Amendments to the Land Administration Act 1997 and Public Works Act 1902 came into effect last Thursday and they likely mean pastoral lease values and diversification projects remain uncertain.
The State government says the aim of the changes is to reduce red tape and facilitate more effective administration of Crown land.
Lands Minister John Carey said the amendments delivered a range of benefits, including increased opportunities and greater security for the pastoral industry and the creation of a new form of non-exclusive tenure - a diversification lease.
But the Pastoralists and Graziers Association of WA (PGA) believes the new Land and Public Works Legislation Amendment Act 2023, does not come close to providing the security pastoralists are seeking for their leases.
PGA president Tony Seabrook said he was disappointed the government was not prepared to stand up for the pastoral industry - and agriculture in general.
"These changes to the act are a minor step that will not provide a stronger form of tenure for pastoralists," Mr Seabrook said.
"There is no security provided on the way current leases are drawn up.
"And there is no statutory right of renewal when leases expire."
These key points will make it hard for pastoralists to borrow significant amounts of money from lenders against their leases so they can invest into diversification projects, according to Mr Seabrook.
"And why would they invest in diversification anyway if their leases are about to expire and they have no first right of renewal?," he said.
"We have repeatedly asked for pastoralists to be given a statutory first right of renewal on their leases, but the government is just not listening.
"Without this right of renewal, you could realistically assume there will be a negative impact on future pastoral diversification projects.
"Why would an investor purchase a station when the future of the lease is uncertain, especially if it was about to expire?"
Elders Real Estate pastoral specialist Greg Smith said if obtaining diversification leases followed a similar path to registering a carbon project, where eligible interest holder consent (native title holders and claimants) is needed, it may prove a very difficult lease to obtain.
He said the margins in a pastoral operation, which were subject to seasonal conditions and commodity prices, may well put the process beyond the reach of many pastoralists.
"In the case of leases that are not long enough to register a carbon project, there may be sufficient room to negotiate both a lease extension and carbon project approval at the same time with eligible interest holders," Mr Smith said.
"I think (the introduction of this act) has been a missed opportunity.
"An irrevocable right of renewal - while a minor change - would add to security of tenure for landholders.
"Time will tell how effective the changes are to stimulating or utilising Crown land and pastoral leases for other projects.
"I am not all that enthusiastic about our coastline being lined with wind turbines and thousands of acres of rangelands being covered with solar panels."
Mr Carey said the grant of a diversification lease would allow large areas of Crown land to be used for multiple purposes for a range of industries - including renewable energy - while supporting the State's objective to reach net zero by 2050.
He said the ability to have tenure across broad areas of land for multiple uses would create employment and business opportunities, support capacity building and generate other social and economic outcomes for Aboriginal people, including opportunities to establish new businesses and partner with proponents for renewable energy and other projects.
Mr Carey said the Department of Planning, Lands and Heritage consulted widely on reforms to the Land Administration Act 1997, including undertaking public consultation on the policy framework guiding the use of diversification leases on Crown land.
"This act modernises two outdated laws and cuts red tape around land tenure approvals and projects to allow more efficient administration of the State's extensive Crown land estate," Mr Carey said.
"The introduction of a diversification lease will support the State's transition to net zero by 2050 through opening up Crown land for renewable energy proposals, while providing for the co-existence of mining and native title rights and interests similar to pastoral leases.
"This act also provides pastoral lessees an ability to extend the term of their leases, transfer pastoral permits when pastoral leases change hands, as well as a change to the timing for lodgement of the mandatory annual returns, to better align with industry mustering practices."
At the time the act was introduced to State Parliament, the Liberal Party's Mining and Pastoral MLC Neil Thomson said pastoralists, local governments, environmental groups, native title holders and renewable energy companies were all up for something in the 131-page bill.
He said there were going to be much stronger powers to revoke, amend, excise or forfeit land from the control of local governments.
"That all comes down to how the changes affect the 'management orders' that are used by local governments to control community lands, such as parks, roads and lots leased to third parties," Mr Thomson said.
"These changes also affect conservation and other community groups."
Mr Thomson said the changes would make it easier for the government to take control over whatever parcels of Crown land that attracted its attention.
He said it followed on from a year when Planning Minister Rita Saffioti extended powers allowing the WA Planning Commission to override local planning schemes when approving individual developments.
"As for rental rate calculations, that looks like good news for pastoralists - in the short-term at least - but I say this with caution," he said.
"I know there is deep seated anxiety in the pastoral industry about the endless red tape, including a new land management accreditation system."
Mr Thomson said diversification leases appeared to be set up for renewable energy companies.
"The ability to obtain a diversification lease without open contestability bothers me," he said.
"There is already a pattern of secrecy around the land and property dealings of this government, and this is just might be a facilitator of a growing trend.
"There is much hype about how diversification leases can be used for a range of activities, including tourism, carbon farming and horticulture.
"But limits on those uses and the associated costs will probably mean those stakeholders will either need a big partner (such as renewable energy company) to make it stick.
"I think many will choose to persevere with existing arrangements."
Mr Thomson said after the Aboriginal Cultural Heritage Act fiasco, the Liberal Party was committed to working with landowners to ensure there was a strong focus on property rights and to protect the future of WA's vital livestock industry.
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