Community Use of Schools – Hiring and Licensing

Completing a school council licence agreement template

Key points

The School council licence agreement template (DOCX) (staff login required) comprises 4 parts:

• Agreed terms: this section of the licence should not be altered unless legal advice has been obtained.
• Schedule 1: this section must be completed to reflect the conditions upon which the school council has agreed to licence an area of the school to a third party. Instructions for completion of this section are set out in this document.
• Execution page: this section will need to be amended to include details of the licensee. Instructions for completion of this section are set out in this document.
• Annexure A: a plan identifying the area to be licensed should be included.

Identifying the area to be licensed

Item 3 of Schedule 1 requires that the school council insert a description of the area of the school to be licenced to the third party. Please be as specific as possible.

If the area has a name or room number, it should be inserted. An accurate plan of the area (particularly if there is no unique way of identifying the area using words (for example, part of a school oval) should also be included in Annexure A. The area to be licensed should be identified by being shown shaded or outlined in colour on the plan.

Licence fee

The amount of the licence fee and how it is paid should be clearly stated in Item 7 of Schedule 1. For example:

• $100 per month (GST exclusive) payable monthly in advance or
• $1,000 per year (GST exclusive) payable yearly in advance.

If you want to increase the licence fee payable during the term of the licence, you will need to ensure that this is reflected in this Item. For example, if you want to increase the licence fee (originally $100 per year) for a 3-year licence term starting on 1 January 2023 by 5% annually, it would be described as:

• For the period 1 January 2023 to 31 December 2023, $100 per year (GST exclusive) payable yearly in advance
• For the period 1 January 2024 to 31 December 2024, $105 per year (GST exclusive) payable yearly in advance
• For the period 1 January 2025 to 31 December 2025, $110.25 per year (GST exclusive) payable yearly in advance

Security deposit

Payment of a security deposit (Item 14) will help protect the school council against costs incurred in circumstances where the licensee breaches the licence (for example, the licensee damages the school or doesn't pay the licence fee). If this occurs the school council will generally be entitled to deduct the cost of repairs or non-payment from the security deposit.

Permitted use

Specific details of the licensee's permitted use of the area should be clearly inserted in Item 11 of Schedule 1. Be aware that some uses may require that the licensee obtain specific permits (for example, local government/council permits) or licences (for example, temporary liquor licence). Whilst it is the responsibility of the licensee to obtain these permits and licences, it is recommended that the school council seek written confirmation from the licensee that all necessary permits/licences have been obtained.

Rates and taxes

Generally, the use of school land for educational purposes will be exempt from the payment of rates and taxes. However, for use by third parties, particularly those which are of a more commercial nature, a school council may become liable to pay rates and taxes which can be assessed and applicable to the licensed area (typically council rates).

Further information regarding the potential payment of these costs can be obtained from your local council. The template licence requires that, if such rates and taxes are applicable, the licensee will be responsible for the costs applicable to the licensed area (see clause 4(a)).

Outgoings

Item 8 of Schedule 1 provides an opportunity for school councils to pass on the costs of outgoings (gas, electricity, water, phone and so on) to the licensee. If a school council wishes to pass on these costs to the licensee, it will need to ensure that these costs can be adequately proportioned (for example by area) or billed separately to the licensee.

Special conditions

Special conditions may be relevant if there are specific matters which the school council has agreed with the licensee that aren't otherwise covered by the general terms and conditions of the licence. As any special conditions inserted into Item 15 of Schedule 1 will override the general terms and conditions of the licence (to the extent of any inconsistency), legal advice in relation to the drafting of special conditions is strongly recommended.

Working with Children Check

Clause 13 of the licence requires that if required by the school council, the licensee comply with certain working with children and police check requirements. The school council should carefully consider the nature of the use, the time of use and its duty of care issues when considering what type of requirements the licensee should be required to comply with.

All licensees and/or their employees/volunteers/agents that engage in 'child related work' as defined in the Worker Screening Act 2020 (Vic) are legally required to have a valid Working with Children Check (WWCC) (or have their application in progress). It is the responsibility of the school council to confirm that all persons who legally require a WWCC have one.

For information to assist you in determining whether the relevant persons require a WWCC, please refer to the WWCC website. If in doubt, contact the Legal Division.

Once the school council has determined what persons, if any, require a WWCC, the school council must obtain satisfactory evidence of a valid WWCC. This would involve:

• obtaining copies of the relevant person's WWCC card or assessment notice (the card would be preferable where possible as it contains the card-holder's photo) and keeping such copies on file with the licence
• using the online checking system to confirm the status of the person's WWCC. This is done by entering the person's card number and surname on the WWCC website at Check Status, confirming the status, and file noting the date the status check was undertaken (a short note on the copy of the card/notice is sufficient).

If a person has applied for a WWCC and their application is currently being progressed, the person is legally permitted to commence child related work (so long as they have not previously been denied a WWCC). In these circumstances, the school council would require a copy of the person's application receipt, keep it on file, confirm the status online (as above) as 'in progress', and make a file note of the date the status check was undertaken. If the school council requires that the licensee obtain police checks or comply with other requirements (such as relevant department policies), these will need to be communicated to the licensee in writing. A copy of this letter should be kept with the original licence.

Signing the agreement

Once the licence is completed, the licensee should sign 2 copies of the licence and then return both copies to the school council for signing. See step 17 in the School council licence agreements – template completion checklist (PDF) for further details on how to complete the execution page.

One copy of the licence which has been signed by both the licensee and the school council should be provided to the licensee. The other fully signed copy should be kept in a safe place by the school council.