Inkerman Station Pty Ltd as Trustee for the Inkerman Station Trust v Allan (No. 2)

In the Federal Court of Australia, the case of Inkerman Station Pty Ltd as Trustee for the Inkerman Station Trust versus Allan (No. 2) was presented. The applicant, Inkerman Station Pty Ltd, sought a statutory order of review concerning the approval of an ‘additional purpose’ for a grazing lease. The dispute centred on whether the approved ‘additional purpose’ of low key tourism was compatible with the primary grazing purpose of the lease. The court was tasked with determining if low key tourism both did not interfere with and was complementary to the grazing purpose.

The legal issues before the court involved the interpretation of statutory provisions governing grazing leases and the criteria for approving additional purposes. Specifically, the court had to assess whether the approval of low key tourism as an additional purpose was consistent with the statutory requirements and if it met the criteria of not interfering with and being complementary to the primary purpose of grazing. The court examined the legislative framework, the specific terms of the lease, and the nature of low key tourism to determine if the approval was valid.

The court found that the decision to conditionally approve the additional purpose of low key tourism was flawed. The approval did not adequately address whether low key tourism did not interfere with the grazing purpose and whether it was complementary to it. The court held that the approval did not sufficiently consider the potential impacts of low key tourism on the primary grazing activities. Consequently, the decision of 26 April 2016 to conditionally approve the fourth respondent’s application for the additional purpose was set aside. The court scheduled a hearing to consider further orders and costs, with the option for the parties to agree on consent orders in the meantime.