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ARTICLE · 30 NOVEMBER 2025

Diversification Leases – Understanding The Opportunities

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his new class of lease was intended to address the limited scope of permitted land use under pastoral leases and to facilitate additional uses of Crown land.

AustraliaReal Estate and Construction
Matthew Lilly
Matthew Lilly
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Diversification leases

In 2023, the WA State Government introduced Part 6A of the Land Administration Act 1997 (WA) (LAA Act), which provided for 'diversification leases'. This new class of lease was intended to address the limited scope of permitted land use under pastoral leases and to facilitate additional uses of Crown land.

The introduction of diversification leases provides greater tenure security for renewable energy projects on Crown land. However, for projects on private land, land access and tenure arrangements remain subject to commercial negotiations between project proponents and landowners.

The lessee of a diversification lease is required to manage the land using best environmental management practices appropriate to the area, considering the permitted uses of the land. This includes maintaining the condition of the land and taking measures to prevent or mitigate land degradation.

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