Commonwealth of Australia (As Represented By the Department of Infrastructure and Regional Development) v Butt

The Commonwealth of Australia, represented by the Department of Infrastructure and Regional Development, sought to terminate a licence agreement and a residential tenancy agreement with the respondents, the Butts. The dispute concerned the respondents' continued occupation of premises and contiguous land after the expiry of the original agreements. The matter was heard in the Federal Circuit Court of Australia before Judge Smith.

The court was required to determine whether the licence agreement and the residential tenancy agreement had been validly terminated. Specifically, the court considered the effect of clause 10.1.2 of the licence agreement, which linked the termination of the licence to the termination of the lease, and clause 11.1.6, which provided for holding over on the licence. The court also had to consider whether the respondents had acquired rights under the *Residential Tenancies Act 2010* (NSW) that would prevent termination.

Judge Smith reasoned that the licence agreement, which commenced on 20 January 2012 for a term of 13 weeks, had entered a holding over period from 20 April 2012. Under clause 11.1.6, the Commonwealth was entitled to terminate this holding over period by giving one month's written notice. Such notice was given on 24 November 2014, making the termination effective from 15 June 2015. The court found that the licence agreement was terminated on this date, entitling the Commonwealth to immediate possession of the land subject to the licence. The court also determined that the residential tenancy agreement was terminated forthwith.

The court made declarations and orders accordingly. It declared that the licence agreement was terminated with effect from 15 June 2015. Orders were made for the termination of the residential tenancy agreement forthwith, with vacant possession of the premises to be given on or before 18 December 2015, a date which was suspended until 9 February 2016. Vacant possession of the land subject to the licence was ordered to be given forthwith.