Introduction
Local councils manage land on behalf of their communities. Land is more than a financial asset – it underpins housing, environment, culture, and long-term liveability. Disposal or acquisition decisions must therefore balance financial return with social, environmental, cultural and intergenerational outcomes.
This resource outlines principles and practices councils can adopt to ensure their land dealings contribute to community resilience, affordability, and sustainability.
Scope
This framework applies to all council-owned freehold land or land vested in council. It is not intended to replace statutory obligations but to complement them by embedding best practice.
Policy Objectives
- Ensure land transactions deliver the best overall outcome – financial and non-financial – for the community.
- Prioritise perpetual community benefit over short-term fiscal gain.
- Support affordable housing, climate resilience, and local economic renewal.
- Increase transparency, consistency, and accountability in land dealings.
1. Disposal of Land
1.1 Criteria for Disposal
Land may be considered surplus if it no longer contributes to council service delivery, community benefit, or environmental value. However, in assessing disposal, councils must first consider:
- Potential for community use or housing via leasehold or partnership models.
- Opportunities to enhance biodiversity, carbon sequestration, or flood/fire resilience.
- Heritage, cultural and social significance.
1.2 Disposal Principles
- Community First: Land sales must consider whether community or for-purpose developers can deliver greater long-term benefit than private speculative purchasers.
- Affordability Lock: Where land is sold for housing, covenants or agreements should lock in long-term affordability (e.g. Community Land Trust, shared equity, perpetual affordability models).
- Best Value: Land should not automatically be sold for highest market price if greater social/environmental outcomes can be secured.
- Transparency: All assessments and valuations to be published.
1.3 Disposal Methods
In addition to auction, tender, or EOI, councils may adopt:
- First Right of Purchase: Affordable housing developers, registered housing associations, or community land trusts should have priority opportunity to purchase.
- Leasehold Arrangements: Long-term leases (up to 50 years) can retain public ownership while enabling community-led housing, renewable energy, or farming projects.
- Hybrid Models: Combining discounted sale with binding community benefit agreements.
1.4 Use of Proceeds
Revenue from land sales should be ring-fenced for:
- Affordable housing initiatives.
- Climate adaptation and land stewardship programs.
- Local infrastructure and open space enhancement.
2. Acquisition of Land
2.1 Criteria for Acquisition
Council may acquire land to:
- Support affordable housing or community infrastructure.
- Secure biodiversity corridors, carbon sinks, or water catchment resilience.
- Protect cultural and heritage assets.
- Enable future-proofed community needs.
2.2 Principles of Acquisition
- Strategic Value: Land acquisitions must align with long-term community planning.
- Fair Price + Community Benefit: Market valuation is the baseline, but councils may consider higher purchase prices where exceptional community benefit is secured.
- Partnerships: Councils may partner with state government, housing associations, or trusts to co-acquire sites.
2.3 Statutory Alignment
All acquisitions must comply with the Local Government Act 2020, the Land Acquisition and Compensation Act 1986, the Planning and Environment Act 1987, and relevant Best Practice Guidelines.
Review
This framework should be reviewed every 4 years, or sooner if legislation, housing, or environmental circumstances shift significantly.