Lease A Racehorse

Leasing a racehorse is a great way to get involved without paying an up-front purchase price.
Throughout the term of the lease (usually between 1-3 years) you will be effectively considered as the owner, and be required to pay all costs associated with the upkeep of the horse.

You pay the Lessor (owner) an agreed rent by way of prizemoney earned by the horses (generally around 20-30% of prizemoney after the jockey and trainer receive their 5% and 10% respectively)

The following conditions apply to the leasing of racehorses:

• Up to 20 individuals or a combination of individuals and registered syndicates may race a horse under Lease.
• A Lease Agreement should be obtained and lodged with the Principal Racing Authority (e.g. Racing NSW) in the State in which the horse is to race.
• The Agreement should be completed by the parties concerned, checked carefully before signing and any alterations or additions must be initialed by all parties.
• The Agreement should be lodged with the Principal Racing Authority together with the relevant fee. The fee for a lease in New South Wales is $60. Principal Racing Authorities in other states should be contacted regarding the current fee.
• When the Lease is recorded a Lease Endorsement Certificate will be returned to the Manager or a nominated person.
• The Trainer should lodge a Stable Return in the names of the Lessees.
• A Lease may be taken out for a period of time from one day to an agreed number of years. It is for racing purposes only.
• The Owner cannot offer shares in the Lease unless registering with ASIC.

 

Download the PDF Version for horses to be raced in NSW.

For general Leasing enquiries, please contact us via the following email - leases@racingnsw.com.au

 

Option A and B Leases Explained

The Option A lease was created to assist owners to receive their prizemoney directly from Racing NSW (due to a changes made by the ATO which affected the payment of prizemoney).
With this option, ALL owners MUST be listed in the lease as Lessees.Rules with Option A leases:

• All owners MUST be listed as Lessees
• There can be no more than 20 Lessees (including owners)
• Share percentage must add up to 100%
• There is NO rental with the Option A lease
• Owners must specify whether or not they are included to pay racing expenses

 

The Option B lease is a normal leasing situation where the owners are not required to take a share in the lease, and an agreed rental amount is set.
Please note that prizemoney CANNOT be split with the Option B lease, and all prizemoney is sent to the managing lessee.

Rules with Option B leases:

• Owners may become lessees (not a requirement)
• There may be no more than 20 lessees
• A gross or net rental amount MUST be stated (including if rental is Nil/0%)
• Share percentage must add up to 100% (do not confuse the rental amount as a share)

Form Checklist

Before returning your lease form, please ensure the following is complete:

• All LESSEES and LESSORS (owners) have signed the first page
• A rental agreement has been stated (Option B) / Option to pay racing expenses is answered (Option A)
• Ensure each lessee has completed their full details (including date of birth), completed a share percentage and SIGNED the form
• Ensure the percentage of all lessees combines to 100%

Lease forms are not intended to be difficult to complete, however they can be confusing at times. If you are still in doubt about how to complete the form, or unsure which lease type is correct for your situation, please contact the lease department on leases@racingnsw.com.au or 02 9551 7529

New Lease Amendment Form Introduced

 

1 August 2018

Racing NSW is pleased to announce a simplified way to amend Leases currently in place on NSW horses.

 

In an effort to simplify changes for the connections, the new Lease Amendment form notates the outgoing and incoming party by signature with the Managing Lessee responsible for informing the other Lessees, and the Managing Owner responsible for informing and the other Owners.

 

This is similar to the practice introduced by Racing Australia in 2014 for Transfers of Ownership because of the inconvenience of having to ask all owners to sign and acknowledge what often is only one minor shareholder change.

Lease amendments - simplified

During the life of the Lease, one or two lessees may change – people leave and others come in. Under the previous system, this required a cancellation of the entire lease and all parties to complete a new lease document and include the new parties.

The new Lease Amendment form in place in NSW, carries the following requirements:

• Must be a NSW lease
• Outgoing lessee signs out
• Incoming lessee signs in
• Manager Owner (Lessor) signs, confirming that they have advised all other owners (Lessors)
• Managing Lessee signs and lodges with Racing NSW, confirming that they have advised all other lessees
• All other conditions of the lease and expiry date remain

You can download a copy of the Lease Amendment form here LEASE AMENDMENT.

Cancellation of a Lease

In order to cancel a current lease, ALL lessees must sign a Cancellation of a Lease Form, specifying the date the Lease is to be cancelled.

Download the PDF Version for horses whose Lease was completed in NSW.

To peruse the latest list, just click on the following link - Racehorse Leasing Forum

Broodmare Forum

To peruse the latest list, just click on the following link - Broodmare Forum

Owning Racehorses and the Personal Property Securities Act

The personal property securities regime (“PPS”) under the Personal Property Securities Act 2009 (Cth) (“PPSA”) came into effect in Australia on 30 January 2012. It is important that all racehorse owners become familiar with the benefits and risks arising under it.

This is new Commonwealth Government Legislation that impacts ownership of many assets, including racehorses. We recommend that you read this notice carefully and act immediately.

Racing or breeding leasing arrangements by racehorse owners will be deemed to be “PPS Leases” under this new law. Any owner leasing their horse to another party should act immediately.

They will need to register their ownership of the horse on the government’s new national PPSA register. This is a separate process to lodging the usual racing lease document with RISA or Racing NSW.

 

Also, it is possible that the broad wording of the PPSA would be interpreted so as to extend to arrangements between owners, trainers, agistment properties or any other entities that have care of the owners’ horses (that are not Leased horses).

Although these latter situations appear to be contrary to the Government’s intent when publishing the Legislation, the broad nature of the PPSA may unexpectedly capture these arrangements and owners should consider whether these agreements (whether they be written or oral) should also be registered.

Is there help?
Yes. The Government has set up a PPSA website - www.ppsr.gov.au - which includes a help line 1300 007 777, an email address - enquiries@ppsr.gov.au and a number of guidelines.

Disclaimer
The material on this notice is provided for general information only, and on the understanding that Racing NSW is not providing professional advice on a particular matter.

This notice contains information that is intended to simplify the law for ease of comprehension. In addition, errors or omissions can occur in the preparation of notices. Therefore, before relying on the material, users should independently verify its accuracy, completeness, relevance for their purposes and that it is up-to-date.

Before any action or decision is taken on the basis of any material in this notice the user should obtain appropriate independent professional advice.