Agistment Agreements Explained: Essential Guide For Australian Businesses

Stepping into agistment - whether you’re caring for horses, cattle, sheep or alpacas - can be a rewarding way to generate steady income from rural land.

For animal owners, agistment offers safe, practical care. For landowners, it’s a way to monetise paddocks and facilities you already have.

But like any business arrangement, success hinges on more than a friendly handshake. Clear, written contracts and the right legal setup will protect your business, your land and the animals in your care.

This guide breaks down what an agistment agreement is, what to include, how to set up your agistment business in Australia, and the key laws to follow - so you can operate confidently from day one.

What Is An Agistment Agreement?

An agistment agreement is a contract between a landowner (the agistor) and an animal owner (the agistee) under which the agistor provides land, facilities and (sometimes) services for the care and grazing of animals in exchange for payment.

Agistment is common in the horse industry but also used for cattle and other livestock. The agreement sets expectations on care, access, fees, risk, insurance and what happens if the relationship ends or payments fall behind.

In practice, agistment can range from full-care (the agistor handles day‑to‑day feeding and care) to self-care (the agistee does daily care while the agistor provides land, water and basic facilities). Whatever your model, a tailored Agistment Agreement is essential to prevent misunderstandings and reduce disputes.

Is Agistment A Viable Business In Australia?

There’s strong demand for quality agistment driven by horse ownership, hobby farming and lifestyle changes. It can offer:

• Predictable, recurring revenue from paddocks and facilities you already own
• Flexible operations (scale up or down; offer full-care or self-care options)
• Opportunities to add services (training, riding arenas, clinics, float parking)

However, it’s still a business - you’ll need systems for bookings, invoicing, biosecurity, emergencies and property maintenance. The right contracts, insurance and compliance plan will make the difference between a smooth operation and constant headaches.

Step-By-Step: Setting Up Your Agistment Business

1) Clarify Your Service Offering And Risk Profile

Decide whether you’ll offer full-care, part‑care or self‑care. Consider capacity, fencing, water, shelter, feed storage, arena access, float parking, biosecurity measures and your approach to fire, flood or drought. Your risk profile and insurance needs will flow from this plan.

2) Choose A Structure And Register Your Business

Most agistment businesses start as either:

• Sole trader - simple to set up, but no separation between personal and business liabilities.
• Partnership - similar to sole trader but shared between two or more people; partners are typically jointly liable.
• Company - a separate legal entity with limited liability, often preferred as you scale and take on greater risk.

You’ll need an ABN to invoice customers and, if you expect turnover of $75,000+ per year, you must register for GST. Tax and GST obligations depend on your structure and circumstances - consider speaking with an accountant for advice specific to your situation.

If a company suits your goals, you can handle the setup and governance documents (like a constitution) as part of a Company Set Up. Whichever structure you choose, make sure the legal owner of the business matches the party named in your customer contracts.

3) Confirm Local Planning, Zoning And Permits

Before you accept animals, check your local council rules. Some councils require permits for operating a rural business, set stocking caps or impose conditions around manure management, vehicle access or flood planning. Factor these obligations into your site rules and pricing.

4) Put Insurance In Place

Public liability is critical, particularly if you allow riding, lessons or third‑party access to your property. Discuss with your broker whether you need care, custody and control cover, volunteer cover, property cover and business interruption insurance. Insist that agistees maintain their own insurance for their animals and activities, and reflect that in your agreement.

5) Lock In Your Core Legal Documents

At a minimum, have a tailored Agistment Agreement that fits how you operate. If your property has shared facilities or house rules, include a site rules schedule and consider a signed Waiver for recreational activities on-site.

If you hire staff to feed, rug, or maintain the property, use a compliant Employment Contract and ensure you meet Fair Work obligations (rosters, breaks, pay rates and safety).

If you collect client details for bookings and invoicing, publish a clear Privacy Policy and keep records securely.

6) Consider Payment Security And Debt Recovery

Late or unpaid agistment fees are a common pain point. Your contract should include strong payment terms, default interest and clear steps if invoices aren’t paid.

Some operators also use a security interest over the animal or related equipment (with the owner’s agreement) and register it on the PPSR to strengthen their position if the agistee defaults. This requires careful drafting (for example, using a General Security Agreement) and is not suitable for every model, so get advice before relying on it.

What Should Your Agistment Agreement Include?

Every operation is different, but a well-drafted agreement typically covers:

• Parties and premises - legal names, property address, permitted areas and facilities (e.g. stables, arena, float parking, feed rooms).
• Animals covered - species, number, identifying details (microchip/brands), condition on arrival and any pre‑agistment health checks.
• Services and care model - full‑care vs self‑care, feeding and watering responsibilities, rugging, exercise, spelling, farrier and vet coordination, biosecurity protocols and gear storage.
• Fees and payments - rates (daily/weekly/monthly), inclusions, extra services, bond or security, invoicing, accepted payment methods, default interest and late fees.
• Access and conduct - hours of access, supervision of children and visitors, riding rules, arena etiquette, float movements, dogs, smoking and safety obligations on-site.
• Health and welfare - vaccination, worming, disease protocols, quarantine procedures, reporting of illness or injury and emergency response (including when the agistor may call a vet).
• Risk allocation - responsibility for injury, escape or property damage, insurance requirements for both parties, and exclusions or limitations of liability (within what the law allows).
• Damage and repairs - responsibility for damage to fences, arenas, stables or equipment and how costs are assessed.
• Default, liens and abandonment - what happens if fees aren’t paid, the process for notices, removal of animals, and (where permitted) asserting a lien or disposal following statutory processes.
• Ending the arrangement - notice periods, early termination for breach, vacate procedures, and how to handle uncollected animals or gear.
• Dispute resolution - practical steps to resolve issues before escalating.

A template can be a useful starting point, but every property, herd and service mix is unique. A tailored Agistment Agreement makes sure your operating reality and local requirements are properly reflected.

What Laws And Regulations Apply To Agistment Businesses?

Agistment businesses sit at the intersection of animal welfare, land use and consumer services. Here are the key areas to cover.

Local Planning, Zoning And Nuisance

Your local council may set stocking limits, manure management requirements and access conditions. There may also be restrictions on commercial activities in certain zones or rules about signage, parking or noise. Confirm what applies to your land early.

Animal Welfare And Biosecurity

Animal welfare duties are set in state and territory legislation and codes of practice. Regardless of your care model, your business should implement reasonable feed, water, shelter and supervision standards, align with biosecurity protocols and set clear responsibilities in your contracts.

Australian Consumer Law (ACL)

If you provide agistment to the public, you must comply with the Australian Consumer Law. That means your marketing must not mislead, your services must be provided with due care and skill, and unfair contract terms should be avoided in standard form agreements. When drafting exclusions or limitations, keep the ACL in mind - particularly for services related statements under provisions like section 18 (misleading or deceptive conduct) and section 29 (false or misleading representations).

Waivers, Recreational Services And Liability Limits

Many agistment businesses ask clients and visitors to sign a waiver acknowledging risks associated with riding or handling animals. Waivers can help, but there are legal limits. State and territory laws treat “recreational services” differently, and you cannot contract out of certain consumer guarantees. Use a carefully drafted waiver with wording that aligns to your state’s legislation and the ACL. Insurance is still essential.

Privacy And Client Data

Even small agistment businesses collect personal information for bookings, yard access and invoicing. The Privacy Act generally applies to businesses with annual turnover of more than $3 million. Some smaller operators may still have obligations due to the nature of information they handle (for example, certain health information) or because they choose to follow best practice.

Publish a clear, accessible Privacy Policy, collect only what you need, and store records securely. If you operate CCTV in shared facilities, ensure signs and policies are in place and consider how footage is used and retained.

Employment Law (If You Hire Staff)

If you employ staff for feeding, rugging or maintenance, you must meet Fair Work obligations around contracts, pay rates, hours and safety. Put a compliant Employment Contract in place, keep accurate records and implement sensible workplace policies (think: safety, harassment, and use of vehicles or machinery).

Unpaid Fees, Liens And Abandoned Animals

It’s critical to set out a clear process for unpaid fees and uncollected animals. In some states, legislation recognises liens over agisted animals and provides a statutory process for notice, retention and eventual sale or disposal to recover amounts owing. Those processes are technical and must be followed precisely (for example, giving formal notice, waiting specified periods and accounting for sale proceeds).

Your agreement should also include practical steps: notice of default, a right to suspend access, daily holding fees after termination, and a clear authority to engage a vet in emergencies. If you intend to rely on a lien or disposal process, get legal advice to ensure your process aligns with the applicable state law.

Security Interests And The PPSR

In limited scenarios (and with the owner’s agreement), you may take a security interest over collateral and register it on the PPSR to help manage default risk. This is an advanced option and must be set up correctly - including appropriate documentation like a General Security Agreement and timely PPSR registration. Start by understanding what the PPSR is and when it’s useful.

Hot Tips For Running A Smooth Agistment Operation

• Put everything in writing - rely on clear contracts and site rules rather than informal chats.
• Set expectations early - define care responsibilities, communication channels and how emergencies are handled.
• Invoice consistently - use direct debit or clear payment cycles and follow up quickly on arrears.
• Keep records - animal condition on arrival, vaccinations, vet visits, incidents, notices and photos of any damage.
• Review annually - update your contracts, pricing and insurance as your business changes.
• Plan for disasters - document procedures for fire, flood, storms and disease outbreaks.

Key Takeaways

• Agistment can be a sustainable, flexible business model in Australia - but you’ll need strong contracts, insurance and compliance to operate safely.
• A tailored Agistment Agreement should cover care responsibilities, access, fees, risk, insurance, defaults, liens and what happens if animals are not collected.
• Set up your business properly: choose a structure, get an ABN, register for GST if required and confirm local council permissions before you start trading.
• Understand your legal obligations under animal welfare laws, the ACL, privacy rules, employment law and any state‑based processes for liens and abandoned animals.
• Use carefully drafted risk management tools such as a Waiver, appropriate insurance and, where suitable, PPSR registrations - each with the right wording and processes for your state.
• Review your documents regularly and get advice early so your agreements keep pace with your services and legal requirements.

If you’d like a consultation on setting up your agistment business or need a custom agreement, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.