Land grants in the Swan River Colony

The Swan River Colony, established in June 1829, was the only British colony in Australia established on the basis of land grants to settlers. Under the conditions stipulated by the Colonial Office, settlers would be granted land in proportion to the value of assets and labour that they brought to the colony. To ensure "productive" use of land, settlers were not given full title to their grants until they had been sufficiently "improved". The system of land grants continued until 1832, after which crown land was disposed of by sale at auction.

Under the initial land grant conditions, settlers were granted 40 acres (162,000 m²) of land for every £3 of assets invested in the colony. Assessment of the value of assets was left to the discretion of the authorities, whose valuations were inaccurate and inconsistent. One settler observed a tendency to overvalue cattle while undervaluing general cargo, and Statham (1981) cites an example where two rabbits entitled a settler to a grant of 200 acres (809,000 m²).

For the purposes of assessing land entitlements, assets had to be physical capital applicable to land use; money was not assessed. In consequence, many settlers maximised their land entitlements by arriving with large amounts of expensive capital but very little cash. This gross overcapitalisation caused the financial ruin of many early emigrants, and had a lasting deleterious effect on the colony's economy. Moreover, much of the larger machinery that was imported was useless in Western Australian conditions.

Settlers were also entitled to 200 acres (809,000 m²) of land for every adult introduced at their expense, with lesser entitlements for children. This condition had the effect of encouraging settlers to bring out indentured servants, and some brought out more than they were capable of employing and supporting in the long term. Indentured servants received their keep, but earned no wages until they had paid off their passage; thus the widespread use of indentured servants tended to immobilise the labour workforce and reduce the market for goods and services.

When the first settlers arrived at the colony, it was quickly discovered that the quantity of good land had been greatly exaggerated. In fact the only good farmland near the site of the colony was a narrow corridor of alluvial soil along the Swan and Canning rivers, and much of this was immediately taken up by government officials and military personnel. The vast amounts of land promised to settlers was so far out of proportion to the available good land that Stirling was obliged to limit the amount of river frontage per grant, forcing the Surveyor-General John Septimus Roe to grant long thin "ribbon" allotments each with a small amount of river frontage. Stirling also limited the amount of land that each settler could claim near Perth, with the balance of their entitlements to be claimed further out, in areas yet to be declared available for selection.

...
Wikipedia