new subsections 19(3A), (3B) and (3C). New subsection 19(3A) applies where a Land Trust is considering leasing some land. The relevant Land Council may make a written request to the Minister that, if the Land Trust and the Commonwealth intend to enter into a lease, the Executive Director enter the lease on behalf of the Commonwealth and administer the lease. The Minister must agree or refuse the request in writing in accordance with new subsection 19(3B). New subsection 19(3C) provides that the notices given under new subsections 19(3A) and (3B) are not legislative instruments. This declaratory provision is included to assist readers, as the notices are not legislative instruments within the meaning of section 5 of the Legislative Instruments Act 2003. Township leasing Item 3 repeals and substitutes subsection 19A(4) and inserts new subsections 19A(4A), (4B) and (4C). New subsection 19A(4) provides that the term of a township lease can be between 40 and 99 years and that the term cannot be varied except in accordance with new subsection 19A(4A) or subsection 19A(5). New subsection 19A(4A) allows a township lease to provide for the variation of the lease by one or more extensions of the term. However, the extensions may not result in the lease being for more than 99 years. New subsection 19A(4B) makes it clear that the inclusion of subsection 19A(4A) does not, of itself, result in an implication that other types of variations to leases are not possible. New subsection 19A(4C), together with section 3C, ensures that the Lands Acquisition Act 1989 does not apply to the extension of the term of a lease. Item 4 is an application provision for the amendments made by item 3. These amendments apply only in relation to leases granted after the commencement of item 3. Item 5 amends subsection 19A(5) to provide that replacement leases must be entered into at least 20 years before the end of a lease. Item 6 inserts new subsection 19A(5A), which provides that the Minister must not consent to the grant of a replacement lease unless the Minister is satisfied that the grant would not adversely affect a sublease or other interest derived from the original lease. When a replacement lease is granted, certain interests, such as subleases granted under the original township lease, would be preserved by subsection 19A(10). However, if a sublease were to last for a period longer than the replacement lease, subsection 19A(10) would not prevent the termination of the sublease at the time the replacement lease ends. New subsection 19A(5A) will operate in such circumstances to require the Minister to consider the effect of the proposed replacement lease on the sublease and prevent consent in such circumstances. 3


Item 7 is an application provision for the amendments made by items 5 and 6. The amendment made by item 5 applies in relation to leases granted after commencement of that item. The amendment made by item 6 applies in relation to the grant of leases after the commencement of item 7 and the reference to original lease in item 6 includes a lease granted before or after that commencement. Item 8 inserts new paragraph 19C(1)(aa), extending the application of section 19C to variations to extend the term of a township lease that occur while a Commonwealth entity holds the lease. Item 9 amends subsections 19C(2) and (3) to provide that stamp duty or similar taxes are not payable as a result of an extension, and registration of an extension can occur as if the instrument of extension were duly executed under Northern Territory law. Application of Northern Territory law Item 10 amends subsection 20A(1) to ensure the application of Northern Territory law relating to the transfer of land provided for in that subsection is subject to new sections 20SA and 20SB (see item 18). This change is consequential to the expansion of the functions of the Executive Director. Expansion of functions of Executive Director Item 11 amends section 20C to include new functions for the Executive Director. The functions in new paragraphs 20C(aa) and (ab) are to enter into and administer section 19 leases and other leases, such as leases of community living areas, where the Minister has agreed to the Executive Director's involvement (see item 2 in relation to section 19 leases and item 13 in relation to other leases). The functions in new paragraphs 20C(ac) and (ad) are to enter into and administer subleases, such as subleases of town camps, where the Minister has agreed to the Executive Director's involvement (see item 13). Item 12 amends paragraph 20C(c) to expand the functions of the Executive Director that can be prescribed to include functions relating to the new matters described at item 11. Item 13 inserts new section 20CA to provide for a description of the land relevant to the Executive Director's new functions (other than land granted under the Land Rights Act - see item 2) and a process for the Minister to consent to the Executive Director's involvement in proposed leases or subleases. New subsection 20CA(1) provides that new section 20CA applies where the proprietor of relevant land (or, in some cases, of a lease over relevant land) is considering leasing (or subleasing) some or all of the land. There are three categories of relevant land: 4


· community living areas (see new paragraph 20CA(1)(a) and the definition in new subsection 20CA(5)); · town camps (see new paragraph 20CA(1)(b) and the definition in new subsection 20CA(5)); and · other land that is prescribed and has been granted or leased for the benefit of Aboriginal people in the Northern Territory (see new paragraphs 20CA(1)(c) and (d)). New subsection 20CA(2) provides that the proprietor may make a written request to the Minister that, if the proprietor and the Commonwealth intend to enter into a lease or sublease, the Executive Director enter the lease or sublease on behalf of the Commonwealth and administer the lease or sublease. The Minister must agree or refuse the request in writing in accordance with new subsection 20CA(3). New subsection 20CA(4) provides that the notices given under new subsections 20CA(2) and (3) are not legislative instruments. This declaratory provision is included to assist readers, as the notices are not legislative instruments within the meaning of section 5 of the Legislative Instruments Act 2003. New subsection 20CA(5) provides for definitions of `community living area' and `town camp' for the purposes of the section. Executive Director of Township Leasing Item 14 repeals and substitutes section 20E to provide that the Executive Director may be appointed on a full-time or part-time basis. Item 15 repeals and substitutes section 20H. New section 20H provides that a full-time Executive Director must not engage in outside paid employment without the Minister's approval, and a part-time Executive Director must not engage in outside paid employment that conflicts, or may conflict, with the proper performance of his or her duties. Item 16 repeals and substitutes section 20K. New section 20K provides for the leave entitlements of the Executive Director. A full time Executive Director has recreation leave entitlements determined by the Remuneration Tribunal and other leave of absence as granted by the Minister. Where the Executive Director is appointed on a part-time basis, the Minister may grant a leave of absence on the terms and conditions determined by the Minister. Item 17 repeals and substitutes section 20M. New section 20M permits the termination of the appointment of the Executive Director for misbehaviour or physical or mental incapacity, and requires the termination of the appointment in certain limited circumstances, including where the Executive Director acts contrarily to the provisions of new section 20H. 5


Operation of Lands Acquisition Act 1989 and application of certain Northern Territory laws Item 18 repeals and substitutes Division 6 of Part IIA. The existing Division 6 provides for the repeal of Part IIA (which relates to the Executive Director) in certain circumstances where the Executive Director is no longer required to hold township leases. Given the expansion of the Executive Director's functions, this is no longer appropriate. New Division 6 provides for several matters relevant to the new functions of the Executive Director, being the operation of the Lands Acquisition Act 1989 and the modification of certain Northern Territory laws. In general, these provisions replicate the situation that currently exists, where the Executive Director holds or is to hold a township lease under section 19A. New section 20S deals with the operation of the Lands Acquisition Act 1989. New subsection 20S(1) limits the application of the section to being for the purposes of the Lands Acquisition Act 1989. The section is intended to disapply the Lands Acquisition Act 1989 but not to affect otherwise any requirements, for example, in relation to acquiring leases of community living areas or subleases of town camps. New subsection 20S(2), together with section 3C, ensures that the Lands Acquisition Act 1989 does not apply to acquisitions by the Executive Director (on behalf of the Commonwealth) of leases over community living areas or subleases of town camps. (A similar provision is not required for acquisitions of section 19 leases by the Executive Director (on behalf of the Commonwealth), as they are covered by section 3C and subsection 19(3).) New subsection 20S(3), together with section 3C, ensures that the Lands Acquisition Act 1989 does not apply to disposals by the Commonwealth of section 19 leases, leases over community living areas or subleases of town camps. New subsections 20S(4) and (5), together with section 3C, ensure that the Lands Acquisition Act 1989 does not apply where, under the expanded functions, the Executive Director (on behalf of the Commonwealth) issues interests deriving from a lease or sublease (as the case may be). New section 20SA is modelled on sections 19C and 19D. It applies to the grant of a lease or sublease to the Executive Director as a result of the expanded functions (new subsection 20SA(1)). New subsections 20SA(2), (3) and (4) provide that stamp duty or similar taxes are not payable as a result of a grant, registration of a grant can occur as if the instrument of grant was duly executed under Northern Territory law, and any requirement under Northern Territory law to subdivide the land before a grant can occur is removed. 6


New section 20SB is modelled on section 19E. It applies in relation to leases or subleases to the Executive Director as a result of the expanded functions (new subsection 20SB(1)). New subsection 20SB(2) provides that regulations may modify Northern Territory laws relating to planning, infrastructure, subdivision, transfer of land or other prescribed matters as they apply to land the subject of a lease or sublease. The regulations will cease to have effect if the lease or sublease ceases to be held by the Commonwealth (new subsection 20SB(4)). Statutory rights over buildings and infrastructure Items 19 and 22 repeal and substitute subsections 20Y(1) and 20ZJ(1). New subsections 20Y(1) and 20ZJ(1) permit the person who holds statutory rights to allow others to exercise the rights. Where that person is the Commonwealth, the Minister may act on behalf of the Commonwealth to permit others to exercise the statutory rights. (The Minister will be able delegate this power under section 76.) Items 20 and 23 repeal and substitute sections 20ZA and 20ZL. New sections 20ZA and 20ZL permit the area over which the statutory rights apply to be varied by agreement. Where the Commonwealth has statutory rights, the Minister may, on behalf of the Commonwealth, agree with a Land Council to vary the area over which the statutory rights apply. (The Minister will be able delegate this power under section 76.) Items 21 and 24 repeal and substitute subsections 20ZE(1) and 20ZP(1). New subsection 20ZE(1) provides that the person who holds the statutory rights may determine that they no longer require the buildings or infrastructure. New subsection 20ZP(1) provides that the person who holds the statutory rights may determine that they no longer require the buildings or infrastructure. In both cases, where the Commonwealth has statutory rights, the Minister may, on behalf of the Commonwealth, determine that the buildings or infrastructure to which statutory rights apply are no longer required by the Commonwealth. (The Minister will be able delegate this power under section 76.) Functions of Land Councils Item 25 makes a technical change to each of paragraphs 23(1)(a), (b), (ba), (c), (d), (e), (ea), (f) and (fa). Item 26 inserts new paragraphs 23(1)(fb), (fc) and (fd) to give Land Councils additional functions. New paragraph 23(1)(fb) gives a Land Council the function of negotiating agreed payments under new subsection 62(1G) of the NT NER Act in respect of the grant of a lease under section 31 of that Act on behalf of a Land Trust. 7


New paragraph 23(1)(fc) gives a Land Council the function of negotiating agreed payments under new subsection 62(1G) of the NT NER Act in respect of the grant of a lease under section 31 of that Act on behalf of owners of land who fall within paragraph (b) or (f) of the definition of relevant owner in section 3 of the NT NER Act, if requested. New paragraph 23(1)(fd) gives a Land Council the function of negotiating agreed payments under new subsection 62(1G) of the NT NER Act in respect of the suspension of a lease under section 40 of that Act on behalf of the holder of the suspended lease, if requested. Item 27 inserts a new paragraph 23(1)(i) to provide that the regulations may prescribe additional functions for Land Councils. Fees Item 28 inserts new section 33B to permit a Land Council to charge certain fees. New subsection 33B(1) permits the Land Council to charge the Commonwealth a fee for reasonable expenses incurred in performing functions referred to in new paragraph 23(1)(fb), (fc) or (fd) (which relate to the negotiation of agreed payments under new subsection 62(1G) of the NT NER Act). New subsection 33B(2) permits the Land Council to charge the Commonwealth a fee for reasonable expenses the Land Council incurs in providing services prescribed by regulations. New subsection 33B(3) provides that the fee charged must not amount to taxation. New subsection 33B(4) ensures that nothing in new section 33B prevents a Land Council charging the Commonwealth a fee under existing section 33A (which permits a Land Council to charge a fee for prescribed services). Item 29 makes a consequential amendment to subsection 34(1A) to require a Land Council to notify the Minister of the fees it expects to receive under new section 33B. Item 30 makes a consequential amendment to subsection 34(4) to define administrative costs as including the expenses for which the Land Council can charge a fee under new section 33B. Item 31 makes a consequential amendment to paragraph 35(1)(b) to provide that a Land Council must spend any amounts it receives under new section 33B for its administrative or capital costs. Item 32 amends subsection 35(4) to clarify that a Land Council does not have to disburse payments it receives under existing section 33A (fees for prescribed services) or under new section 33B. Instead, subsection 35(1) requires a Land Council to spend these amounts in meeting its administrative or capital costs. Item 32 further amends subsection 35(4) to provide that a Land Council must distribute payments it receives under sections 60 and 62 of the NT NER Act for the benefit of traditional owners. 8


Item 33 inserts a new paragraph 37(2)(c), which provides that the annual report of a Land Council under section 9 of the Commonwealth Authorities and Companies Act 1997 must specify the total fees the Land Council received under section 33B during the financial year on which it is reporting. Aboriginals Benefit Account Item 34 amends subsection 64(4A), dealing with certain debits from the Aboriginals Benefit Account. New paragraphs 64(4A)(aa) and (ac) provide for the Aboriginals Benefit Account to be used for payments in relation to the acquiring of leases/subleases in the exercise of the Executive Director's expanded functions, such as the negotiation costs for these leases/subleases. New paragraphs 64(4A)(ab) and (ad) provide for the Aboriginals Benefit Account to be used for payments in relation to the administering of leases/subleases in the exercise of the Executive Director's expanded functions, such as the ongoing costs involved in administering these leases/subleases. No equivalent to paragraph 64(4A)(b) which applies to cover, for example, rental payments required under township leases is included in relation to leases/subleases held as a result of the Executive Director's expanded functions. Therefore, the Aboriginals Benefit Account is not available for any rental payments required under such leases/subleases. Delegation Item 35 inserts a new subsection 76(1A) to permit the Minister to delegate any of his or her functions or powers under Part IIB (statutory rights over infrastructure) to: a Secretary or SES employee (including an acting SES employee) within the Minister's Department; a Secretary or SES employee (including an acting SES employee) in another Department; or the General Manager of Indigenous Business Australia. Amendments to the NT NER Act Item 36 repeals subsection 52(8) of the NT NER Act. This repeal is consequential to the amendment made by item 32, which makes subsection 52(8) unnecessary. Item 37 inserts new paragraph 63(1)(f) into the NT NER Act to provide that an amount payable by the Commonwealth under new section 33B of the Land Rights Act (inserted by item 28) is payable from the Consolidated Revenue Fund, which is appropriated under section 63 of the NT NER Act. This extension of the existing special (standing) appropriation under section 63 of the NT NER Act is appropriate because amounts payable by the Commonwealth under new section 33B, and the timing of those payments, cannot be predicted in a way that would make an annual appropriation suitable. 9


Schedule 2 - Acquisition of rights, titles and interests in land Summary This Schedule makes minor improvements to several provisions in Part 4 of the NT NER Act. It also makes amendments to allow the Commonwealth and certain persons to agree on amounts to be paid in respect of the five-year leases and certain other payments, and other minor and technical amendments. Background The amendments in this Schedule include minor improvements to sections 38 (Canteen Creek) and 52 (grants by Land Trusts). There are also amendments to section 62 to allow the Commonwealth and certain persons to agree on amounts to be paid in respect of the five-year leases and certain other payments, and other minor and technical amendments. The amendments made by this Schedule commence on the day after Royal Assent. Explanation of the changes Five-year leases Item 1 makes a minor amendment to subsection 35(2) to take account of changes to section 62 (see items 10 to 14 below). Item 2 repeals and substitutes subsections 38(1) and (2) to ensure that, if, following the grant of a five-year lease of Canteen Creek, the Commonwealth grants interests over that land, such interests will be valid despite section 67A of the Land Rights Act and will not affect the traditional land claim to Canteen Creek. Item 3 makes a consequential amendment to subsection 38(3). Town camps Item 4 makes a technical amendment to subsection 47(2). Grants of interests by Land Trusts under the Land Rights Act Item 5 adds a note after subsection 52(1) to cross-refer to new subsection 52(4A). Item 6 inserts new subsection 52(4A) to permit Land Trusts to continue to grant interests (not being leases), of a kind prescribed in regulations, over land leased under section 31. This gives flexibility in case it is appropriate to allow Land Trusts to grant particular interests despite the five-year leases. 10


Item 7 repeals and substitutes subsection 52(5) to clarify that only interests referred to in subsections 52(1) and (4A) can be granted by Land Trusts while a five-year lease is in place. Effect of other laws in relation to land covered by Part 4 of the NT NER Act Item 8 makes technical changes to paragraphs 53(1)(c), 54(1)(c), 58(1)(c) and 59(1)(c). Agreed payments Item 9 makes a consequential amendment to paragraph 61(a) following the expansion of section 62 (see below). Item 10 inserts new subsections 62(1A) to (1H). New subsection 62(1A) provides for the Minister and a relevant owner (other than the Northern Territory) of land covered by a five-year lease to agree on an amount that will be paid by the Commonwealth, whether or not any liability to pay arises. New subsection 62(1B) provides that such amounts may be one-off or periodic payments. (In the latter case, these are paid while the lease under section 31 is in force.) New subsection 62(1C) provides for the Minister to request that the Valuer-General of the Northern Territory determine an indicative amount for the purposes of negotiations. New subsection 62(1D) provides for the Minister and a person who had a registered lease which has been terminated under paragraph 37(1)(b) to agree on an amount that will be paid by the Commonwealth, whether or not any liability to pay arises. New subsection 62(1E) provides for the Minister and a person whose lease has been suspended under section 40 to agree on an amount that will be paid by the Commonwealth, whether or not any liability to pay arises. New subsection 62(1F) provides that such amounts may be one-off or periodic payments. (In the latter case, these are paid while the lease is suspended.) New subsection 62(1G) provides that the Commonwealth must pay an amount agreed under new subsection 62(1A), (1D) or (1E). New subsection 62(1H) provides that, where the Land Council is not representing the other party, the Commonwealth must pay the reasonable expenses incurred in representing the other party in negotiations under new subsections 62(1A), (1D) or (1E). These expenses may include the costs to the other party of hiring a person to represent them. (Amendments are also being made to the Land Rights Act to allow Land Councils to represent parties: see item 26 of Schedule 1.) Items 11 to 13 amend subsections 62(2) to (4) to take account of requests to the Valuer-General under new subsection 62(1C). 11


Item 14 amends subsection 62(5) to refer expressly to payment of amounts determined by the Valuer-General under subsection 62(1). There is no obligation on the Commonwealth to agree to pay an indicative amount that the Valuer-General has determined under new subsection 62(1C). 12


Schedule 3 - Park lands Summary This Schedule amends the Land Rights Act to allow for the grant of 13 further areas of land which will become Aboriginal land and will be operated as national parks. Background This Schedule amends Schedule 1 to the Land Rights Act to include 13 parks and reserves which were the subject of land claims under the Land Rights Act. This arises from an agreement in September 2003 between the Northern Territory Government and the traditional Aboriginal owners of the land about the future tenure and administration of the parks and reserves. In March 2005, under the Northern Territory Parks and Reserves (Framework for the Future) Act 2003 (the Parks Act), the Northern Territory requested that the Commonwealth schedule in the Land Rights Act the 13 parks and reserves listed in Schedule 1 to the Parks Act. The land, once granted, will be leased to the Northern Territory Government for 99 years to operate as national parks. The amendments made by this Schedule commence on the day after Royal Assent. Explanation of the changes Item 1 amends subsection 77C(1), in effect, by the addition of Part 5 to the Parts listed in the subsection which allows for the amendment by regulation of land descriptions included in the Schedule. The power in subsection 77C(1) is subject to subsections 77C(2) and 77C(3). Item 2 inserts a new Part 5 at the end of Schedule 1 to the Land Rights Act, which lists 13 parks and reserves in the Northern Territory, thereby enabling that land to be granted in accordance with section 10 of the Land Rights Act. 13


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