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Determination of compensation

This is the amount of compensation to be paid to the former landholder.Property NSW manages the determination of compensation on behalf of the Valuer General. A qualified, experienced and independent valuer who has no conflict of interest will assess the determination of compensation. When assessing the amount of compensation, a full valuation report is prepared. The report:

  • shows what has been considered by the valuer
  • addresses the concerns recorded by the former landholder on the section 39 claim for compensation form
  • addresses any other valuation issues raised by either the former landholder or acquiring authority during the valuation process
  • explains how the amount of compensation was determined. The information considered for the report will be provided to the former landholder and acquiring authority after the land has been compulsorily acquired.

All determinations of compensation are subject to a quality assurance review by a Property NSW valuer who was not involved in making the determination.

Making the determination

Valuers must consider:

(a) the market value of the land on the date of its acquisition

(b) any special value of the land to the person on the date of its acquisition

(c) any loss attributable to severance(d) any loss attributable to disturbance

(e) solatium

(f) any increase or decrease in the value of any other land of the person at the date of acquisition which adjoins or is severed from the acquired land by reason of the carrying out of, or the proposal to carry out, the public purpose for which the land was acquired

Valuers must contact:

  • the former landholder (if available). This contact is an opportunity for the former landholder to discuss the section 39 claim for compensation form, raise any issues, ask questions and provide any further information they would like considered as part of their claim.

Any new information provided by the landholder will also be provided to the acquiring authority.

The valuer will also be able to assist with information about the determination of compensation process.

  • the acquiring authority to discuss any issues they would like considered when undertaking the valuation.

The Act provides for compensation to be in the form of land or the carrying out of works if agreed to between the former landholder and the acquiring authority.

For detailed information on the methods used and factors considered by valuers when determining compensation for the compulsory acquisition of land see the Valuer General’s policy, Compensation following compulsory acquisition (PDF 170.3 KB).


The Valuer General has 30 days from when the acquisition notice is published in the Government Gazette to provide the determination of compensation, unless an extension is approved by the minister responsible for the acquiring authority.

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