Are all shack owners getting new leases?No. Shack Owners who have not maintained a compliant profile (such as failing to pay their lease fees or provide their annual insurance documents) will not be offered new leases.
Will the moratorium on selling my Shack continue until the City completes the actions and presents the lease to Council again?The moratorium was put in place to allow the City to facilitate the smooth transition from the existing lease to a new lease. If a Shack Owner is able to demonstrate a legitimate or urgent need to undertake a transfer prior to the new lease being finalised, it will be considered by the City on a case-by-case basis.
While a new lease has not been finalised, the City is allowing exemptions to the moratorium on shack transfers where justified.
How will the new lease be signed?If you have supplied your email address to the City then you will receive a digital version of your lease to sign. Once you sign the document City Officers will be able to finalise the agreement and you will then receive a fully signed copy.
The City is using this method of signing leases to make sure you get your lease as quickly as possible once fully signed and to minimise the use of paper.
The City will be offering hard copy paper leases to those who prefer to sign the document in this way.
How long will it be until the new lease can be signed?The City will update the timeline on the website when it is available.
What lease fee do I have to pay between now and the new lease being signed?Until a proposed new lease fee is finalised, the lease is holding over on the same terms as are currently agreed ($2500 annually). Please ensure that you are up to date with your payments and do not fall into arrears, as this may impact your eligibility to be offered a new lease.
What are my obligations until the new lease is signed?The lease is holding over on the same terms as are currently agreed. You must continue to provide your public liability insurance documents annually (within 14 days of expiry); remain up to date with your lease fee payments; occupy the Shacks for less than 120 days per calendar year and otherwise comply with the terms in the lease.
How did the City come to the rental value of the new lease?An independent licensed property valuer provided the City with a market valuation. Licensed valuers are bound under the Land Valuers Licensing Act 1978 and they operate under a stringent framework. A land valuer determines market value of land which is based on current market evidence. This opinion is recognised as an expert opinion by financial institutions, state and local government departments.
What if I don’t agree to the new lease conditions?If you do not agree with the new lease conditions the City encourages you to email
[email protected] with your concerns so we can discuss them with you.
Given the number of stakeholders on the site, it is not possible for everyone to agree on every outcome. Individual Naval Base Shack Lessees are welcome to submit their feedback regarding capital expenditure projects when invited to do so by the City’s Officers. Each suggested project will be discussed as a separate item at which point you can voice your support or aversion to a particular project.
When will the lease go to Council for approval? Can I see a copy of the report to Council?At this stage the City plan to have a report go to Council on June 2024.
You will be able to access a copy of the report and Council agenda via the City's website.
What was decided at the Ordinary Council Meeting on 11 May 2023?Council endorsed the following alternative recommendation:
That Council:
- DEFERS endorsing the lease agreement for the Naval Base Shacks to a future Ordinary Council Meeting, once the following has been completed:
- Development of indicative costings for capital upgrades at the site and the impact each project would have on the required rental fee.
- Feedback from shack owners on which capital upgrades, and the subsequent impact on required rental values, are supported by shack owners.
- Investigates splitting lease fees into operational expenditure and capital expenditure
- Schedules a meeting with interested shack owners, City officers and Elected Members.
The alternative recommendation means that a lease agreement between the Shack Lessees and the City will not be finalised until the City has undertaken the outlined in the alternative recommendation.
Will the meeting between the Shack Owners, City Officers and Elected Members be mandatory?This (non-mandatory) meeting was held on the 10
th of April 2024. For a copy of this presentation, please email
[email protected] The formula which the City proposed to use to determine the lease fee ($3250) was a Market Valuation. This formulation was not supported in the submissions received from the Naval Base Shack Owners.
The actions outlined in Council’s alternative recommendation will allow a lease fee to be proposed which will be based on
- the operational costs of running the site; and
- the costs for delivering Capital Works projects that the Naval Base Shack Lessees wish to be delivered at the site.
Capital expenditure means the cost involved in upgrading the site and/or delivering projects. This cost would include but is not limited to developing a scope of works; planning; seeking relevant approvals; any required consultation; labour; materials; site works and formulating future asset management/maintenance.
What does ‘operational expenditure’ mean?Operational expenditure means the cost involved in managing and maintaining the Naval Base Shack site. This includes but is not limited to the cost of reactive maintenance to assets; preventative/scheduled maintenance to assets; utility consumption; site and contractor management; Emergency Services Levy; waste services; daily cleaning of facilities and administration of the site.
What is the difference between ‘capital expenditure’ and ‘operational expenditure’?Operational expenditure is the ‘day to day’ costs to keep the site; while ‘capital expenditure’ is the cost to improve or add to the site.
Why did someone get a new lease when they have unapproved works?The City has prioritized the completion of the new lease for 2024 to prevent any further delay and to ensure that Shack Owners feel secure in their tenure. Due to resourcing, a comprehensive analysis of each shack and their additions was not possible but will be undertaken in the future. The City encourages all Shack Owners who have undertaken unapproved works at the site to seek retrospective Planning and Building Approval to ensure that their lease is not jeopardized when such works are uncovered in due course.
What is retrospective approval?Retrospective approval is when you submit an application for approval of your works after they have been completed. This means you will need to submit an development application and/or building permit application for approval of the works you have completed.
The outcome of retrospective approvals could require additional works requested for approval to be granted. It is also possible that approval is not granted and you will be required to remove any additions that have been made without approval.
Is any redevelopment of the ablution amenities planned?Redevelopment of the northern and southern ablution blocks was identified as a potential project. More consultation will be undertaken with Lessees in due course.
Is the Naval Base Shacks Management Plan being updated as well?Yes. This will be submitted to Council for approval.
The proposed changes in the Management Plan include administrative changes and inclusions to the sites history as well as the new lease details.
The Plan also details potential items for upgrades or development including:
- Roads
- Drainage
- Street lighting
- Beach Access
- Pontoon
- Laundry building demolition; and
- Redeveloped ablution buildings
A draft of the updated Management Plan will be included in the item to Council in June 2024. The Council agenda and attachments are available on the City's website.
Now that the items in the alternative recommendation have been completed, the City will seek to take the proposed new lease to Council to seek endorsement.
Once the lease is endorsed, the City will consult the Minister for Lands to seek consent from the State; advertise the lease and arrange for the new lease to be signed by the Shack Lessees.
Yes. The lease fee needs to be included in advertising, so this will need to be undertaken again when a new figure is proposed.
Can I keep using my Shack until the new lease is signed?Yes.
Can I undertake repair works to my Shack before the new lease is signed?Yes. Please refer to the documents on the Naval Base Shack website on applications to carry out works.
Will selling my Shack give the new owner the same rights as me to a new lease?In instances where a Shack Owner demonstrates a genuine urgent need to sell their Shack prior to the new lease being finalised, this can be considered by the City. However, the City is not able to warrant that a new lease will be available, or the terms of a new lease. The new lease requires the consent of the State, and endorsement by Council. As such, while the City can assign the current lease over to a new Shack Owner, it is not able to guarantee that they will be given a new lease, and the terms of any subsequent lease arrangement.
Frequently Asked Questions - General
Can I sell my shack? Can I buy a shack?Please send through any details regarding yourrequest to undertake a transfer/purchase.
Before a lease agreement can be assigned, Purchasers are required to complete and pass a vetting process. Please apply via email at [email protected]
Shack Owners do have certain obligations under their lease that they are required to do each year. While the City will remind Shack Owners when possible, Shack Owners are responsible for these obligations regardless of whether the City follows it up.
The annual obligations will include:
- Payment of lease fee and demolition levy
- Providing a copy of current Public Liability Insurance
Property Services Officers are available by appointment. To make an appointment please email
[email protected]
Do not attend the City without an appointment as its likely that an Officer won’t be available to meet with you without advance notice.
The lease fee is used to cover the following costs associated with the Naval Base Shacks:
- General maintenance
- Capital improvements
- Cleaning
- Utilities – water and electricity
- CCTV and security
- Waste removal via shared bins/bins provided on site (not tip passes)
- Emergency Service Levy
The lease fee does not include Council Rates. The shack owners do not pay Council Rates.
The City has only increased the cost of the lease twice in 12 years and the market has risen during that time. The proposed fee increase equates to $27 per day for the 120 permitted days.
The demolition levy has been increased by Consumer Price Index only so that the fee is in line with inflated costs should demolition be required.
What is the demolition levy?The demolition levy was introduced in 2010-11 to cover the City’s costs in instances where a shack had to be removed and the leaseholder does not pay for its removal. This was implemented so that the City would not have to resort to expensive civil litigation to recover any outstanding debt or use municipal funds to remove private assets. The City quarantines these funds. At the end of a lease, if the owner removes their shack and makes good they receive the total of the levy they have paid back. Otherwise, the City will use the levy for the demolition of shacks.
I have paid the demolition levy for 12 years, why do I need to keep paying the demolition levy?The costs of any works continue to increase each year in line with inflation, supply and demand. The payment of an annual demolition levy ensures that the funds the City holds in quarantine for the purpose of demolition (if required) will adequately cover costs incurred.
What will happen to a shack when a lease is terminated?If a lease is terminated the Shack Owner will be required to remove their shack from the site as required under the lease conditions. If the Shack Owner does not remove their shack the City will use the demolition levy to demolish the shack and make good the land.
Why can’t the City keep a shack and sell it instead of demolishing it?The City has sought legal advice regarding this which has determined that the Shacks belong to the Shack Owners and are not the City’s property to keep and sell regardless of a lease being terminated.
The City’s Local Planning Policy 4.5 (LPP 4.5) states that the shacks have heritage character, how does that affect shacks being demolished?The intention of LPP4.5 is to protect the heritage nature of the whole the shacks at Naval Base Holiday Park with regard to their uniformity of scale that creates a unique landscape, and gives the place significant aesthetic appeal, especially when combined with the coastal setting. LPP4.5 does not remove or minimise the need to manage the site with regards to demolishing unleased shacks.
The Naval Base Management Plan will include consideration of engaging an independent planning consultant to advise the most appropriate use of vacant shack sites.
What sort of insurance do I require?Under the conditions of the new lease Shack Owners will be required to have Public Liability insurance.
Most providers do offer these three insurances in a package for holiday accommodation.
It is up to each individual Shack Owner to decide whether they want to procure Building and Contents Insurance.
What happens if I didn’t provide my Public Liability Insurance? Can I still get a lease?All Shack Owners should be aware of their obligation under the lease to provide annual insurance documents to the City. If a Shack Owner has failed to do this then a new lease will not be offered. The City has attempted to assist Shack Owners in this regard by requesting that a copy of their Public Liability insurance be provided. If the City has not received a copy of your current Public Liability insurance, then a new lease will not be offered.
Why are we limited to using our Shacks for only 120 days of the year?Kwinana is the State‘s major heavy industrial area. Many of these industries are located in Kwinana because they are potentially dangerous and they could not be located anywhere else in/near Perth. The recommended (by EPA) buffer from residences to a typical heavy industry is 1km to 5km. This is to provide protection to the residents by ensuring that any emissions are able to be diluted in the atmosphere before they reach the residential areas. It is also to provide some protection to these major industries of state and sometimes national significance so that they are not required to invest significant funds in excessive emission control and operational safety systems. The City's requirement is that the Shack is to be used for 120 days in any year no matter who is staying in the shack. The City is not supportive of some lessees using their shack for longer than 120 days in any year whatsoever, based on public health reasons.
What is a persistent breach?A persistent breach means that if you break the conditions of your lease three times and receive a breach notice from the City for breaking the lease conditions. Three breaches provides the City with the option of terminating the lease if it is considered in the best interests of the site and community as a whole.
In what circumstances can the City terminate my lease?If you are continually breaching the conditions of your lease and those actions are causing damage to the site or hardship to other tenants then the City will consider terminating the Lease.
A breach of lease can include breaking of any condition of your lease, such as failing to pay your lease fee and demolition levy; not annually providing public liability insurance and breaching of any other condition in your lease.
Will portable toilets be allowed?No. There are no dumping facilities for portable toilets at Naval Base Shacks. There have been incidents of inappropriate dumping of portable toilet contents on site and as a result, portable toilets will not be approved.
Why can’t I use my generator at the Shacks?It is a common requirement at holiday sites where users are located in a close proximity to one another that generator use be limited as it affects the enjoyment of the site by others. The restriction on the generators was agreed to during consultation with the original Naval Base Shack Community Reference Group (NBSCRG) as it was recommended by the group that the noise level was intolerable due to the close proximity of the shacks. Alternative power sources (solar and wind) that do not affect the enjoyment of the site by others are permitted.
Why are sprinklers now included in the lease?Abiding to sprinkler days set by the Water Corporation have always been a condition of the Naval Base Shack leases as it’s a statutory obligation.
The reason they have now been included in the lease under their own section is to make clear tenants obligations when it comes to using Sprinklers.
The water usage at the Naval Shacks has been excessive with a total of 19,222,000 being used in the last 12 months (equal to 8 Olympic swimming pools). Sprinkler usage outside of the boundaries of approved watering days has contributed to that usage.
I can’t be at my shack on the days sprinklers are allowed, how do I water my lawn?Like any ownership of holiday accommodation, you will need to make arrangements to maintain the surrounding area of your shack within the boundaries of the lease conditions.
I can’t get my hose to connect to the tap so why should I get in trouble for it leaking?The City understands that there are taps on site that are aged and it’s hard to find hose connections that fit and do not leak. The City is working through replacing and updating taps.
Am I permitted to run piping underground from my shack to the communal taps?No. It is impossible for the City’s contractors to locate leaks with the amount of underground piping that has developed over time. Shacks can connect to the communal taps via hoses that are above ground only, similar to a caravan connection at a Caravan Park. The expectation is that shack owners will disconnect and store their hoses when not in use.
Will the future port impact any future lease?.The Department of Planning, Lands and Heritage and Westport have indicated that there is currently no impact of Westport to the Shacks site.
Who do I talk to if I don’t know what to do? Can I come into the city to speak with someone?If you have any questions about lease conditions or what you need to do please email
[email protected] and a Property Services Officer will assist you with your questions.
Property Services Officers are available by appointment. To make an appointment please email
[email protected]
Do not attend the City without an appointment as its likely that an Officer won’t be available to meet with you without advance notice.