What a Biodiversity Stewardship Agreement commits you to

A Biodiversity Stewardship Agreement (BSA) is a permanent commitment. It is registered on the title, runs with the land in perpetuity and binds whoever owns the land next. In return, the site is paid to be managed for conservation.

That permanence is the main decision. Everything else follows from it.

Who the agreement is with

A BSA is made with the NSW Biodiversity Conservation Trust (BCT). The BCT manages the payments fund and makes annual payments to the landholder.

What you agree to do

Each BSA comes with a management plan for the site, setting out how biodiversity will be maintained and improved.

You carry out the plan, and it is reviewed every 5 years.

The credits the site generates depend on what is there now and on those management actions.

How you are paid

Payment comes from selling the credits the site creates.

• Credits are sold to developers who need offsets, government agencies, or the Biodiversity Credits Supply Fund.
• Part of each sale goes into a Total Fund Deposit, held in the Biodiversity Stewardship Payments Fund.
• The BCT invests that fund and pays you annually to cover the cost of managing the site under the plan.
• The market sets the credit price, but it must be enough to cover the Total Fund Deposit. Anything above that you can keep as profit.

Your first annual payment arrives once the agreement is signed and the Total Fund Deposit is paid.

What permanence means in practice

The agreement stays with the land. A future buyer takes the land with the BSA, the management plan and the payment schedule.

The part of the land under the agreement is committed to conservation. Plan around it rather than finding out later.

Questions to settle before you sign

• Which part of the property would go under the agreement, and which would stay free for farming or building?
• Is there demand for the credits this land would create, and what have similar credits sold for?
• Will the annual payments cover the real cost of the management plan on your land?
• How does the agreement fit your succession or sale plans?
• What are the tax implications for you? Ask your accountant early. Credit sales and payments are not something to work out after the fact.

The first 2 questions can be answered from a desk. That is what our Biodiversity Value & Market Report is for. A formal Biodiversity Assessment Method (BAM) assessment by an accredited assessor then sets the credits the site can actually sell.

For a plain-English start on whether credits are realistic for your block, read can my land generate biodiversity credits?

Common questions

How long does a Biodiversity Stewardship Agreement last?

In perpetuity. The agreement is registered on the land title and runs with the land.

Does a BSA bind the next owner if I sell?

Yes. Because it is registered on title, it is binding on subsequent owners of the land.

How are landholders paid under a BSA?

When credits sell, a Total Fund Deposit is paid into the Biodiversity Stewardship Payments Fund. The Biodiversity Conservation Trust uses it to make annual payments to the landholder for managing the site.

Can I keep money above the Total Fund Deposit?

Yes. Any money made from the sale of credits beyond the Total Fund Deposit can be retained by the landholder as profit.

Sources

• Biodiversity credits, NSW Biodiversity Offsets Scheme
• Generate and sell biodiversity credits, NSW Government
• Total Fund Deposit and discount rate, NSW Government
• Biodiversity Stewardship Agreement template, NSW Government

This article is general information, not legal, financial or tax advice. A MapCheck report is a preliminary screening tool.