Express Law No. 322

Key changes you need to be aware of

Delegations to officers in acquiring authorities relating to the acquisition and disposal of interests in land (ss 40, 119 and 123 of the LA Act)

Section 6, which deals with the powers of the Minister delegated to the officials specified in Sch 2, and is the key provision relied upon by ‘acquiring authorities’, has been expanded in the 2024 Delegations as follows.

Addition of new delegated power under s 40(6) of the LA Act

Where an interest in land is acquired by agreement, delegated officials may now give a certificate confirming that the acquisition by an acquiring authority amounts to a ‘standard commercial transaction’ under s 40(6) of the LA Act. However, this does not include acquisitions of freehold interests in land, or leasehold interests in land that exceed a period of 30 years in duration, including lease extension options.

This is the first time the power to give a certificate under s 40(6) has been delegated to officials outside of the Department of Finance. The Department of Finance has released guidance material to assist agencies with this new delegation.

Disposal of leasehold interest now up to 30 years in duration

Delegated officials may now approve a disposal by a grant of lease up to 30 years in duration (including a lease extension option). This has been increased from 22 years under the 2022 Delegations.

Directions by Minister (s 139(3) of the LA Act)

The Minister has made certain directions under the 2024 Delegations which apply to all delegated officials acting in the exercise of power so delegated. The primary changes to s 8 are outlined as follows:

• The directions now apply to delegated officials who have the power to give a certificate under s 40(6) of the LA Act.
• The requirement for delegated officials to give a written statement in relation to the acquisition or disposal of an interest in land to the Assistant Secretary in the Department of Finance has been removed (formerly s 8(2) of the 2022 Delegations).
• Acquiring authorities are now required to maintain a register detailing the exercise of powers by delegated officials. This information can be requested by the Minister or the Department of Finance.

Schedules

A number of changes were made to ‘Schedule 2 – Acquisitions and Disposal Delegations’ and ‘Schedule 3 – Overseas Land Delegations’. Agencies should review these schedules and ensure that officials making decisions under the LA Act hold delegated power to do so.

Departmental contact

The Department of Finance can be contacted at LAA@finance.gov.au.