Owning trees on someone else's land

Under the law, trees and sequestered carbon can be owned separately from the land on which they grow. The government passed this law to encourage investment in plantations.

Forestry/carbon rights are an alternative to a lease arrangement. Their advantage lies in reduced costs since they do not require a survey or attract stamp duty. However, not all companies that lease land for trees use this option, so if you want to get involved in this kind of arrangement you should be clear about the legal basis of your arrangement. Ask your legal adviser about the merits of leasing land or entering a forestry rights agreement.

If you want to grow trees commercially on someone else's land (with their consent of course) you should request the owner of the land to register a covenant or forestry rights agreement on their title to protect your interests. This would be especially important if the land changed hands; the covenant or agreement would protect your ownership of the trees.

Native vegetation or plantations?

The issue of native vegetation or plantations was raised in an appeal case against the decision of the responsible authority, the East Gippsland Shire Council, to grant a permit to clear native vegetation and establish a eucalyptus plantation on a block near Bendoc.

In making its determination the Victorian Civil and Administrative Tribunal reported that it is settled public policy that private forestry plantations be encouraged. The Tribunal was of the view that:

The Tribunal rejected the appeal and granted a permit for the clearing of native vegetation and for establishing a eucalyptus plantation. The permit was subject to the list of conditions mainly to do with environmental safeguards including requirements to minimise the potential for soil erosion, degradation of water quality in drainage lines and the safe use of chemicals.